Effective Dates: 10/15/2012 - Present
TN 3 (02-09)
A. Policy
B. What Evidence is Needed to Support the Change
C. How to Process the Request
D. How to Record Evidence Provided on EVID Screens
A. Policy
A beneficiary may request and qualify for use of a more recent tax year to determine IRMAA based on a reduction in the beneficiary's (and/or spouse's) work hours. Some examples of work hour reductions would be partial retirement or a change from full-time employment to part-time employment. All LCE reports only apply to the reporting spouse. Do not extend the use of the more recent tax year to the non-reporting spouse. If the non-reporting spouse is also affected by the LCE, the non-reporting spouse is responsible for contacting SSA.
B. What Evidence is Needed to Support the Change
If the beneficiary states he or his spouse has a work reduction that will change his MAGI for the current tax year, SSA will need MAGI and tax filing status information for the tax year he is asking SSA to use and proof of the reduction.
A beneficiary may submit the following tax information:
An estimate of MAGI and tax filing status for the tax year they are requesting SSA to use (current year or PY-1), or
A signed copy of the PY-1 tax return (or a filed amended tax return with an IRS letter of receipt for PY-1) if PY-1 tax return shows a significant reduction in MAGI.
As proof of work reduction, SSA will accept any evidence that clearly documents the event such as:
A statement from an employer,
Past and current pay stubs showing a change in hours,
Corporate minutes,
Record of business transfer (Self-Employment), or
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Beneficiary's attestation under penalty of perjury, regarding reduction in work hours.
NOTE: If the beneficiary provides an estimate of MAGI, process the request using the estimate. Request the beneficiary to submit a signed copy of the tax return once it has been filed with the IRS. Once the filed tax return is received follow the procedures listed in HI 01120.065. If a beneficiary alleges electronic filing, ask the beneficiary to print and sign a copy of the electronic return. If a beneficiary is updating a MAGI estimate, follow the procedures listed in HI 01120.065.
C. How to Process the Request
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If |
Then |
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The beneficiary alleges a reduction of work (or the spouse's work reduction) that could affect MAGI for the current tax year |
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Evaluate the evidence of work reduction.
NOTE: Accept the beneficiary's statement as proof of the work reduction. On the IRPP screen read the attestation statement and inform the beneficiary that they are attesting under penalty of perjury that they have had a work reduction that has caused a reduction in their MAGI.
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Obtain MAGI and tax filing status information from the beneficiary for the tax year to be used.
NOTE: Two separate premium year inputs are necessary with all LCEs.
Access the IRMAA screens (See MSOM T2PE 008.001 through MSOM T2PE 008.019) |
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On the IRMN screen
Enter the Beneficiary's Own SSN. In the “Select the Desired Option” field select “1” Establish Input the premium year that the new initial determination request is for. In the “Select the Desired Function” field select “1” Life Changing Event Input the Tax Year the beneficiary requests we use to determine the IRMAA. Press Enter
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The PYTY screen appears when there is data on file for the tax year requested and it is displayed under the Highest Probative Value Data Field. (For an explanation of Highest Probative see MSOM T2PE 008.019.)
If you select “1” Use Highest Probative Data, the system will process the determination using that data on file. The data will be propagated to the IRMA screen. If you select “2” New Tax Data, the system will process the determination using the new information provided as long as the value of the data is of higher value than the information on file.
Press Enter. -
On the IRLC screen
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Show Proof as “1” Proven
Record the beneficiary statement on the remarks line Press Enter On the IRMA screen Input the beneficiary's alleged adjusted gross income and tax exempt interest for the tax year the beneficiary is requesting to use. NOTE: If selection “1” Use Highest Probative Data on the PYTY was selected, the information will be propagated and cannot be changed. On the “Select Type” field select the appropriate tax source based on the information provided by the beneficiary. See MSOM T2PE 008.005. On the “Select Filing Status” field enter the appropriate filing status for the beneficiary.
Show Proof as “1” Proven. Press Enter. The IRRE Screen will display the current and recalculated IRMAA data. The “New Determination Results” field will provide the determination based on the information entered.
The IRMN Screen will display an alert to go to the EVID screen to document proofs submitted for the event reported. Pressing any “PF” key or the “Enter” key from the IRMN screen, will take you to the Shared Processes Menu. Record any evidence provided on the EVID screen in Shared Processes (See GN 00301.286 through GN 00301.300 and MSOM EVID 001.003). See HI 01120.025D. |
D. How to Record Evidence Provided on EVID Screens
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If |
Then |
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The beneficiary provides a statement from an employer. |
Access the EVID screen in Shared Processes (See GN 00301.286 through GN 00301.300 and MSOM EVID 001.003). Select “OTHER” as the document submitted as proof. If the letter states the date the work reduction took effect, record that date as the “Document Event Date.” For the “Issuance/Recordation Date” show “Y.” For the “Date Issued” show the date of the letter On “Document Type” enter: Letter from employer For the “Place Document Created” show the city and state of the employer. On the “Comment” Line enter: name of the employer (do not abbreviate)-work reduction-employee: name of beneficiary or spouse EXAMPLE - Social Security Administration-work reduction-John Q Public |
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The beneficiary provides past and current pay stubs showing a reduction in hours. |
Access the EVID screen in Shared Processes (See GN 00301.286 through GN 00301.300 and MSOM EVID 001.003). Select “WAGES” as the document submitted as proof. For “Document Event Date” show the date of the reduction of work. On the “Document Type” enter: PAY STUBS. For the “Place Document Created” show the city and state of the employer. Document the old pay stub and the new pay stub on the same EVID screen. Show old information first. All entries must be for a year. If the pay stub shows an annual salary, document the annual amounts. If the pay stub shows only a monthly, biweekly or weekly amount, calculate the annual amount in order to document it. On the “Comment” line enter: name of employer (do not abbreviate) mmddyy (the date of the earlier pay stub) gross annual income $$$$$.¢¢-work reduction- mmddyy (the date of the later pay stub) $$$$$.¢¢ EXAMPLE - ABC Company 050506 $250500.30-work reduction-103006-$160000.00. |
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The beneficiary provides Corporate minutes. |
Access the EVID screen in Shared Processes (See GN 00301.286 through GN 00301.300 and MSOM EVID 001.003). Select “Other” as the document submitted as proof. For “Document Event Date” show the date the change occurred (this should be in the minutes). For the “Issuance/Recordation Date” show “Y”. For “Date Recorded” show the date the minutes were recorded. On the “Document Type” line, enter: Corporate Minutes. For the “Place Document Created” show the “City and State” of the business. On the “Comment” Line enter: work reduction- Name of business (do not abbreviate) (document any verbiage used in the letter that states the reduction). EXAMPLE - Purses by JP, work reduction-John Public-President now consultant as needed. |
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The beneficiary provides Record of business transfer (Self-Employment). |
Access the EVID screen in Shared Processes (See GN 00301.286 through GN 00301.300 and MSOM EVID 001.003). Select “Self Employment” as the document submitted as proof. For the “Document Event Date” record the date of the sale or transfer. If the document has a recordation date or issuance date show as appropriate. On the “Document Type” line, enter: Record of Sale or Record of transfer (whichever is appropriate). On the “Comment” Line write: Sale or transfer (whichever is appropriate) business name from name to name. EXAMPLE - Sale, We R Cooks from John Public to Susie Que. John will be a paid consultant. |