Medicare Part B cost is based on MAGI
Some people automatically get Social Security’s Medicare Part B (Medical Insurance), and some people need to sign up for Part B.
If you don’t sign up for Part B when you’re first eligible, you may have to pay a late enrollment penalty.You need to pay a premium each month for Part B. Your Part B premium will be automatically deducted from your monthly retirement benefit payment.
Many people pay the standard premium amount of %148.50 per month. If your modified adjusted gross income (MAGI) is above a certain amount, you may pay an Income Related Monthly Adjustment Amount (IRMAA). Medicare uses the modified adjusted gross income reported on your IRS tax return from 2 years ago. This is the most recent tax return information provided to Social Security by the IRS.
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| If your yearly income in 2019 (for what you pay in 2021) was | Monthly premium (in 2021) |
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|---|---|---|---|
| Individual tax return | Married joint | Married separate | |
| $88,000 or less | $176,000 or less | $88,000 or less | $148.50 |
| above $88,000 up to $111,000 | above $176,000 up to $222,000 | Not applicable | $207.90 |
| above $111,000 up to $138,000 | above $222,000 up to $276,000 | Not applicable | $297.00 |
| above $138,000 up to $165,000 | above $276,000 up to $330,000 | Not applicable | $386.10 |
| above $165,000 and less than $500,000 | above $330,000 and less than $750,000 | above $88,000 and less than $412,000 | $475.20 |
| $500,000 or above | $750,000 and above | $412,000 and above | $504.90 |
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