--- title: "Does My Income Affect My Medicare Premiums? IRMAA Explained | Medicare Blog" description: "If your income exceeds $106,000 (single) or $212,000 (married), you'll pay higher Medicare premiums. Here's how IRMAA works and how to reduce it." lang: en json-ld: | [ { "@context": "https://schema.org", "@type": "Article", "@id": "https://dalton-insuranceagency.com/blog/does-income-affect-medicare-premiums#article", "mainEntityOfPage": { "@type": "WebPage", "@id": "https://dalton-insuranceagency.com/blog/does-income-affect-medicare-premiums" }, "headline": "Does My Income Affect My Medicare Premiums? IRMAA Explained", "alternativeHeadline": "Does My Income Affect My Medicare Premiums? IRMAA Explained", "description": "If your income exceeds $106,000 (single) or $212,000 (married), you'll pay higher Medicare premiums. Here's how IRMAA works and how to reduce it.", "image": [ "https://dalton-insuranceagency.com/favicon-dia-preview.png" ], "author": { "@type": "Person", "name": "Tyler Dalton", "jobTitle": "Licensed Medicare Advisor", "telephone": "+1-334-489-3624", "url": "https://dalton-insuranceagency.com/tyler-dalton-author", "affiliation": { "@type": "Organization", "name": "Dalton Insurance Agency" } }, "publisher": { "@type": "Organization", "name": "Dalton Insurance Agency", "logo": { "@type": "ImageObject", "url": "https://dalton-insuranceagency.com/favicon-dia-preview.png" }, "url": "https://dalton-insuranceagency.com" }, "datePublished": "2026-03-06T00:00:00+00:00", "dateModified": "2026-03-09T15:24:14.30205+00:00", "articleSection": "Medicare Costs", "keywords": "Medicare Costs, Medicare, Annual Enrollment Period, Medicare Advantage, Alabama", "inLanguage": "en", "wordCount": 761, "articleBody": "\nUpdated for 2026. Yes — if your income exceeds certain thresholds, you pay an Income-Related Monthly Adjustment Amount (IRMAA) surcharge on top of standard Part B and Part D premiums. IRMAA is based on your tax return from 2 years ago and can add hundreds per month to your Medicare costs. Here's everything you need to know about how it works, the 2026 brackets, and how to reduce or appeal IRMAA.\n\nWhat Is IRMAA and How Does It Work?\nIRMAA stands for Income-Related Monthly Adjustment Amount. 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IRMAA Explained", "item": "https://dalton-insuranceagency.com/blog/does-income-affect-medicare-premiums" } ] } ] --- [Call Now: (334) 489-3624 ](tel:13344893624)Free Medicare Consultation Free Consult [ Dalton Insurance Medicare & Wealth Advisors ](/) - [Home](/) - Medicare - Retirement & Wealth - Resources - [About Us](/about) [(334) 489-3624](tel:13344893624)[Book Appointment](/appointments) 1. [Home ](/) 2. [Blog](/blog) 3. [Medicare Costs]() 4. Does My Income Affect My Medicare Premiums? IRMAA Explained [Back to Blog](/blog) March 6, 2026 9 min read Tyler Dalton # Does My Income Affect My Medicare Premiums? IRMAA Explained If your income exceeds $106,000 (single) or $212,000 (married), you'll pay higher Medicare premiums. Here's how IRMAA works and how to reduce it. Share this article [Facebook](https://www.facebook.com/sharer/sharer.php?u=https%3A%2F%2Fdalton-insuranceagency.com%2Fblog%2Fdoes-income-affect-medicare-premiums)[Pinterest](https://pinterest.com/pin/create/button/?url=https%3A%2F%2Fdalton-insuranceagency.com%2Fblog%2Fdoes-income-affect-medicare-premiums&description=Does%20My%20Income%20Affect%20My%20Medicare%20Premiums%3F%20IRMAA%20Explained)[Text](sms:?body=Does%20My%20Income%20Affect%20My%20Medicare%20Premiums%3F%20IRMAA%20Explained%0Ahttps%3A%2F%2Fdalton-insuranceagency.com%2Fblog%2Fdoes-income-affect-medicare-premiums)[Email](mailto:?subject=Does%20My%20Income%20Affect%20My%20Medicare%20Premiums%3F%20IRMAA%20Explained&body=I%20thought%20you%20might%20find%20this%20helpful%3A%20https%3A%2F%2Fdalton-insuranceagency.com%2Fblog%2Fdoes-income-affect-medicare-premiums)Copy