The amount of premiums deducted from RSDI benefits for SMI under Medicare or Medicare
Part D is unearned income. Refunded SMI/Medicare Part D premiums are not income.
EXAMPLE:
John's Title II benefits for January 2024 through May 2024 are withheld because of
expected work and earnings. John reports in June 2024 that they quit working in February
2024 after sending the annual earnings report. John paid SMI premiums for January
- March 2024, April - June 2024, and July - September 2024. A Title II check sent
in July 2024 includes full benefits for January - June 2024 and refunds SMI premiums
for August - September 2024, which will be withheld from future checks. For SSI purposes,
the part of the check, which represents full benefits for January - June 2024 is unearned
income in July 2001 and the refunded SMI premiums for August - September 2024 are not income.