What is the IRMAA Cutoff for 2023?

The income thresholds that trigger IRMAA surcharges for Medicare Part B and Part D premiums increased significantly for 2023. This means more Medicare beneficiaries will pay extra premiums based on their income.

What is IRMAA?

IRMAA stands for Income Related Monthly Adjustment Amount. It is an extra premium charged to Medicare Part B and Part D enrollees who have high incomes.

IRMAA premiums are added on top of the standard premiums for Part B and Part D. So beneficiaries with high incomes pay more for their Medicare coverage.

How IRMAA Works

Here’s a quick overview of how IRMAA premiums are calculated:

• Your prior year’s tax return determines your income for IRMAA purposes.

• If your income exceeds threshold amounts, you’ll pay an extra IRMAA premium.

• There are 5 income brackets, each with higher IRMAA premiums.

• The top bracket starts at $500,000 for an individual.

• IRMAA applies to both Part B and Part D, so high earners pay more for both.

2023 IRMAA Income Cutoffs

For 2023, here are the income thresholds that trigger IRMAA premiums:

• Single Filers:

  • $97,000 or below – No IRMAA

  • $97,000 to $123,000 – IRMAA applies

  • $123,000 to $153,000 – Higher IRMAA

  • $153,000 to $183,000 – Even higher IRMAA

  • $183,000 to $500,000 – Highest IRMAA except top bracket

  • Above $500,000 – Top IRMAA bracket

• Married Joint Filers:

  • $194,000 or below – No IRMAA

  • $194,000 to $246,000 – IRMAA applies

  • $246,000 to $306,000 – Higher IRMAA

  • $306,000 to $366,000 – Even higher IRMAA

  • $366,000 to $750,000 – Highest IRMAA except top bracket

  • Above $750,000 – Top IRMAA bracket

So the IRMAA cutoff for an individual in 2023 is $97,000. If your income exceeded that based on your 2021 tax return, you’ll pay extra IRMAA premiums.

For married couples filing jointly, the cutoff is $194,000.

Comparing 2022 and 2023 Cutoffs

The IRMAA income thresholds increased significantly from 2022 to 2023:

• In 2022, the cutoff for a single filer was $91,000

• In 2023, the new cutoff for a single filer is $97,000

• That’s a $6,000 increase in just one year

• For couples, the cutoff went from $182,000 to $194,000

So the income cutoffs are steadily rising each year, exposing more Medicare enrollees to IRMAA premiums.

IRMAA Brackets For 2024

Looking ahead to 2024, the IRMAA income thresholds are increasing again:

• For single filers, the 2024 cutoff will be $103,000

• For joint filers, the 2024 cutoff will be $206,000

So based on your 2022 tax return, you’ll pay IRMAA premiums in 2024 if your income exceeded those new thresholds.

The Bottom Line

IRMAA cutoffs are climbing rapidly, bringing higher-income Medicare beneficiaries into the IRMAA brackets each year.

If your income exceeded $97,000 as a single filer (or $194,000 on a joint return) in 2021, you’ll pay extra IRMAA premiums for your Medicare in 2023.

For 2024, the cutoffs are even higher at $103,000 and $206,000. So review your income carefully as IRMAA catches more people each year.