Muncie Times, Muncie, Delaware County, 7 July 2005 — Page 26

Page 26 • The Muncie Times • June 16, 2005

Ask SHIPP:

Help with paying medical prescriptions comes next year

Senior Health Insurance Information Program Doris Higgins Regional Program Manager Q: My neighbor got a letter from Social Security telling her about help paying for her prescriptions in 2006. Why did I not get one? A: Over the course of the summer, social Security will be sending millions of people with Medicare letters and an Application for Help with Medicare Prescription Drug Plan Costs (Form SSA-1020). These letters explain that if your income is below $14,355 ($19,245 couple) you may have to pay the monthly premiums or deductibles associated with the new Medicare Prescription Drug Plans. Your prescription co-pays

could be as little as $2. Your resources must also be below $10,000 ($20,000 couple). These resource limits can be slightly higher (an additional $1,500 per person) if you plan to use some of your money for burial expenses. Resources include such things as bank accounts, stocks and bonds. Your house, car and personal possessions are not counted as resources. Even if your annual income is higher, you still may be able to get help. Some examples include if you are supporting other family members who live with you, or if you have earnings from a job. If you receive an application, you should complete and return it as soon as possible. Letters are being sent out by zip code, so your may still be on its way. , You can request an application by calling

Social Security at 1-800-7724800 or by calling 1-800-MEDICARE. You can also call SHIIP at 1-800-452-4800 and request the Finding Help with Prescriptions packet, or find out how to set up an in person consultation with a volunteer in your area. You can also visit your local Social Security office or visit their web site at www.socialsecurity.gov. Starting July 1, you will be able to fill out the application on-line at www.socialsecurity.gov/pr escriptionhelp. After you apply. Social Security will review your application and send you a letter to let you know if you qualify. Then you must enroll in a Medicare Prescription Drug Plan to receive the extra help. It is in your interest to choose the plan that covers your prescriptions and best meets your needs. You can select a plan Nov. 15,

2006; you will be assigned to a plan by Medicare. If you have Medicare and receive Supplemental Security Income (SSI) payments, or have Medicare and Medicaid , or the state of Indiana pays your Medicare premiums for you, you will be automatically signed up for help in paying the costs of the Prescription Drug Plans. You are eligible for the assistance and will not be required to do any paperwork. Note: The Prescription Drug Plans, which start in January 2006, are for everyone enrolled in or eligible for Medicare Part A or B regardless of income. Sign up for these plans is voluntary, although delaying enrollment could lead to higher premiums if you do have other prescription coverage that is as good as, or better than the Prescription Drug Plans.

Sources: www.socialsecurity.gov Address your questions to: Ask SHIPP SHIIP is a free, unbiased counseling 311 W. Washington St, Ste. 300 program provided by the Indiana State Indianapolis, IN 46204 Department of Insurance. For assistance. Or www.in.gov/idoi/shipp call your local SHIIP site to make an 1-800-452-4800 appointment or call the state office, to obtain a list of local SHIIP sites

SOCIAL SECURITY

By James Warmer Social Security District manager in Muncie, Indiana

Now that this year’s tax season is over, it is the time to decide if there is anything you could do to make the riling of your tax returns easier when next April rolls around. If you found that you owed federal taxes on your income this year, you may want to consider hav-

ing federal income taxes withheld from . your monthly Social Security benefit payment. Although you are not required to have federal taxes withheld, you may find it easier than paying quarterly estimated tax payments. About one-third of all eople receiving Social ecurity benefits have to pay taxes on their benefits. This is true for individuals filing a federal tax return on total income of more than $25,000, and for mar-

ried couples filing a federal tax return on total income of more than $32,000. If you are interested in taking the easy route to paying taxes, here is what you need to do. You must complete IRS Form W-4V, the Voluntary Withholding Request, and select the percentage of your monthly benefit amount you want withheld. You cannot designate specific dollar amounts. After you have made your selection, sign

and return the form to your local §ocial Security office by mail or in person. To get Form W-4V, you can call the IRS toll free number, 1-800-829-3676, or you can download the form from our website at www.socialsecurity.gov/o nline/form.html. If you have any questions about voluntary tax withholding from Social Security benefit payments, visit us at www.socialsecurity.gov/p ubs/10077.html. Or call

1-800-722-1213 and ask for the booklet. Social Security What You Need to Know When You Get Retirement or Survivors Benefits. For more general information about taxes and older Americans, ask the Internal Revenue Service for Publications 554, Tax Information for Older Americans, and Publications 915, Social Security Benefits and Equivalent Railroad Retirement Benefits

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