Link[LinkedIn](https://www.linkedin.com/sharing/share-offsite/?url=https%3A%2F%2Fdalton-insuranceagency.com%2Fblog%2Fdoes-income-affect-medicare-premiums)[](https://twitter.com/intent/tweet?url=https%3A%2F%2Fdalton-insuranceagency.com%2Fblog%2Fdoes-income-affect-medicare-premiums&text=Does%20My%20Income%20Affect%20My%20Medicare%20Premiums%3F%20IRMAA%20Explained) **Updated for 2026.** Yes — if your income exceeds certain thresholds, you pay an Income-Related Monthly Adjustment Amount (IRMAA) surcharge on top of standard Part B and Part D premiums. IRMAA is based on your tax return from 2 years ago and can add hundreds per month to your Medicare costs. Here's everything you need to know about how it works, the 2026 brackets, and how to reduce or appeal IRMAA. ## What Is IRMAA and How Does It Work? IRMAA stands for **Income-Related Monthly Adjustment Amount**. It's an extra charge added to your Medicare Part B and Part D premiums if your modified adjusted gross income (MAGI) exceeds specific thresholds. Social Security uses your tax return from **2 years prior** — so your 2024 income determines your 2026 IRMAA. IRMAA affects approximately **7% of Medicare beneficiaries**. If you're in this group, the surcharge is automatically added to your Part B premium and deducted from Social Security. ## 2026 IRMAA Income Brackets Single Filer MAGI Married Filing Jointly Part B Monthly Premium Part D Surcharge ≤ $106,000 ≤ $212,000 $185.00 (standard) $0 $106,001–$133,500 $212,001–$267,000 $259.00 $13.70 $133,501–$167,000 $267,001–$334,000 $370.00 $35.30 $167,001–$200,000 $334,001–$400,000 $480.90 $57.00 $200,001–$500,000 $400,001–$750,000 $591.90 $78.60 \> $500,000 \> $750,000 $628.90 $85.80 ## What Counts as Income for IRMAA? IRMAA uses your **Modified Adjusted Gross Income (MAGI)**, which includes: - Wages, salaries, tips - Social Security benefits (taxable portion) - Pension and retirement account withdrawals (401k, IRA, 403b) - Capital gains from selling investments, property, or business assets - Rental income - Interest and dividends - Business income - Tax-exempt interest (municipal bonds — yes, this counts!) A common surprise: **tax-exempt municipal bond interest** is added back for IRMAA calculations even though it's not taxed. Similarly, a one-time event like selling a home or business can push you into a higher IRMAA bracket unexpectedly. ## How to Appeal IRMAA: Life-Changing Events If your income has decreased due to a **qualifying life-changing event**, you can request that Social Security use a more recent year's income by filing **Form SSA-44**. ### Qualifying Life-Changing Events - Marriage, divorce, or death of a spouse - Work stoppage or reduction (retirement) - Loss of income-producing property (natural disaster, involuntary) - Loss of pension income - Employer settlement payment (as a result of employer's closure or bankruptcy) **Important:** Voluntary actions like selling investments or taking a large IRA withdrawal do NOT qualify for an appeal. The income change must be due to one of the specific life events listed above. ## 5 Strategies to Reduce IRMAA 1. **Roth conversions before 65:** Convert traditional IRA funds to Roth IRA before Medicare enrollment. Roth withdrawals don't count toward MAGI. 2. **Manage capital gains timing:** Spread large asset sales across multiple tax years to avoid spiking above IRMAA thresholds. 