MAGI is your adjusted gross income. It determines whether you qualify for specific benefits. And with Medicare, it determines whether you will pay higher Part B and Part D premiums.
If you have a Medicare or Medicare Advantage plan, and your income is above a specific amount, an income-related monthly adjusted amount (IRMAA) surcharge is added to the standard Medicare Part B and Part D premiums.
Your MAGI from two years prior is used to calculate your IRMAA, and the higher your income, the higher your surcharge. If your income changes, your IRMAA may also change.
When calculating Part B premiums, Medicare will consider whether you must pay a surcharge in addition to the standard premium amount, which in 2025 is $185.
Your tax return from 2023 will be used to determine the surcharge in 2025. The following table shows the income limits and the surcharge that would be added to the standard premium.
| 2023 income, individually filed taxes | 2023 income, married, jointly filed taxes | 2023 income, married, separately filed taxes | 2025 Part B premium |
|---|---|---|---|
| $106,000 or under | $212,000 or under | $106,000 or under | $185 |
| more than $106,000 up to $133,000 | more than $212,000 up to $266,000 | — | $259 |
| more than $133,000 up to $167,000 | more than $266,000 up to $334,000 | — | $370 |
| more than $167,000 up to $200,000 | more than $334,000 up to $400,000 | — | $480.90 |
| more than $200,000 up to $500,000 | more than $400,000 up to $750,000 | more than $106,000 up to $394,000 | $591.90 |
| $500,000 and above | $750,000 and above | $394,000 and above | $628.90 |
Although not all of the information is currently available, there are some projections for 2026 Part B costs based on your 2024 tax return:
| 2024 income, individually filed taxes | 2024 income, married, jointly filed taxes | Projected 2026 Part B premium |
|---|---|---|
| $107,000 or under | $214,000 or under | $186.90 |
| more than $107,000 up to $134,000 | more than $214,000 up to $268,000 | $261.70 |
| more than $134,000 up to $169,000 | more than $268,000 up to $338,000 | $373.80 |
| more than $169,000 up to $202,000 | more than $338,000 up to $404,000 | $485.90 |
| more than $202,000 up to $500,000 | more than $404,000 up to $750,000 | $598.10 |
| $500,000 and above | $750,000 and above | $635.50 |
The same rules apply to Medicare Part D prescription drug plans. In 2025, the Part D national base premium is $36.78 (increasing to $38.99 in 2026), but actual premiums will vary depending on the plan provider. Whatever your monthly premium is, the following amounts will be added, depending on your income:
| 2023 income, individually filed taxes | 2023 income, married, jointly filed taxes | 2023 income, married, separately filed taxes | 2025 Part D premium + projected surcharge |
|---|---|---|---|
| $106,000 or under | $212,000 or under | $106,000 or under | $0.00 + your plan premium |
| more than $106,000 up to $133,000 | more than $212,000 up to $266,000 | — | $13.70 + your plan premium |
| more than $133,000 up to $167,000 | more than $266,000 up to $334,000 | — | $35.30 + your plan premium |
| more than $167,000 up to $200,000 | more than $334,000 up to $400,000 | — | $57.00 + your plan premium |
| more than $200,000 up to $500,000 | more than $400,000 up to $750,000 | more than $106,000 up to $394,000 | $78.60 + your plan premium |
| $500,000 and above | $750,000 and above | $394,000 and above | $85.80 + your plan premium |
There are also projections for Part D costs in 2026, although, as with Part B, not all information is available:
| 2024 individual | Yearly income in 2024: married, filing jointly | 2026 Part D premium + projected surcharge |
|---|---|---|
| $107,000 or under | $214,000 or under | 2026 Part D premium + $0.00 |
| more than $107,000 up to $134,000 | more than $214,000 up to $268,000 | 2026 Part D Premium + $14.50 |
| more than $134,000 up to $169,000 | more than $268,000 up to $338,000 | 2026 Part D Premium + $37.50 |
| more than $169,000 up to $202,000 | more than $338,000 up to $404,000 | 2026 Part D Premium + $60.40 |
| more than $202,000 up to $500,000 | more than $404,000 up to $750,000 | 2026 Part D Premium + $83.30 |
| $500,000 and above | $750,000 and above | 2026 Part D Premium + $91.00 |
If you believe an IRMAA has been incorrectly applied to your premium, you can apply for a reconsideration by calling the Social Security Administration (SSA) or sending them a written notice.
If the reconsideration request is unsuccessful, you can appeal an IRMAA decision within 60 days of receiving an IRMAA determination notice.
Some examples of when you can appeal an IRMAA decision are when the MAGI data that the SSA used to determine the IRMAA is incorrect or if you filed an amended tax return that the SSA missed.
Another reason you may be able to appeal is when you encounter a life changing event that greatly affects your income. There are seven qualifying events, including:
- getting married
- getting a divorce or an annulment
- becoming a widow or a widower
- reducing your working hours
- stopping work
- losing or reducing specific pension types
- losing income from an income-generating property
Filing an IRMAA appeal
The SSA sometimes carries out a new initial determination using updated documentation. If you’re ineligible for a new initial determination, you can appeal the IRMAA decision.
You can contact the SSA to lodge an appeal. Your initial determination notice should have information on how to do this.
If the SSA approves your appeal, your monthly premiums will be corrected. If the SSA rejects your appeal, it will provide steps on how to appeal the denial in a separate hearing.
Your MAGI is used to determine the surcharge you could owe in addition to the standard Medicare Part B and Part D premiums. This surcharge is often referred to as an IRMAA.
IRMAA is based on your MAGI from 2 years prior, so in 2025, Medicare would use tax returns from 2023.
If your income changes, your IRMAA surcharge may also change, and if you disagree with a decision, you can file an appeal with the SSA.