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Medicare Premium Calculation:
IRMAA is based on Modified Adjusted Gross Income (MAGI)
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The Medicare Premium Calculator helps estimate your total monthly Medicare Part B premium, which consists of a standard base premium plus an Income-Related Monthly Adjustment Amount (IRMAA) if your income exceeds certain thresholds.
The calculator uses the following formula:
Where:
Explanation: The IRMAA surcharge is determined by comparing your MAGI to income thresholds that vary based on your tax filing status.
Details: IRMAA (Income-Related Monthly Adjustment Amount) is a surcharge added to your Medicare Part B and Part D premiums if your income exceeds certain limits. It's based on your tax return from two years prior (e.g., 2024 premiums are based on 2022 income).
Tips: Enter your base Medicare premium (default is current standard amount), your Modified Adjusted Gross Income (MAGI), and select your tax filing status. The calculator will determine if you owe an IRMAA surcharge and your total monthly premium.
Q1: What counts as Modified Adjusted Gross Income (MAGI)?
A: MAGI is your Adjusted Gross Income plus tax-exempt interest income. It's the amount shown on line 11 of your IRS Form 1040 plus any tax-exempt interest (line 2a).
Q2: How often are IRMAA amounts updated?
A: IRMAA thresholds and amounts are adjusted annually for inflation. The calculator uses current year values.
Q3: Can I appeal my IRMAA determination?
A: Yes, if you've had a life-changing event that reduced your income (retirement, divorce, etc.), you can file an appeal with Social Security.
Q4: Does this calculator include Medicare Part D premiums?
A: No, this calculates only Part B premiums. Part D has separate IRMAA calculations.
Q5: When are IRMAA determinations made?
A: Medicare uses your tax return from two years prior. Your 2024 premiums are based on your 2022 tax return.