How do I avoid Medicare Irmaa?

Asked by: Alanis Koelpin  |  Last update: February 9, 2022
Score: 4.3/5 (70 votes)

What are the best tips to avoid an IRMAA?
  1. Inform Medicare if you've had a life changing event that affected your income. ...
  2. Avoid certain income-boosting changes to your annual income. ...
  3. Utilize Medicare savings accounts. ...
  4. Consider a qualified charitable distribution. ...
  5. Explore tax-free income streams.

How do I stop Irmaa?

Appealing an IRMAA decision
  1. Complete a request to SSA for reconsideration. ...
  2. If your reconsideration is successful, your premium amounts will be corrected. ...
  3. If your OMHA level appeal is successful, your premium amount will be corrected. ...
  4. If your Council appeal is successful, your Part B premium amount will be corrected.

How is Irmaa determined?

IRMAA is determined by income from your income tax returns two years prior. This means that for your 2022 Medicare premiums, your 2020 income tax return is used. This amount is recalculated annually. ... The income used to determine IRMAA is a form of Modified Adjusted Gross Income (MAGI), but it's specific to Medicare.

Does everyone pay Irmaa?

Most people will pay the standard premium amount. If your modified adjusted gross income is above a certain amount, you may pay an Income Related Monthly Adjustment Amount (IRMAA). Medicare uses the modified adjusted gross income reported on your IRS tax return from 2 years ago.

What income is counted for Irmaa?

SSA determines if you owe an IRMAA based on the income you reported on your IRS tax return two years prior, meaning two years before the year that you start paying IRMAA. The income that counts is the adjusted gross income you reported plus other forms of tax-exempt income.

Stop Wasting Money - Medicare IRMAA Appeal

25 related questions found

Does Irmaa apply to both spouses?

The IRMAA amounts are assessed to both spouses on Medicare, individually. What is included in MAGI for IRMAA determination? According to, MAGI is the sum of your adjusted gross income (AGI) found on line 11 of Form 1040 plus all tax-exempt interest income (line 2a of Form 1040).

WHAT IS THE MAGI for 2021?

In 2021, the adjustments will kick in for individuals with modified adjusted gross income above $88,000; for married couples who file a joint tax return, that amount is $176,000. For Part D prescription drug coverage, the additional amounts range from $12.30 to $77.10 with the same income thresholds applied.

Do I have to pay Irmaa Part D if I don't have Part D Medicare?

If Social Security notifies you about paying a higher amount for your Part D coverage, you're required by law to pay the Part D-Income Related Monthly Adjustment Amount (Part D IRMAA). If you don't pay the Part D IRMAA, you'll lose your Part D coverage.

How do you determine your modified adjusted gross income?

To calculate your modified adjusted gross income, take your AGI and "add-back" certain deductions. Many of these deductions are rare, so it's possible your AGI and MAGI can be identical. Different credit and deductions can have differing add-backs for your MAGI calculation.

Is Irmaa based on AGI or taxable income?

An income-related monthly adjustment amount, or IRMAA, is an extra Medicare cost added to your Part B and Part D premiums. The Social Security Administration determines whether you're required to pay an IRMAA based on the modified adjusted gross income reported on your IRS tax return from two years prior.

How is Magi calculated for Medicare premiums?

Your MAGI is calculated by adding back any tax-exempt interest income to your Adjusted Gross Income (AGI). If that total for 2019 exceeds $88,000 (single filers) or $176,000 (married filing jointly), expect to pay more for your Medicare coverage.

How do I lower my Magi?

You can reduce your MAGI by earning less money, but a lot of people prefer to look for deductions instead. Consider the available deductions on your tax return that are above the line that shows your AGI (this used to be Line 37 on the regular 1040; it's now Line 11).

Does Roth conversion affect Irmaa?

If your income is on the threshold of qualifying for IRMAA treatment, a Roth Conversion could force you to start paying premiums as a percentage of your higher income. There is a two-year look-back that determines IRMAA. So, even if you perform a Roth Conversion in 2019, you may not see the impact until 2021.

How can I reduce my Medicare Part B premiums?

Those premiums are a burden for many seniors, but here's how you can pay less for them.
  1. Sign up for Part B on time. ...
  2. Defer income to avoid a premium surcharge. ...
  3. Pay your premiums directly from your Social Security benefits. ...
  4. Get help from a Medicare Savings Program.

How does income affect Medicare premiums?

Medicare is available to all Americans who are age 65 or older, regardless of income. However, your income can impact how much you pay for coverage. If you make a higher income, you'll pay more for your premiums, even though your Medicare benefits won't change.

Does 401k reduce Magi?

Traditional 401(k) contributions effectively reduce both adjusted gross income (AGI) and modified adjusted gross income (MAGI). ... Roth 401(k) contributions don't reduce either AGI or MAGI, as they are made with after-tax dollars.

Is Social Security included in modified adjusted gross income?

MAGI is adjusted gross income (AGI), determined in the same way as for personal income taxes, plus three types of income that AGI omits: excluded foreign income, tax-exempt interest, and the non-taxable portion of Social Security benefits. ... (Social Security benefits don't count toward these thresholds.)

Is Irmaa tax deductible?

Yes, IRMAA is allowed as a medical deduction on Schedule A, which could come off against your adjusted gross income (AGI). ... These are the amounts your itemized deductions must be higher than to start making a difference in your taxes: $12,000 Single or Married Filing Jointly.

When should I file SSA 44?

You should fill out Form SSA-44 if you experience any life-changing event that reduces your income. Life-changing events that qualify are marriage, divorce, death of a spouse, work stoppage, work reduction, loss of income-producing property, loss of pension income and employer settlement payment.

Is Irmaa adjustment retroactive?

If a change to your IRMAA determination occurs, corrections will be retroactive. If you request an appeal, you must: Ask for an appeal within 60 days. ... You can call 1-800-772-1213 to file your appeal.

Will tax brackets change in 2022?

The tax rates themselves didn't change from 2021 to 2022. There are still seven tax rates in effect for the 2022 tax year: 10%, 12%, 22%, 24%, 32%, 35% and 37%. However, as they are every year, the 2022 tax brackets were adjusted to account for inflation.

Do capital gains count towards Irmaa?

Some examples of what counts as income towards IRMAA are:

Wages, Social Security benefits, Pension/Rental income, Interest, Dividends, distributions from any tax-deferred investment like a Traditional 401(k) or IRA and, again, Capital Gains.