IRMAA (Income-Related Monthly Adjustment Amount) Calculator
Estimate your potential IRMAA surcharges for Medicare Parts B and D.
Understanding IRMAA
The Income-Related Monthly Adjustment Amount (IRMAA) is a surcharge that individuals with higher incomes may have to pay for Medicare Parts B and D. The Centers for Medicare & Medicaid Services (CMS) uses your income from up to three years prior (known as the "look-back period") to determine if you are subject to IRMAA. This calculator provides an estimate based on your Modified Adjusted Gross Income (MAGI) and filing status.
How is IRMAA Calculated?
IRMAA is calculated by comparing your MAGI to specific income thresholds set by CMS for each tax year. These thresholds are different for individuals filing as "Individual" (or Married Filing Separately, except under specific circumstances) and those filing as "Married, Filing Jointly." The calculation involves determining which income bracket your MAGI falls into and applying a specific percentage surcharge to the standard Medicare Part B and Part D premiums.
The Surcharges are Applied in Tiers:
- Tier 1: Slightly above the standard premium.
- Tier 2: A higher income level with a larger surcharge.
- Tier 3: An even higher income level with a significant surcharge.
- Tier 4: The highest income level with the maximum surcharge.
- Tier 5: The highest income level with the highest surcharge.
Medicare Part B IRMAA Thresholds and Surcharges
The following tables illustrate the thresholds and surcharges for Medicare Part B premiums. Note: The income used is typically from two years prior. For example, your 2022 MAGI determines your 2024 Part B IRMAA.
For Individuals Filing as Individual (or Married Filing Separately)
| MAGI (from 2 years prior) | Monthly Premium | Monthly Surcharge | Total Monthly Premium |
|---|---|---|---|
| Less than or equal to $97,000 | Standard Premium ($174.70 in 2024) | $0.00 | $174.70 |
| $97,001 to $122,000 | Standard Premium + 25% | + $43.68 | $218.38 |
| $122,001 to $153,000 | Standard Premium + 50% | + $87.35 | $262.05 |
| $153,001 to $184,000 | Standard Premium + 75% | + $131.03 | $305.73 |
| $184,001 to $771,001 | Standard Premium + 100% (Highest) | + $174.70 | $349.40 |
| Greater than $771,001 | Standard Premium + 130% (Highest) | + $227.11 | $401.81 |
For Married Individuals Filing Jointly
| MAGI (from 2 years prior) | Monthly Premium | Monthly Surcharge | Total Monthly Premium |
|---|---|---|---|
| Less than or equal to $194,000 | Standard Premium ($174.70 in 2024) | $0.00 | $174.70 |
| $194,001 to $244,000 | Standard Premium + 25% | + $43.68 | $218.38 |
| $244,001 to $306,000 | Standard Premium + 50% | + $87.35 | $262.05 |
| $306,001 to $368,000 | Standard Premium + 75% | + $131.03 | $305.73 |
| $368,001 to $1,542,001 | Standard Premium + 100% (Highest) | + $174.70 | $349.40 |
| Greater than $1,542,001 | Standard Premium + 130% (Highest) | + $227.11 | $401.81 |
Medicare Part D IRMAA Thresholds and Surcharges
The calculation for Part D premiums is similar but uses slightly different thresholds and applies to the national base beneficiary premium for Part D.
For Individuals Filing as Individual (or Married Filing Separately)
| MAGI (from 2 years prior) | Monthly Premium | Monthly Surcharge | Total Monthly Premium |
|---|---|---|---|
| Less than or equal to $97,000 | National Base Beneficiary Premium ($34.70 in 2024) | $0.00 | $34.70 |
| $97,001 to $122,000 | Base Premium + 12.5% | + $4.34 | $39.04 |
| $122,001 to $153,000 | Base Premium + 25% | + $8.68 | $43.38 |
| $153,001 to $184,000 | Base Premium + 37.5% | + $13.01 | $47.71 |
| $184,001 to $771,001 | Base Premium + 50% (Highest) | + $17.35 | $52.05 |
| Greater than $771,001 | Base Premium + 62.5% (Highest) | + $21.69 | $56.39 |
For Married Individuals Filing Jointly
| MAGI (from 2 years prior) | Monthly Premium | Monthly Surcharge | Total Monthly Premium |
|---|---|---|---|
| Less than or equal to $194,000 | National Base Beneficiary Premium ($34.70 in 2024) | $0.00 | $34.70 |
| $194,001 to $244,000 | Base Premium + 12.5% | + $4.34 | $39.04 |
| $244,001 to $306,000 | Base Premium + 25% | + $8.68 | $43.38 |
| $306,001 to $368,000 | Base Premium + 37.5% | + $13.01 | $47.71 |
| $368,001 to $1,542,001 | Base Premium + 50% (Highest) | + $17.35 | $52.05 |
| Greater than $1,542,001 | Base Premium + 62.5% (Highest) | + $21.69 | $56.39 |
Important Considerations
- Look-Back Period: CMS uses your tax return from up to three years prior. If you received Social Security benefits, they may use your most recent benefit statement.
- Changes in Income: If your income has decreased significantly due to events like job loss, divorce, marriage, or death of a spouse, you may be able to request a recalculation of your IRMAA. This is done by submitting Form SSA-44 to the Social Security Administration.
- Official Information: This calculator provides an estimate only. For definitive information, consult the Social Security Administration (SSA) or Medicare.gov.
- Premium Amounts: The standard premium amounts used in this calculator are for the specified year and are subject to change annually.
Use Cases
This calculator is useful for:
- Retirees: Planning for healthcare costs during retirement.
- Individuals nearing Medicare Eligibility: Understanding potential future costs.
- Financial Planners: Assisting clients with retirement and healthcare cost projections.
- Anyone curious about their Medicare premium: Gaining insight into how income affects healthcare expenses.