CARES Act and IRMAA reduction

[netmouser]

I received a letter from the SSA that showed I have large surcharges for IRMAA Medicare premiums B and Part D that are taken from my SS monthly deposit in 2021. However, because of the CARES act, I am not taking an RMD this year. For this reason, my income for 2020 dropped to the point I should have no surcharges.

What are the steps to now stop the SSA from deducting the surcharge from my SS monthly deposit in the new year 2021? It is not a life change event where you can appeal, like loss of a pension. Or do you have to let this play out and eventually the SS will see the tax return and automatically adjust the surcharge? I read that the surcharge is based on a tax return from 2 years ago so this is pretty confusing. In 2021 assuming an RMD withdrawal so the income will rise again and I'll have surcharges.

[NCperson]

your 2021 surcharge is based on your 2019 tax return.

if your 2020 income is quite low because your RMD is zero, then you'll see that reflected in your 2022 surcharge.  

[netmouser]

Thanks, so confusing.  So you let it play out, no appeal, it'll show up when calculated two years from now.

[NCperson]

correct - you will see the lower IRMAA surcharge effective with your January, 2022 social security payment as that surcharge (or lack thereof) will be based on your 2020 tax return, which you will be completing in the next few months.  

[Critter-3]

If the 2019 AGI increase was due to a one time unusual situation  then you can fight the increase ... you don't have to just grin and bear it.  https://www.aarp.org/retirement/social-security/questions-answers/income-affect-medicare-premium.htm...

[MyName]

Thankyou very much.  

[MyName]

Thank you, very helpful.