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: An individual's Title II benefits for January 2001 through May 2001 are withheld because of expected work and earnings. He reports in June 2001 that he quit working in February 2001 after sending the annual earnings report. He paid SMI premiums for January - March 2001, April - June 2001, and July - September 2001. A Title II check sent in July 2001 includes full benefits for January - June 2001 and refunds SMI premiums for August - September 2001, which will be withheld from future checks. For SSI purposes, the part of the check, which represents full benefits for January - June 2001 is unearned income in July 2001 and the refunded SMI premiums for August - September 2001 are not income.