1. What is MAGI for IRMAA?

Modified Adjusted Gross Income (MAGI) is used to determine Income-Related Monthly Adjustment Amounts (IRMAA) for Medicare Part B and Part D premiums. It includes your AGI plus tax-exempt interest income and non-taxable Social Security benefits.

2. How Does the Calculator Work?

The calculator uses the MAGI formula:

Where:

• AGI — Adjusted Gross Income from your tax return
• Tax-Exempt Interest — Interest from municipal bonds or other tax-exempt sources
• Non-Taxable Social Security — Portion of Social Security benefits not included in AGI

Explanation: The IRS uses this MAGI calculation to determine if you'll pay higher Medicare premiums based on your income.

3. Importance of MAGI Calculation

Details: Accurate MAGI calculation helps predict Medicare costs as IRMAA surcharges apply at specific MAGI thresholds, potentially increasing Part B and Part D premiums significantly.

4. Using the Calculator

Tips: Enter dollar amounts without commas. Use numbers from your most recent tax return. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Where do I find these numbers on my tax return?
A: AGI is on line 11 of Form 1040. Tax-exempt interest is on line 2a. Non-taxable Social Security is the difference between lines 6a and 6b.

Q2: What MAGI triggers IRMAA?
A: For 2023, IRMAA starts at $97,000 for single filers and $194,000 for joint filers, with multiple tiers above these amounts.

Q3: Is MAGI the same for Medicare as for ACA?
A: No, MAGI definitions differ between Medicare and Affordable Care Act calculations.

Q4: How often is MAGI reassessed for IRMAA?
A: Medicare uses MAGI from your tax return two years prior (e.g., 2021 taxes determine 2023 IRMAA).

Q5: Can I appeal an IRMAA determination?
A: Yes, if you've had a life-changing event that reduced your income (retirement, divorce, etc.), you can file Form SSA-44.