Can unfiled tax returns delay Social Security benefits at FRA and Medicare enrollment?

My cousins husband went thru something similar. SS didn't deny him benefits but they DID hold them up while they investigated. Took almost 4 months to sort out! Medicare was a bigger headache for him - they wanted proof of income for the IRMAA determination and without tax returns it was a nightmare. Tell your brother in law to file those returns ASAP even if he can't pay whats owed right away.

Unfiled tax returns don't automatically prevent you from receiving Social Security retirement benefits. SSA and IRS are separate agencies, but they do share information. The real issue is that without filed tax returns, SSA may not have complete earnings records to calculate his Primary Insurance Amount (PIA) correctly, especially if he's self-employed. For Medicare, the bigger concern is he's already 2 years late for enrollment. He'll face permanent late enrollment penalties (10% for each 12-month period he could have had Part B but didn't), and he'll need to wait until the General Enrollment Period (January-March) with coverage starting July. He should: 1. File those tax returns immediately 2. Apply for Social Security right away 3. Contact Medicare about special enrollment options that might be available to him

when my dad retired the ssa used his w2s not his tax returns to figure his benefit amount. if your bro in law has been paying self employment taxes they should have that on record. the Medicare penalty is the biggest problem here!!! my mom had to pay extra FOREVER because she signed up late

I had a NIGHTMARE dealing with both SSA and Medicare last year because of unfiled taxes. My benefits were delayed for 5 months and I almost lost my house!!! The local office kept giving me different answers every time I called. I finally found a service called Claimyr (claimyr.com) that got me through to an actual SSA agent after trying for weeks. They have a video showing how it works: https://youtu.be/Z-BRbJw3puU Basically, your brother-in-law needs to: 1) File those tax returns IMMEDIATELY 2) Apply for Social Security right away 3) Request an earnings record from SSA to make sure all income is accounted for. Tell him not to delay any longer - the Medicare penalties just keep growing!

My personal experience FYI: I retired in 2023 and hadn't filed taxes for 2 years (was going through cancer treatment and just didn't have the energy). SSA DID pay my benefits but they calculated them based on older earnings which messed up my amount. After I filed the missing returns, they recalculated and I got an adjustment payment. THE BIG PROBLEM was Medicare - got hit with both the late enrollment penalty AND a higher IRMAA surcharge because they defaulted me to the highest income bracket without tax returns to prove otherwise. Tell your BIL to file those returns IMMEDIATELY!!!!!!!

The real question is why hasn't he filed his taxes for 3 years?? The IRS will come after him eventually. Social Security might be the least of his problems tbh

To answer your follow-up question - no, he doesn't need to pay all back taxes before receiving benefits. SSA doesn't care about tax debt. However, if he owes the IRS, they can potentially garnish up to 15% of his Social Security benefits through the Federal Payment Levy Program. For Medicare, he needs to act during the next General Enrollment Period (January-March 2025). The Part B premium penalty is 10% for each full 12-month period he could have had Part B but didn't sign up. Since he's 2 years late, that's a 20% penalty he'll pay for the rest of his life. He should also check if he qualifies for any Special Enrollment Periods - sometimes there are exceptions for unusual circumstances.

There's a critical aspect of this situation that hasn't been fully addressed. As a self-employed person, your brother-in-law's earnings only get credited to his Social Security record when he files a tax return with Schedule SE. Without those filings, SSA may be missing significant earnings in his record. He should: 1. Immediately request his earnings record from SSA (through my Social Security account online) 2. Compare this with his actual earnings for those years 3. File those tax returns with Schedule SE to ensure all earnings are credited 4. Apply for both Social Security retirement and Medicare right away Regarding Medicare, he's in what's called a "penalty situation" now, but he should still enroll immediately to prevent further penalties. The Part B premium penalty increases by 10% for each full 12-month period of delay. The Medicare IRMAA (Income-Related Monthly Adjustment Amount) determination will also be complicated without recent tax returns, potentially placing him in a higher payment tier by default.

This happened to my neighbor and he did get his benefits but they were calculated wrong. Be prepared for a long fight with SSA to get it fixed. Just make sure he files those returns ASAP!

Thank you all SO MUCH for the helpful advice. I just talked to my brother-in-law and gave him all your suggestions. He's going to file the tax returns this week (he's meeting with an accountant tomorrow). He's also going to apply for Social Security right away and check his earnings record. I'm really worried about those Medicare penalties though - sounds like he's going to be paying extra for the rest of his life. :( I'll update this thread once we know more about how it all works out.

I'm glad to hear your brother-in-law is taking action! Getting an accountant involved is smart - they can help ensure everything is filed correctly and potentially set up payment plans if he owes taxes. One thing to add: when he applies for Social Security, he should specifically mention the unfiled returns to the representative. They may be able to flag his application for review once those returns are processed, which could help avoid delays. Also, if his wife had any Social Security benefits before she passed, he might want to ask about survivor benefits - sometimes those can be higher than his own retirement benefit. Keep us posted on how it goes!

Just wanted to add from my experience working in benefits administration - your brother-in-law should also consider requesting an expedited review of his Social Security application once he files those tax returns. Since he's already past his Full Retirement Age, he may be entitled to retroactive benefits for up to 6 months prior to his application date. The key is getting those Schedule SE forms filed ASAP so his self-employment earnings show up in the SSA system. Also, when he meets with the accountant, he should ask about filing amended returns if any of his previous years' earnings were underreported - this could actually increase his benefit amount if his earnings record gets updated with higher income figures. The Medicare situation is tough but manageable - just make sure he understands that the penalty is calculated monthly, so every month he delays enrollment now makes it more expensive forever.

I work for a tax preparation service and see this situation frequently with self-employed clients. Your brother-in-law definitely needs to prioritize filing those returns immediately, but here's something important that hasn't been mentioned yet - he should make sure the accountant files Form 8919 if he received any 1099s where contractors didn't pay the employer portion of Social Security taxes. This could significantly impact his benefit calculation. Also, once he files, he can request a "Request for Reconsideration of Social Security Earnings Record" (Form SSA-561) if any self-employment income is missing from his record. The good news is that SSA typically processes these corrections fairly quickly once the tax returns are in their system. The Medicare penalties are unfortunate but unavoidable at this point - just make sure he enrolls during the next General Enrollment Period to stop the bleeding!

As someone who just went through the Medicare enrollment process myself, I wanted to add that your brother-in-law should also look into whether he qualifies for any Medicare Savings Programs or Extra Help with prescription drug costs once he gets enrolled. Given that he's been out of the regular tax filing system, his actual income situation might qualify him for assistance programs that could help offset some of those penalty costs. The state Medicaid office can help determine eligibility for these programs. Also, when he does enroll in Medicare, make sure he considers a Medicare Supplement plan right away - he'll have guaranteed issue rights for the first 6 months after enrolling in Part B, regardless of any health conditions. After that window closes, he could be denied coverage or charged higher premiums based on his health. It's a lot to navigate but there are resources available to help!