Part B costs for those with higher incomes (IRMAA) (2024)

FAQs

How much do high income earners pay for Medicare Part B? ›

A few private insurers reimburse part or all of federal retirees' Medicare Part B premiums, which can sometimes ease the IRMAA sting, too. The largest reimbursem*nts are typically offered by the more expensive plans, Flanagan noted.

If you don't buy Part A when you're first eligible for Medicare (usually when you turn 65), you might pay a penalty. Most people pay the standard Part B monthly premium amount ($174.70 in 2024). Social Security will tell you the exact amount you'll pay for Part B in 2024.

The Medicare IRMAA is based on the income on your tax return two years prior. IRMAA charges apply to eligible Medicare beneficiaries, whether you have Original Medicare or Medicare Advantage. You can appeal the Medicare IRMAA if you think a mistake has been made or your circ*mstances have changed.

You will use Form SSA-44 (Medicare Income Related Monthly Adjustment Amount – Life Changing Event). Complete the required information on the form and submit to a local Social Security office. Go to our website at www.medicaremindset.com/irmaa for more detailed instructions, as well as to download the appeal form.

What is an IRMAA? People with Medicare who earn a high income have to pay an IRMAA, an extra charge on Medicare Parts B and D. The fee kicks in if you make more than $97,000 (going up to $103,000 in 2024) or if you and your spouse collectively earn over $194,000 (going up to $206,000 in 2024).

If you earn more than $103,000 ($206,000 if you're married), you pay higher monthly rates for both Medicare Part B and D. For 2024, your costs for Medicare Parts B and D are based on the income on your 2022 tax return.

Does Social Security count towards Irmaa? ›

This is a common question, and one that is answered incorrectly on several prominent websites. The calculation for IRMAA MAGI (Modified Adjusted Gross Income) includes just the taxable portion of Social Security.

Does IRMAA Apply to Both Spouses? IRMAA applies to both spouses when both are on Medicare. Medicare premiums are charged to each individual beneficiary as there is no “family plan.”

If you are still working and can make tax-deductible contributions to a Traditional IRA or Traditional 401(k), TSP, 403(b), or 457 plan, you can reduce your taxable income and reduce or avoid IRMAA. Consider Charity ...

There are seven reasons you may qualify for an Irmaa refund: death of a spouse; marriage; divorce or annulment; work reduction; work stoppage (such as retirement); loss of income from income-producing property; and loss or reduction of certain pension income.

If you have a higher income, you'll pay an additional premium amount for Medicare Part B and Medicare prescription drug coverage.

If you have higher income, you'll pay an additional premium amount for Medicare Part B and Medicare prescription drug coverage. We call the additional amount the income-related monthly adjustment amount. Here's how it works: Part B helps pay for your doctors' services and outpatient care.

If you're on Medicare or Medicare Advantage and your income rises above a certain threshold, the Social Security Administration adds an extra charge to the standard Plan B or Plan D premiums based on IRMAA, or the Income-Related Monthly Adjustment Amount.

On top of the standard Medicare tax payments, high-income earners pay the Additional Medicare Tax of 0.9%. The IRS has several rules to determine who qualifies based on filing status and income limits. So, married taxpayers filing together have a different income threshold than separate filers.

Medicare Part B premiums are calculated based on a person's modified adjusted gross income (MAGI). For Part B premiums, MAGI is the adjusted gross income an individual reports on line 11 of their federal tax return, plus any tax-exempt interest income, such as municipal bonds (line 2a) earnings.