3. **Qualified Charitable Distributions:** After 70½, donate directly from your IRA to charity (up to $105,000/year in 2026). QCDs reduce your taxable income without affecting your standard deduction. 4. **Tax-loss harvesting:** Offset capital gains with investment losses to keep MAGI below thresholds. 5. **Work with a tax advisor:** IRMAA planning should be part of your overall retirement tax strategy, ideally starting 2-3 years before Medicare eligibility. Use our [IRMAA Calculator](/irmaa-calculator) to estimate your surcharges and see how different income scenarios affect your premiums. ## Frequently Asked Questions Is IRMAA permanent? No. IRMAA is recalculated every year based on your tax return from 2 years prior. If your income drops, your IRMAA will decrease or disappear the following year. It's not a permanent penalty like the Part B late enrollment penalty. I sold my house last year and my income spiked. Will I pay IRMAA? Likely yes, two years from now. The capital gains from your home sale (above the $250K/$500K exclusion) will be included in your MAGI. Unfortunately, selling a home is not a qualifying life-changing event for an IRMAA appeal. Plan ahead by discussing timing with your tax advisor. Does IRMAA apply to Medicare Advantage premiums? IRMAA applies to your Part B premium, which you pay regardless of whether you have Original Medicare or Medicare Advantage. If your MA plan includes Part D, the Part D IRMAA surcharge also applies. The surcharge is collected by Social Security, not your MA plan. My spouse died and our income dropped. Can I appeal? Yes. Death of a spouse is a qualifying life-changing event. File Form SSA-44 with Social Security along with documentation showing your reduced income. You can request they use the current year's estimated income instead of your joint return from 2 years ago. ### Concerned About IRMAA Surcharges? We help clients navigate IRMAA appeals and plan strategies to minimize Medicare premium surcharges. Schedule a free consultation to review your situation. [Get Free IRMAA Guidance](/appointments) IRMAA brackets are set annually by CMS. Tax planning strategies should be discussed with a qualified tax professional. Dalton Insurance Agency provides Medicare guidance but does not provide tax advice. 2026 figures are based on current CMS announcements. Share this article [Facebook](https://www.facebook.com/sharer/sharer.php?u=https%3A%2F%2Fdalton-insuranceagency.com%2Fblog%2Fdoes-income-affect-medicare-premiums)[Pinterest](https://pinterest.com/pin/create/button/?url=https%3A%2F%2Fdalton-insuranceagency.com%2Fblog%2Fdoes-income-affect-medicare-premiums&description=Does%20My%20Income%20Affect%20My%20Medicare%20Premiums%3F%20IRMAA%20Explained)[Text](sms:?body=Does%20My%20Income%20Affect%20My%20Medicare%20Premiums%3F%20IRMAA%20Explained%0Ahttps%3A%2F%2Fdalton-insuranceagency.com%2Fblog%2Fdoes-income-affect-medicare-premiums)[Email](mailto:?subject=Does%20My%20Income%20Affect%20My%20Medicare%20Premiums%3F%20IRMAA%20Explained&body=I%20thought%20you%20might%20find%20this%20helpful%3A%20https%3A%2F%2Fdalton-insuranceagency.com%2Fblog%2Fdoes-income-affect-medicare-premiums)Copy Link[LinkedIn](https://www.linkedin.com/sharing/share-offsite/?url=https%3A%2F%2Fdalton-insuranceagency.com%2Fblog%2Fdoes-income-affect-medicare-premiums)[](https://twitter.com/intent/tweet?url=https%3A%2F%2Fdalton-insuranceagency.com%2Fblog%2Fdoes-income-affect-medicare-premiums&text=Does%20My%20Income%20Affect%20My%20Medicare%20Premiums%3F%20IRMAA%20Explained) ![Tyler