i am trying to avoid irmaa medicare charges in 2025
what part (taxable, untaxed, all ?) of my 2023 social security income is included in my 2023 magi (for irmaa purposes) ?
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DallinH FreeTaxUSA Agent Posts: 1
That is an excellent question! Your MAGI is figured using A) the beneficiary's adjusted gross income (AGI), which is reported on line 11 of your IRS form 1040 and B) the tax-exempt interest income reported on line 2a of your IRS form 1040.
Your AGI includes only the taxable portion of your Social Security benefits.
See AlsoQualify for Roth IRA Contributions by Lowering Your IncomeHow to Calculate Adjusted Gross Income (AGI) for Tax PurposesMedicare Income-Related Monthly Adjustment Amount (IRMAA) Surcharge – What Does It Mean, What Can I Do, and How? [Updated February 2024] - Merriman Wealth ManagementModified Adjusted Gross Income (MAGI) - GlossaryThe MAGI used to determine if the IRMAA applies is the most recent tax information that the IRS is able to provide. Generally, this means that the information used is from two years prior. For example, 2024 premiums are generally based on 2022 return information.
You can read more on this at this link:
https://secure.ssa.gov/poms.nsf/lnx/0601101010
For percentage tables and IRMAA calculations, you can visit this link:
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Answers
Teegee1949 Member Posts: 2 Newcomer
So if you have no tax exempt interest - the AGI and MAGI are the same?
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Teegee1949 Member Posts: 2 Newcomer
Still waiting to hear how to calculate MAGI for both Roth Contribution and IRMA purposes. No one seems to know.
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igielniks Member Posts: 3 Newcomer
from website: arnoldmotewealthmanagement.com
This is a common question, and one that is answered incorrectly on several prominent websites.
The calculation for IRMAA MAGI (Modified Adjusted Gross Income) includes just the taxable portion of Social Security. This comes fromthe Social Security Handbook here, which states:
“Modified Adjusted Gross Income is the sum of:
- The beneficiary’s adjusted gross income (AGI), plus
- Tax-exempt interest income”
** this is line 6b on form 1040 **
is the magi line 6a, 6b, or 6a-6b ?
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igielniks Member Posts: 3 Newcomer
from website: arnoldmotewesthmanagement.com
What Type of Income Contributes to IRMAA?
IRMAA is based off of what is called your Modified Adjusted Gross Income, or MAGI.
This can be confusing to calculate or find because it is not a specific line item on your tax return.
To calculate MAGI for Medicare IRMAA, take you AGI and add tax-exempt interest.
AGI (Adjusted Gross Income) is the sum of all your income that is subject to tax – the most common sources for this for retirees is IRA withdrawals, capital gains, dividends, interest from CDs, andonlythe taxable portion of your social security. This total is a line item on your annual tax return.
Then add in the total of your non-taxable interest – This is usually any municipal bond income. The total of your AGI, plus non-taxable interest, is your MAGI for IRMAA purposes.
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KeriC FreeTaxUSA Agent Posts: 93
Yes, if you don't have tax-exempt interest your AGI and MAGI are generally the same.
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