Retroactively stopping Social Security Benefits to avoid the new "SALT torpedo"

[TakeFive]

I'm in an unusual tax situation this year. I retired, started Social Security Payments, and sold my home (of 25 years) for a very large one-time gain that greatly exceeds the $500,000 residence gains exclusion. The OBBB legislation increased the SALT deduction cap (a great benefit to me), but also created a "SALT Torpedo" that excludes high MAGI filers. My home profit + social security benefits put me over the MAGI limit, causing me to lose much of the new SALT deduction. This legislation was enacted after I had already enrolled in Social Security, and had I known it was coming I would have delayed enrolling until 2026 , when my AGI will be MUCH lower.

I now realize that I have the option of filing form SSA-521 to withdraw my Social Security application, and it can be retroactive ("wipe the slate clean") if I pay SSA  back all the money they paid me. Removing SSA benefits from my 2025 income would reduce my MAGI enough to avoid the "SALT Torpedo", but I assume that I must pay back the SSA benefits before the end of the year, otherwise the benefits would appear on my SSA-1099 and be subject to tax, pushing me over the SALT Torpedo threshold. (Correct me if I'm wrong about that.)

Today is December 11, 2025. Is there any chance that I could get SSA-521 processed quickly enough to pay back the money before December 31 of this year? Could I just send the check along with Form SSA-521, or do I need to wait to receive their notice of acceptance (which would probably come too late in 2026)?

I have a call in to SSA to ask about this, but wait time is over 180 minutes, and I fear I could lose valuable days waiting for their callback.

[pk]

@TakeFive , given your situation, why could you not visit the local SSA office --- there is one at least  in  each county seat town ?  Take the check , the form and visit the office -- they are still open.

[VolvoGirl]

Also FYI - if you get Social Security benefits in 2027 (yes 2027)  they look back 2 years to 2025 to determine the IRMAA extra Medicare premium for high income.   

My Social Security letter for 2026 IRMAA amounts.   The IRMAA is on top of the standard Medicare premium deduction of $202.90.

Solved: IRMAA

[TakeFive]

@pk Thanks for the suggestion. Local offices are by appointment only. Earliest available appointments are Jan 13, 2026. Obviously that's too late to get anything processed in 2025. I have come up with an alternate plan of action.

[TakeFive]

@VolvoGirl I'm very familiar with IRMAA, and that's a separate issue which I have a plan for. There's no viable route for a successful IRMAA appeal right now, but 12 months from now I may have a viable appeal for the IRMAA rates that we would have to pay in 2027.