Important: A premium reduction or elimination applies to only the year for which you filed an appeal. The SSA will reassess whether you’re subject to an IRMAA using your next available tax return. CAN I PREVENT LIABILITY? If you’re planning to retire in the next couple of years, you may be able to prevent IRMAA liability by lowering your MAGI. After all, actions taken on your 2025 federal income tax return affect your 2025 MAGI—which will, in turn, impact your 2027 Medicare premiums. Careful planning is especially relevant if you’re self-employed or a pass-through entity owner, such as: An S corporation shareholder, A partner in a partnership, or A member of a limited liability company treated as a partnership for tax purposes. Such individuals may have valuable opportunities to manage taxable income when preparing their returns. For instance, the self-employed have until the due date of their 2025 tax returns to make deductible IRA contributions under a Simplified Employee Pension (SEP) plan. (For the 2025 tax year, the deadline is April 15, 2026.) If you’re self-employed and file for an automatic tax return extension, you’ll have until Oct. 15, 2026, to contribute to your SEP-IRA. In either case, that contribution will lower your 2025 MAGI and potentially your 2027 Medicare premiums. Likewise, pass-through entity owners may be able to make other choices to lower their MAGI. One possibility may be to maximize or minimize business depreciation deductions. (This is a good opportunity to discuss specific strategies with your clients.) WHO CAN HELP? For retirees and soon-to-be retirees, it’s critical to address the possibility of being subject to an IRMAA so you can decide whether to file an appeal. If you leave the matter to chance and you are liable, Medicare will keep charging you higher premiums based on old tax returns that may no longer reflect your current income. CPAs can help review or project their clients’ MAGI to determine the best path forward. 2026 Medicare Income-Related Monthly Adjustment Amounts (IRMAAs) Tax Filing Status MAGI* Part B IRMAAs Part D IRMAAs Single† $109,000.01-$137,000 $81.20 $14.50 $137,000.01-$171,000 $202.90 $37.50 $171,000.01-$205,000 $324.60 $60.40 $205,000.01-$499,999.99 $446.30 $83.30 More than $499,999.99 $487.00 $91.00 Married Filing Jointly $218,000-$274,000 $81.20 $14.50 $274,000.01-$342,000 $202.90 $37.50 $342,000.01-$410,000 $324.60 $60.40 $410,000.01-$749,999.99 $446.30 $83.30 More than $749,999.99 $487.00 $91.00 *Modified adjusted gross income. †Includes head of household, qualifying widow(er) with dependent child, and married filing separately if you didn’t live with your spouse during the tax year. 31 nescpa.org
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