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 MAGI Calculation Works

The MAGI formula for IRMAA purposes is:

Where:

• AGI — Adjusted Gross Income from your tax return
• Tax-Exempt Interest — Interest from municipal bonds and other tax-exempt investments
• Non-Taxable Social Security — The portion of Social Security benefits not included in AGI

Note: The IRS uses MAGI from two years prior (e.g., 2022 MAGI for 2024 IRMAA determination).

3. Importance of MAGI Calculation

Details: MAGI determines if you'll pay higher Medicare premiums. For 2024, IRMAA surcharges begin at MAGI of $103,000 (individual) or $206,000 (married filing jointly).

4. Using the Calculator

Tips: Enter all amounts in dollars. Use actual tax return values for most accurate results. The calculator sums all components to give your total MAGI.

5. Frequently Asked Questions (FAQ)

Q1: Where do I find these amounts 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 calculated from SSA-1099.

Q2: Does MAGI include capital gains?
A: Yes, capital gains are included in AGI, which is part of MAGI.

Q3: How often is IRMAA reassessed?
A: Annually, based on your most recent available tax return (typically 2 years prior).

Q4: Can I appeal an IRMAA determination?
A: Yes, if you've had a life-changing event (e.g., retirement, divorce) that reduced your income.

Q5: Are there other components to MAGI?
A: For most Medicare purposes, this is the complete formula, but some programs may include other additions.