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Estimated 2025 IRMAA Brackets: Navigating the Income-Related Monthly Adjustment Amount

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Estimated 2025 IRMAA Brackets: Navigating the Income-Related Monthly Adjustment Amount

What is the Income-Related Monthly Adjustment Amount (IRMAA)?

Introduction

The Medicare Part B and Part D premiums for individuals who earn above certain income thresholds are subject to an Income-Related Monthly Adjustment Amount (IRMAA). IRMAA is a surcharge that helps offset the costs of Medicare for higher-earners. The IRMAA brackets are adjusted annually to reflect changes in the cost of living.

This article provides an overview of the estimated IRMAA brackets for 2025, based on the latest available information from the Centers for Medicare & Medicaid Services (CMS). Understanding the IRMAA brackets is crucial for individuals and families planning their Medicare expenses and ensuring they budget accordingly.

Estimated 2025 IRMAA Brackets for Part B

For individuals filing as single or married filing separately, the estimated IRMAA brackets for Part B premiums in 2025 are as follows:

  • $97,000 – $129,000: $59.10
  • $129,001 – $170,500: $118.30
  • $170,501 – $212,000: $177.40
  • $212,001 – $253,500: $236.60
  • $253,501 and above: $354.80

For individuals filing as married filing jointly, the estimated IRMAA brackets for Part B premiums in 2025 are as follows:

  • $194,000 – $258,000: $59.10
  • $258,001 – $341,000: $118.30
  • $341,001 – $424,000: $177.40
  • $424,001 – $507,000: $236.60
  • $507,001 and above: $354.80

Estimated 2025 IRMAA Brackets for Part D

For individuals filing as single or married filing separately, the estimated IRMAA brackets for Part D premiums in 2025 are as follows:

  • $91,000 – $121,000: $12.40
  • $121,001 – $160,000: $24.80
  • $160,001 – $200,000: $37.30
  • $200,001 – $240,000: $49.70
  • $240,001 and above: $74.60

For individuals filing as married filing jointly, the estimated IRMAA brackets for Part D premiums in 2025 are as follows:

  • $182,000 – $242,000: $12.40
  • $242,001 – $320,000: $24.80
  • $320,001 – $400,000: $37.30
  • $400,001 – $480,000: $49.70
  • $480,001 and above: $74.60

Calculating Your IRMAA

To calculate your IRMAA, you will need to:

  1. Determine your modified adjusted gross income (MAGI) from your tax return.
  2. Compare your MAGI to the IRMAA brackets.
  3. Apply the corresponding IRMAA amount to your Medicare premiums.

For example, if you are single and your MAGI is $135,000, you would be in the $129,001 – $170,500 IRMAA bracket for Part B. This means you would pay an additional $118.30 per month for your Part B premium.

Income Exclusions for IRMAA

Certain types of income are excluded when calculating your MAGI for IRMAA purposes, including:

  • Social Security benefits
  • Railroad Retirement benefits
  • Tax-free municipal bond interest
  • Foreign income earned by U.S. citizens living abroad

Conclusion

Understanding the estimated 2025 IRMAA brackets is essential for individuals and families who are planning their Medicare expenses. By knowing the income thresholds and the corresponding surcharge amounts, you can budget accordingly and avoid any surprises.

It is important to note that these IRMAA brackets are estimates and may be subject to change based on final regulations issued by CMS. Always consult with a tax professional or Medicare expert if you have any questions about your IRMAA status or calculations.

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