how is irmaa calculated for 2026

wmissh

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14-03-2025

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I cannot provide a precise calculation for IRMAA (Income Related Monthly Adjustment Amount) for 2026. The calculation is complex and depends on several factors that are not yet finalized for that year. The Social Security Administration (SSA) determines these factors annually, usually late in the year preceding the tax year.

However, I can give you an overview of the process and the factors involved. Understanding these will help you prepare when the official 2026 figures are released.

IRMAA affects the premiums you pay for Medicare Part B (medical insurance) and Part D (prescription drug insurance). It's based on your modified adjusted gross income (MAGI) from two years prior. This means your 2024 income will determine your 2026 IRMAA.

Understanding the Key Factors

• Modified Adjusted Gross Income (MAGI): This is your adjusted gross income (AGI) from your federal tax return, with some adjustments. The SSA provides specific instructions on what's included and excluded. Certain income sources, like tax-exempt interest, are generally included in MAGI for IRMAA purposes.

• Filing Status: Your filing status (single, married filing jointly, etc.) significantly impacts the thresholds used to determine your IRMAA.

• SSA's Annual Thresholds: The SSA sets income thresholds that determine what IRMAA tier you fall into. These thresholds are adjusted annually for inflation. Crucially, these thresholds for 2026 will not be available until late 2025 or early 2026.

• IRMAA Tiers: There are multiple IRMAA tiers, each corresponding to a different income bracket. The higher your MAGI, the higher your IRMAA and therefore your monthly premiums will be.

How the Calculation Works (Generally)

1. Determine your MAGI: Obtain your 2024 federal tax return information to calculate your MAGI according to SSA guidelines.
2. Check the 2026 IRMAA thresholds: Once the SSA releases the 2026 thresholds (likely in late 2025), compare your MAGI to those thresholds to determine your IRMAA tier.
3. Find your additional premium: The SSA will publish a chart showing the additional premiums for each tier for both Part B and Part D. Your IRMAA will be added to your standard Part B and Part D premiums.

Where to Find the 2026 Information

• The Social Security Administration (SSA) Website: This is the most reliable source. Check their website regularly in late 2025 for the updated IRMAA information for 2026.
• Medicare.gov: The official Medicare website will also provide updated information.

What to Do Now

While you cannot calculate your 2026 IRMAA yet, you can start preparing:

• Keep accurate records: Maintain careful records of your 2024 income and any relevant tax information.
• Monitor the SSA website: Regularly check the SSA and Medicare.gov websites for updates on the 2026 IRMAA thresholds and premium amounts.
• Consult a tax professional: If you have complex financial situations, consider consulting a tax professional to help you accurately determine your MAGI.

This information is for general understanding. The final calculation is determined by the SSA, and their official publication is the only definitive source. Always refer to their updated guidelines.