Your most recent Federal income tax returns are used to determine whether you pay an income-related monthly adjustment amount or
IRMAA - however, this means that your current IRMAA is determined by your income from two years ago.
For example, your 2024 Income Related Monthly Adjustment Amount (IRMAA) is based on the most recent tax return that the IRS provides to the Social Security Administration
(SSA) and in general, the IRS will report the financial information provides on
your 2022 federal tax returns that were filed in 2023.
However, in some cases the SSA determined your IRMAA using earlier tax returns -- for
instance, your 2024 IRMAA may be determined by 2021 federal tax returns that were filed
in 2022 if the IRS only provided the SSA
.
As noted by the Social Security Administration:
To determine if you will pay higher Medicare Part B and Medicare Part D premiums, Social Security uses the most recent Federal tax return that the IRS provides.
If you must pay higher premiums, the Social Security Administration uses a sliding scale to make the adjustments. bases the sliding scale on your modified adjusted gross income (
MAGI).
Your
MAGI is the total of your adjusted gross income and tax-exempt interest income.
If you file your taxes as “married,
filing jointly” and your MAGI is greater than $206,000, you need to pay
higher premiums for your Part B and Medicare prescription drug coverage.
If you file your taxes using a different status and your MAGI is greater than $103,000, you also need to pay higher premiums.
If you must pay higher premiums, the
Social Security Administration will send you a letter with your premium
amount(s) and the reason.
If you have Medicare Part B and Medicare prescription drug coverage, you will pay higher premiums for both Part B and Part D.
If you have only one - Medicare Part B or Medicare Part D prescription
drug coverage - you will pay an income-related monthly adjustment amount
only on the benefit you have.
If you decide to enroll in the other program later in the same year and
you already are paying an income-related monthly adjustment amount, the
Social Security Administration will apply an adjustment automatically to
the other program when you enroll. In this case, the Social Security
Administration will not send you another letter explaining how the
Social Security Administration made this determination.
Remember, if your income is not greater than the limits described above, this law does not apply to you.
Example:
2024 Medicare Part D IRMAA information:
2024 IRMAA: Slight increase in Medicare Part D IRMAA payments for some along with changes in the IRMAA brackets due to annual inflation adjustments. (
Q1News.com/1023)
For more information about IRMAA and current IRMAA limits see our Latest Medicare News:
q1medicare.com/news/category/IRMAA---for-Higher-Incomes/16
Remember:
The amount you pay can change each year depending on your income. If you
have to pay a higher amount for your Part B premium and you disagree,
you can appeal your IRMAA.