How to Calculate MAGI for IRMAA: Free MAGI Calculator
If your income is above a certain level, you may pay more for Medicare Part B and Part D.
That extra cost is called IRMAA, and it is based on your income from two years earlier.
MAGI for IRMAA Calculator: Estimate Your Medicare Premium Surcharge
What are IRMAA and MAGI?
IRMAA stands for Income-Related Monthly Adjustment Amount.
It’s an extra amount added to your Medicare Part B and Part D premiums if your income is above certain limits.
For IRMAA purposes, Social Security generally starts with the Adjusted Gross Income, or AGI, on your tax return and adds back tax-exempt interest.
In some situations, other income that was excluded from AGI is added back as well.
The basic formula is:
IRMAA MAGI = AGI + tax-exempt interest + required add-backs
If your MAGI stays below the applicable threshold, you generally pay the standard Medicare Part B premium and your regular Part D plan premium.
Once your MAGI crosses a threshold, your premiums can increase.
What Income Counts Toward IRMAA MAGI?
The easiest way to think about IRMAA MAGI is to start with your AGI.
- Wages and salaries
- Interest income
- Dividends
- Capital gains
- IRA withdrawals
- 401(k) withdrawals
- Roth conversions
- Pension income
- Taxable Social Security benefits
- Rental income
- Business income
- Tax-exempt interest
Other taxable income reported on your tax return can also flow into AGI.
Then you add tax-exempt interest.
That’s important because tax-exempt interest isn’t included in AGI, but Social Security uses it when calculating IRMAA.
For example, suppose your AGI is $105,000 and you received $5,000 of tax-exempt interest from municipal bonds.
Your IRMAA MAGI would generally be $110,000.
That extra $5,000 could matter if you’re close to an IRMAA threshold.
What Is Not Included in IRMAA MAGI?
For example, the nontaxable portion of your Social Security benefits isn’t added back to MAGI. Only the taxable portion that becomes part of AGI is included.
Other items that generally aren’t included can include:
- Loan proceeds
- Gifts received
- Inheritances
- Life insurance death benefits
- Return of your own investment principal
- Roth IRA qualified distributions
- Nontaxable portions of pensions or annuities
- Nontaxable portions of Social Security benefits
- Tax-free municipal bond interest, except that tax-exempt interest is added back for IRMAA
- Money transferred between your own accounts
How to Calculate IRMAA MAGI From Form 1040
To compute IRMAA MAGI from your tax return, follow these steps
Step 1: Find your AGI
On the current Form 1040, AGI is reported on line 11.
Your AGI is calculated after your total income is reduced by applicable adjustments.
Step 2: Find tax-exempt interest
Look at Form 1040, line 2a.
This may include interest from municipal bonds and other tax-exempt investments.
Step 3: Add the two numbers
Take your AGI and add your tax-exempt interest.
For many taxpayers, that’s the basic IRMAA MAGI calculation.
Step 4: Check for special add-backs
If you had certain types of excluded income, such as foreign earned income or qualifying education-related U.S. savings bond interest, check whether the IRMAA rules require that amount to be added back.
Step 5: Compare your MAGI with the IRMAA brackets
Once you have your MAGI, compare it with the threshold for your filing status.
That’s what determines whether you pay the standard Medicare premiums or an IRMAA surcharge.
IRMAA MAGI Examples
Suppose your tax return shows the following:
| Form 1040 Item | Amount |
|---|---|
| Wages | $60,000 |
| Tax-exempt interest | $1,200 |
| Taxable interest | $500 |
| Dividends | $800 |
| Taxable IRA/pension distributions | $8,000 |
| Taxable Social Security | $6,000 |
| Capital gains | $2,000 |
| Other income | $0 |
| Total income | $78,300 |
| Adjustments | -$2,300 |
| AGI | $76,000 |
Your AGI is $76,000.
But you also have $1,200 of tax-exempt interest.
So:
$76,000 AGI + $1,200 tax-exempt interest = $77,200 IRMAA MAGI
At $77,200, this taxpayer would be below the first IRMAA threshold for a single filer in the 2026 premium year.
The same basic process works whether your income comes from wages, retirement accounts, investments, or Social Security.
2026 IRMAA Brackets and Medicare Premiums
For 2026, Medicare uses your 2024 MAGI to determine whether you pay an IRMAA surcharge.
The standard Part B premium is $202.90 per month. Higher-income beneficiaries pay additional amounts based on their MAGI.
Single, Head of Household and Qualifying Widow(er)
Married filing jointly
Married couples who file separately have different rules.
If you lived with your spouse for at least part of the year, the IRMAA brackets are much less favorable.
For 2026, a married-filing-separately taxpayer with MAGI above $109,000 can move directly into a much higher Part B premium tier.
Which Tax Year Does IRMAA Use?
IRMAA uses your Modified Adjusted Gross Income (MAGI) from your federal tax return two years before the Medicare premium year.
| Medicare Premium Year | Tax Return Generally Used |
|---|---|
| 2026 | 2024 tax return |
| 2027 | 2025 tax return |
| 2028 | 2026 tax return |
What if Your Income Dropped After You Retired?
| Year | Situation | IRMAA income |
|---|---|---|
| 2024 | Still working; income = $250,000 | Older income |
| 2025 | Retire; income falls to $100,000 | Income drops |
| 2026 | IRMAA would normally use 2024 income | Could initially be high |
| 2026 | You request an IRMAA reduction | SSA can consider your more recent lower income |
| Result | Lower income qualifies for a lower bracket | IRMAA may decrease or disappear |
If retirement or another qualifying life-changing event significantly reduces your income, you may request that Social Security use a more recent tax year to determine your IRMAA, which could lower or eliminate the additional Medicare Part B and Part D charges.
But you may be able to ask Social Security to reconsider your IRMAA if you’ve experienced a qualifying life-changing event.
Life-changing situations such as:
- Marriage
- Divorce
- Death of a spouse
- Loss of a pension
- Loss or reduction of income from work
- Certain other qualifying events
You can request an IRMAA reconsideration using Form SSA-44 and provide documentation showing the change in your circumstances.
IRMAA and MAGI FAQ
You may ask SSA to recalculate IRMAA after certain life-changing events that permanently reduce your income.
Your federal tax filing status determines which IRMAA income thresholds apply to you.
Trust or estate income generally affects IRMAA when it is distributed to you and included in your federal income.
No, a properly completed tax-free rollover generally does not increase your MAGI.
Yes, a taxable Roth conversion increases your MAGI and can raise your IRMAA surcharge.
Yes, taxable capital gains generally count toward the MAGI used to determine IRMAA.
Only the taxable portion of Social Security benefits included in your federal AGI generally counts toward IRMAA MAGI.
Yes, IRMAA can apply to Medicare Advantage plans because it is tied to Medicare Part B and Part D premiums.
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