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, y
our 2019 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 2017 federal tax returns that were filed in 2018.
However, in some cases the SSA determined your IRMAA using earlier tax returns --- for
instance, your 2019 IRMAA may be determined by 2016 federal tax returns that were filed
in 2017 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
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 $170,000, 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 $85,000, 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.
2019 Medicare Part D IRMAA information: 2019 IRMAA: 5% decrease in Medicare Part D IRMAA for individual earning incomes between $85,000 - $500,000 and couples earning $170,000 - $750,000.
For more information about IRMAA and current IRMAA limits see our Latest Medicare News (or Blog):
https://q1medicare.com/q1group/ MedicareAdvantagePartD/Blog.php? cat=IRMAA---for-Higher-Incomes &category_id=16
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