TN 3 (02-09)
HI 01120.020 Life Changing Event (LCE) – Divorce or Annulment
A. Policy
B. What Evidence is Needed to Support the Change
C. How to Process the Request
A. Policy
Divorce or annulment of a beneficiary could cause the tax filing status and MAGI to change. (See HI 01101.020B. for the tables used to determine the IRMAA thresholds.) It is possible for the effect on the MAGI to be delayed. Reports of divorce or annulment only apply to the reporting spouse. Do not extend the use of the more recent tax year to the ex-spouse. If the nonreporting ex-spouse is also affected by the LCE, it is each individual's responsibility to contact SSA.
B. What Evidence is Needed to Support the Change
If the beneficiary reports a termination of marriage, SSA will need proof of the marriage termination and tax information for the tax year to be used.
If no valid proof of the marriage termination is shown on SSA records (MBR, EVID, etc.), follow GN 00305.140 to obtain preferred evidence of proof of marriage termination.
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 the PY-1 tax return shows a significant reduction in MAGI.
NOTE: If the beneficiary provides an estimate of MAGI, process the request using the estimate. Request the beneficiary to supply 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
If | Then |
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The beneficiary has proof of divorce or annulment and alleges a change in MAGI and/or tax filing status for the current tax year. | Evaluate the evidence of divorce or annulment. 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. |
| 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 the evidence provided on the EVID screen in Shared Processes (See GN 00301.286 through GN 00301.300 and MSOM EVID 001.003). |
The beneficiary does not have proof of divorce or annulment and alleges the divorce or annulment will change the tax filing status for the current tax year. | |