IRMAA stands for Income-Related Monthly Adjustment Amount. The IRMAA rate for 2023 is an additional charge for Medicare Part B and Part D premiums for those with higher incomes. It affects those who have an income of over $88,000 for an individual or $176,000 for a married couple filing jointly. The rate is based on the modified adjusted gross income (MAGI) reported by the taxpayer on the IRS tax return from two years prior.
The IRMAA rate for 2023 is not yet known, as it is based on the MAGI reported to the IRS in 2021. However, the Centers for Medicare & Medicaid Services (CMS) has released the thresholds for the IRMAA rate for 2021 and 2022. This can be used as an estimate of the IRMAA rate for 2023.
IRMAA Rate For 2021
The IRMAA rate for 2021 will be based on the MAGI reported to the IRS in 2019. The thresholds for the IRMAA rate for 2021 are as follows:
- Individuals making less than $87,000 will not be charged an IRMAA
- Individuals making between $87,001 and $109,000 will be charged an IRMAA of $54.10 per month
- Individuals making between $109,001 and $136,000 will be charged an IRMAA of $109.10 per month
- Individuals making between $136,001 and $163,000 will be charged an IRMAA of $172.20 per month
- Individuals making over $163,000 will be charged an IRMAA of $292.20 per month
IRMAA Rate For 2022
The IRMAA rate for 2022 will be based on the MAGI reported to the IRS in 2020. The thresholds for the IRMAA rate for 2022 are as follows:
- Individuals making less than $88,000 will not be charged an IRMAA
- Individuals making between $88,001 and $111,000 will be charged an IRMAA of $56.40 per month
- Individuals making between $111,001 and $139,000 will be charged an IRMAA of $112.40 per month
- Individuals making between $139,001 and $166,000 will be charged an IRMAA of $178.20 per month
- Individuals making over $166,000 will be charged an IRMAA of $304.20 per month
IRMAA Rate For 2023
The IRMAA rate for 2023 will be based on the MAGI reported to the IRS in 2021. It is not yet known what the thresholds for the IRMAA rate for 2023 will be. However, based on the thresholds for 2021 and 2022 it is likely that the IRMAA rate for 2023 will be higher than the current rate.
How To Appeal An IRMAA Rate
If you believe that your MAGI was reported incorrectly on your IRS tax return, you may be able to appeal the IRMAA rate. You should contact the Social Security Administration (SSA) to discuss your situation and the appeals process. The SSA will review your situation and may be able to reduce or eliminate your IRMAA rate.
Conclusion
The IRMAA rate for 2023 is not yet known, as it is based on the MAGI reported to the IRS in 2021. However, based on the thresholds for 2021 and 2022 it is likely that the rate will be higher than the current rate. If you believe that your MAGI was reported incorrectly on your IRS tax return, you may be able to appeal the IRMAA rate by contacting the Social Security Administration.