The Surcharge Tied to Your Tax Return: IRMAA Explained for 2026
The Surcharge Most People Don’t See Coming
IRMAA, the Income-Related Monthly Adjustment Amount, increases what some retirees pay for Part B and Part D based on income reported two years earlier, not current income.
Not sure if IRMAA applies to your situation? Find out if IRMAA affects your premium
How It’s Actually Calculated
IRMAA uses your modified adjusted gross income from two years prior. A retiree who sold a home, took a large retirement account withdrawal, or had an unusually high-income year two years ago can be surprised by a higher premium now, even if current income has dropped substantially.
There’s a process to appeal this if a life-changing event, retirement, divorce, loss of income, occurred since that tax year, called a Form SSA-44.
Think a life event might qualify you for an adjustment? See if you qualify for an IRMAA appeal
The Bottom Line
IRMAA catches people off guard because it looks backward, not forward. Knowing the lookback rule, and the appeal option, is the only way to avoid an unwelcome surprise.
Ready to Talk It Through?
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