My parents, "Sammy" and "Jess," are legally married and currently live together but have separate finances. They lived separately for several years. Sammy receives a few hundred dollars' more social security than Jess. In 2024, Sammy sold stocks and purchased a house, and Jess moved back in with Sammy. They filed 2024 taxes jointly.
Jess received a letter indicating that the tax return showed an increase in income and had triggered IRMAA to the tune of about $240 a month (for both Medicare Part B and Part D). Sammy has received no such letter.
I don't know much about social security and want to know if this makes sense. First, is my understanding correct that the sale of stocks was capital gains, and that is what (likely) triggered IRMAA? Sammy and Jess didn't have any other changes in income such as wages from a job; they are both retired.
Since the sale of stock was expressly to purchase a house, and was undertaken by Sammy (involving stocks only Sammy owned, and now the house is only in Sammy's name), does it make sense that Jess be penalized in this way, or would it be worth contesting this?
Does it make sense that the capital gains would not trigger IRMAA for Sammy (who has not received a letter), or should Sammy expect this as well at some future date?
In the future, is there any way to prevent one or both of them from triggering IRMAA if Sammy sells stocks to undertake something like a home renovation?
EDITED to add: Will the social security be reduced by IRMAA for just one year or for two? I'm confused by reading that Medicare does a "two-year lookback" - does that mean they won't look again and will assume Jess's and Sammy's income has gone up for two years?
Thank you in advance for shedding light on this for us.
