Q & A
Ask Rusty – Help! Social Security Reduced my Monthly Payment
Dear Rusty: My last Social Security payment decreased by about $400, so I went to my online SS account and found a November 2025 letter explaining that my 2024 tax return showed a greatly enlarged AGI (Adjusted Gross Income). Thus, SSA decided to withdraw monies, as of Jan 2026, from my bank account because I’d owed far more monies to them! The letter itemized my greatly diminished 2026 SSA monthly payment, explaining should my next tax return show a regular AGI, then SSA would return my SS income to regular amounts (and return every prior month’s deficits?). Said letter also mentioned an optional recourse, that of compiling an “Appeal” to regain my ongoing decreased income! The extra amounts now withdrawn for Medicare Parts A and D alone are outrageously high. I’m a retired senior citizen on a fixed income.
According to SSA, my having sold a piece of land in 2024 allows SSA to decrease my SS income! Has this become a common practice against USA (senior) citizens? Thank you in advance for your input! Signed: Feeling Wronged
Dear Feeling Wronged: From what you have shared, it appears that your SS benefit amount has been affected by a provision known as “IRMAA” (Income-Related Monthly Adjustment Amount). IRMAA isn’t really a Social Security issue, rather it is a Medicare premium thing. But when IRMAA applies, it reduces your net Social Security payment because Medicare premiums are automatically taken from your Social Security benefit, thus making your net SS payment less. If you look at your gross Social Security payment (at your online “my Social Security” account) you will see that your gross SS payment did not change, but your Medicare premium did, thus affecting your net SS payment.
IRMAA, essentially, makes Medicare a “means tested” program, where those with a higher AGI can pay a higher Medicare Part B (and Part D) premium. However, IRMAA is usually based on AGI from two years prior to the current year (because your current AGI information isn’t available from the IRS when Medicare premiums are determined in October of each year). FYI, you may have received a notice in the mail in early December telling you what your 2026 Social Security and Medicare amounts would be. In a nutshell, the land you sold in 2024 apparently increased your AGI to exceed the base IRMAA thresholds (which are $109,000 if you file your taxes as a single, or $218,000 if you file your income tax as “married/jointly”). And the IRMAA supplements are “progressive” (higher if your AGI is more), so if your Medicare premiums went up by about $400 (about twice the 2026 standard premium) it’s likely that your 2024 AGI was over $137,000 if you filed as a single (or over $274,000 if you filed as “married/jointly). FYI, you can see the 2026 IRMAA brackets/premium amounts at this link: www.ssa.gov/benefits/medicare/medicare-premiums.html
A couple of additional points:
• Your Medicare premiums will, indeed, revert to the standard amounts for 2027, if your 2025 AGI amount is under the IRMAA threshold for your tax filing status.
• There is no premium for Medicare Part A (which is coverage for inpatient hospitalization care) because you are receiving Social Security benefits. However, there is a premium for Part B of Medicare (which is coverage for outpatient medical services), and you must also separately pay a premium for Part D (which is coverage for prescription drugs offered by private insurers). And these IRMAA supplements apply even if you have a Medicare Advantage plan from a private insurer.
Unfortunately, your only “recourse” is, as SSA suggested, to appeal the IRMAA supplement, but that is usually successful only if you can prove you had a “life changing event” which caused (or will cause) your AGI to be less than that used to determine your IRMAA surcharge. Your best option at this point will likely be to appeal using a “Request for Reconsideration” (Form SSA-561) asking that your 2026 Medicare premium be based on a recent year’s (e.g., 2025) lower income.
Finally, IRMAA isn’t really a new thing – it was enacted in 2003, effective in 2007. But it does have a profound effect on many seniors, as I explained in this article I recently published on the topic: https://amacfoundation.org/irmaa-a-medicare-surprise/
This article is intended for information purposes only and does not represent legal or financial guidance. It presents the opinions and interpretations of the AMAC Foundation’s staff, trained and accredited by the National Social Security Association (NSSA). NSSA and the AMAC Foundation and its staff are not affiliated with or endorsed by the Social Security Administration or any other governmental entity. To submit a question, visit our website (amacfoundation.org/programs/social-security-dvisory) or email us at ssadvisor@amacfoundation.org.