1. What is a MAGI Calculator for IRMAA?

Definition: This calculator determines your Modified Adjusted Gross Income (MAGI) which is used to calculate Income-Related Monthly Adjustment Amount (IRMAA) for Medicare.

Purpose: It helps Medicare beneficiaries estimate their potential IRMAA surcharges based on their income.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( \text{MAGI} \) — Modified Adjusted Gross Income (USD)
• \( \text{AGI} \) — Adjusted Gross Income from your tax return (USD)
• \( \text{Tax-Exempt Interest} \) — Interest from tax-exempt bonds/municipalities (USD)

Explanation: The IRS uses your MAGI from two years prior to determine if you'll pay higher Medicare premiums.

3. Importance of MAGI Calculation

Details: Accurate MAGI calculation helps predict potential IRMAA surcharges that can significantly increase your Medicare Part B and D premiums.

4. Using the Calculator

Tips: Enter your AGI from line 11 of your Form 1040 and any tax-exempt interest from line 2a. Both values must be ≥ 0.

5. Frequently Asked Questions (FAQ)

Q1: Why is MAGI important for Medicare?
A: MAGI determines if you'll pay IRMAA surcharges, which can add hundreds to your monthly Medicare premiums.

Q2: What year's income does Medicare use?
A: Medicare uses your MAGI from two years prior (e.g., 2023 premiums based on 2021 MAGI).

Q3: What else is included in MAGI for IRMAA?
A: For most people, it's just AGI plus tax-exempt interest, but some deductions may need to be added back.

Q4: Where can I find my tax-exempt interest?
A: Look on line 2a of your Form 1040 or your 1099-INT forms from municipal bond investments.

Q5: Can I appeal my IRMAA determination?
A: Yes, if you've had a life-changing event that reduced your income, you can file Form SSA-44.