50+ Lifestyles

Your Social Security

By Christina Vital
Manager
Rock Island Social Security office

LOWER INCOME MIGHT MEAN LOWER MEDICARE PART B PREMIUM

If you have Medicare coverage and you pay a higher Part B premium due to your higher income, here’s some news that may be comforting during these troubling economic times.

If you have experienced a significant reduction in your overall income, Social Security might be able to reduce the amount of your Medicare Part B premium as well.

The significant reduction in income can be as a result of a number of changes: marriage, divorce or annulment, death of a spouse, work reduction, work stoppage, reduction of income due to a loss of income-producing property, and loss or reduction of certain forms of pension income.

If any one of these events has happened to you, just provide Social Security evidence of the event and tell us how it has reduced your income. Evidence could be a death certificate, letter from your employer about your loss of work, or something of that nature. If you filed a federal income tax return for the year in question, we’ll need to see your signed copy of the tax return. If your income will not change until the following year, you can give us an estimate of what you think your income will be.

Once you show us evidence of the event and provide proof or an estimate of your reduced income, Social Security will update the records and, if appropriate, adjust your Medicare Part B premium. You can request a new decision and ask that we use more accurate tax return information if:

• You amended your tax return for the year we used to determine your premium and it changes the income we count;
• You provide proof from IRS of an error in the tax return information we used to make our decision; or
• Your tax filing status for the year we used to determine your premium was “married filing separately” and you did not live with your spouse at any time during that year.

If you wish to report a significant reduction in your income so we can adjust your Medicare Part B premium, visit the Social Security website at www.socialsecurity.gov/mediinfo.htm, or call us toll-free at 1-800-772-1213 (TTY 1-800-325-0778) or visit your local Social Security office.
To learn more about Medicare Part B coverage, visit www.medicare.gov or call 1-800-MEDICARE (1-800-633-4227; TTY 1-877-486-2048).

TAX TIPS FROM SOCIAL SECURITY

The holidays are over, the gift-giving (and spending) is done, and you’re almost finished returning all of the things you don’t want or need. You’ve even jotted down your New Year’s resolutions and plan to stick to them.

Time to relax? Maybe not right away — it’s time to start thinking about your taxes.

Here are Social Security’s top three tips for making tax time a lot easier.

1. Don’t forget the children. Make sure the kids (and all the dependents) you list on your annual tax forms have Social Security numbers. Yes, children do need Social Security numbers. There once was a time when a child did not require a Social Security card until later in life, but in 2010, that day is long gone. If you want to claim your child as a dependent on your tax return, your child will need a Social Security number. For many families, it’s not only the kids who will need a number. All dependents listed on your federal tax returns will need Social Security numbers, including a dependent parent who lives with you and receives support from you. If any of your dependents needs a Social Security number, you can get an application at www.socialsecurity.gov.
2. Check the names and numbers. It’s not enough for everyone on your tax return to have a Social Security number — they also must be the correct numbers, and they must match your names exactly. The Internal Revenue Service (IRS) checks all the names and Social Security numbers on your tax return against Social Security’s records. If the names and numbers do not match Social Security’s records, you will receive a letter from IRS asking you to explain the discrepancy. You cannot receive a tax refund until the discrepancy is resolved — which could mean an unnecessarily long delay.
3. Social Security tax on Social Security benefits. If you receive Social Security benefits and your total income, including benefits and any other income such as wages, pensions, or investment income is high enough, you may have to pay taxes on a portion of your benefits. So plan accordingly as you work out your budget. You may have to pay taxes on your Social Security benefits if:

• you file as an individual and have a total annual income of $25,000 or more; or
• you file a joint return and have a combined total annual income of $32,000 or more.

These simple tips can move taxes from monumental to manageable when the time comes to file your tax return.
Learn more about Social Security at www.socialsecurity.gov.