Understanding Modified Adjusted Gross Income (MAGI) for IRMAA

Medicare, the U.S. government’s health insurance program for individuals aged 65 and older, is a critical safety net for millions of Americans. To ensure that Medicare remains sustainable, the government adjusts premiums based on beneficiaries’ income levels through a surcharge known as the Income-Related Monthly Adjustment Amount (IRMAA). This surcharge is calculated using a metric called Modified Adjusted Gross Income (MAGI).

What is MAGI?

MAGI is a measure of an individual’s income that is used to determine eligibility for certain government programs, including IRMAA. It is calculated by taking the individual’s Adjusted Gross Income (AGI), as reported on line 11 of the IRS Form 1040, and adding any tax-exempt interest income, as reported on line 2a of the same form.


The MAGI thresholds for IRMAA are adjusted annually and vary depending on the individual’s filing status. For 2024, the thresholds are as follows:

  • Married filing jointly: $206,000
  • All other filing statuses: $103,000

Individuals with MAGIs above these thresholds are subject to IRMAA surcharges on their Medicare Part B and Part D premiums. The surcharge amount is determined based on a sliding scale, with higher MAGIs resulting in higher surcharges.

Calculating MAGI

To calculate your MAGI, follow these steps:

  1. Obtain your IRS Form 1040.
  2. Locate line 11, which shows your Adjusted Gross Income (AGI).
  3. Locate line 2a, which shows your tax-exempt interest income.
  4. Add the amounts from lines 11 and 2a.

The resulting amount is your MAGI.


Let’s say you are married and filing jointly. Your AGI for 2022 is $190,000, and you have $5,000 in tax-exempt interest income. Your MAGI would be calculated as follows:

MAGI = AGI + Tax-exempt interest incomeMAGI = $190,000 + $5,000MAGI = $195,000

Since your MAGI is above the threshold of $206,000 for married couples filing jointly, you would be subject to IRMAA surcharges on your Medicare Part B and Part D premiums.

Understanding MAGI is crucial for determining your eligibility for IRMAA surcharges on Medicare premiums. By accurately calculating your MAGI, you can ensure that you are paying the correct amount for your Medicare coverage. If you have any questions or concerns about your MAGI or IRMAA surcharges, it is advisable to contact the Social Security Administration (SSA) or a qualified financial advisor.

What is Modified Adjusted Gross Income, or MAGI?


How do I calculate my modified adjusted gross income?

Your MAGI (modified adjusted gross income) is your AGI plus certain deductions you must “add back.” These deductions include IRA contributions, student loan interest, one-half of self-employment tax, qualified tuition expenses, and more.

What does Medicare consider modified adjusted gross income?

MAGI is adjusted gross income (AGI) plus these, if any: untaxed foreign income, non-taxable Social Security benefits, and tax-exempt interest. For many people, MAGI is identical or very close to adjusted gross income. MAGI doesn’t include Supplemental Security Income (SSI).

What income is included in Irmaa calculation?

In the IRMAA calculation, it includes all taxable income plus tax-exempt interest and Social Security benefits that are taxed.

What is the difference between adjusted gross income and modified adjusted gross income?

Modified Adjusted Gross Income (MAGI) in the simplest terms is your Adjusted Gross Income (AGI) plus a few items — like exempt or excluded income and certain deductions. The IRS uses your MAGI to determine your eligibility for certain deductions, credits and retirement plans.

What is irmaa Magi (modified adjusted gross income)?

The calculation for IRMAA MAGI (Modified Adjusted Gross Income) includes just the taxable portion of Social Security. This comes from the Social Security Handbook here, which states: “Modified Adjusted Gross Income is the sum of: AGI, and total income, is just based on the taxable portion of Social Security:

What determines the irmaa I pay in 2023?

The federal government determines if you’re required to pay an IRMAA by looking at your tax returns from two years ago . The income used to determine IRMAA is your **Modified Adjusted Gross

What are income-related monthly adjustment amounts (irmaas)?

Understanding the concept of income-related monthly adjustment amounts (IRMAAs) is crucial for anyone navigating the Medicare system. In simple terms, an IRMAA is an extra charge added to your monthly Medicare Part B (medical insurance) and Part D (prescription drug coverage) premiums if your income is above a certain threshold.

What income is used to determine irmaa?

The income used to determine IRMAA is a form of Modified Adjusted Gross Income (MAGI), but it’s specific to Medicare. The Modified Adjusted Gross Income is different from your Adjusted Gross Income, because some people have additional income sources that have to be added to their AGI in order to determine their IRMAA-specific MAGI.

Leave a Comment