Dalton, Medicare advisor at Dalton Insurance Agency](/assets/tyler-headshot-DgKnxokr.jpg) ## About the Author Tyler Dalton Licensed Medicare Advisor Tyler Dalton is a licensed Medicare advisor specializing in helping seniors navigate Medicare enrollment and coverage options. With expertise in Medicare Advantage, Medigap, and Part D plans,Tyler provides personalized guidance to help you find the best coverage for your needs. [View Full Bio →](/about/tyler-dalton) ## Join Our Free Medicare 101 Webinar Learn everything you need to know about Medicare in our comprehensive educational webinar. Perfect for those new to Medicare or reviewing their options. [Sign Up for Free Webinar →](https://go.daltoninsurance.biz) ## Need Personalized Guidance? Our licensed Medicare advisors are here to help you navigate your coverage options. Schedule a free consultation today. [Schedule Free Consultation](/#contact) ## Get Medicare Tips Delivered to Your Inbox Join 5,000+ Alabama seniors receiving expert Medicare guidance and updates. Plus, get our free Medicare Enrollment Checklist PDF when you subscribe. Subscribe Free 🔒 We never share your information. Unsubscribe anytime. ## Continue Reading [ Nov 22, 2025 • 18 min read ### The Complete Alabama Senior's Guide to IRMAA Appeals: How to Lower Your Medicare Premiums in 2026 If you're paying higher Medicare premiums due to IRMAA and your income has dropped since 2024, you can appeal and potentially save thousands annually. This guide walks Alabama seniors through what qualifies, what doesn't, and how to file Form SSA-44 successfully. Read article→ ](/blog/complete-alabama-seniors-guide-irmaa-appeals-2026)[ Jan 10, 2026 • 11 min read ### Why Did Medicare Send Me a Bill for $608? Understanding Your First Medicare Payment Received a $608 bill from Medicare? Learn why this quarterly bill happens for new enrollees not yet on Social Security, plus how to set up monthly payments. Read article→ ](/blog/why-medicare-bill-608-first-payment)[ Nov 21, 2025 • 12 min read ### Why Did I Get a Bill from Social Security for $619.50? If you just received a $619.50 bill from Social Security, don't panic. This represents 3 months of Medicare Part B premiums because you're not receiving Social Security benefits yet. Here's what's happening and what you need to do. Read article→ ](/blog/why-did-i-get-bill-from-social-security-619-50)[ Sep 22, 2025 • 18 min read ### What is IRMAA? Understanding Medicare's Income-Related Monthly Adjustment Amount in 2026 Comprehensive guide to IRMAA surcharges for Medicare Parts B and D. Learn how your income affects Medicare premiums, 2025 income brackets, and strategies to reduce or avoid IRMAA. Read article→ ](/blog/what-is-irmaa) In This Article - [What Medicare Covers for Diabetes](#what-medicare-covers) - [Insulin, CGMs, and Supplies](#insulin-cgms-supplies) - [Costs and Gaps](#costs-gaps) - [How to Get Help](#get-help) Related Resources - [Medicare Supplement Plan G vs N](/blog/plan-g-vs-n-alabama) - [What Is IRMAA?](/blog/what-is-irmaa) - [Working Past 65 & Medicare](/blog/working-past-65) - [Turning 65 Checklist](/blog/turning-65-checklist) Contact Us 📞 (334) 489-3624 ✉️ tyler@daltoninsurance.biz 📍 221 E South Street, Dadeville, AL 36853 🕒 Mon–Fri: 8:30 AM – 6:00 PM ⭐ Lifetime Support: Once you are our client, you are our client for life⭐ ### Dalton Insurance Your trusted Medicare & Wealth advisors. Helping families secure their health and protect their wealth for nearly 15 years. 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