1. What is MAGI for Medicare?

Modified Adjusted Gross Income (MAGI) is a variation of your Adjusted Gross Income (AGI) that's used to determine Medicare premiums and eligibility for certain benefits. It includes your AGI plus specific tax-exempt income items.

2. How MAGI is Calculated

The standard MAGI formula for Medicare purposes:

Where:

• AGI - Your Adjusted Gross Income from IRS Form 1040
• Tax-Exempt Interest - Interest from municipal bonds or other tax-exempt sources
• Non-Taxable Social Security - The portion of Social Security benefits not included in AGI
• Foreign Income - Income earned abroad that was excluded from taxation

3. Why MAGI Matters for Medicare

Details: Medicare uses MAGI to determine your Income-Related Monthly Adjustment Amount (IRMAA) for Part B and Part D premiums. Higher MAGI can result in higher Medicare premiums.

4. Using This Calculator

Tips: Enter your AGI from your tax return plus any applicable additional income items. All values should be annual amounts from the same tax year.

5. Frequently Asked Questions (FAQ)

Q1: Which tax year's MAGI does Medicare use?
A: Medicare typically uses your MAGI from two years prior (e.g., 2023 premiums based on 2021 MAGI).

Q2: Are all Social Security benefits included?
A: Only the non-taxable portion (the part not included in your AGI) is added back for MAGI.

Q3: What if I had a life-changing event?
A: You may request an adjustment if you've had certain events (marriage, divorce, death of spouse, etc.) that reduced your income.

Q4: Does MAGI affect Medicare Advantage plans?
A: No, MAGI only affects Original Medicare (Part B and Part D) premiums, not Medicare Advantage plan costs.

Q5: Where can I find these amounts on my tax return?
A: AGI is on line 11 of Form 1040 (2022), tax-exempt interest on line 2a, Social Security on lines 6a-6b, and foreign income exclusion on Form 2555.