07/13/2026
PSA For my elderly clients: 34k posts about that hashtag !
IRMAA stands for Income-Related Monthly Adjustment Amount. Itās actually an extra Medicare premium, not a tax credit. If someone has a higher income, they pay more each month for Medicare Part B and Part D.
Hereās how it works:
* Social Security looks at your tax return from two years ago.
* If your Modified Adjusted Gross Income (MAGI) is above certain thresholds, they add a surcharge to your Medicare premiums.
* For example, in 2026, theyāre generally using 2024 tax returns to determine whether IRMAA applies.
This catches a lot of retirees by surprise after events like:
* Selling a home with a large capital gain.
* Selling a business.
* Taking a large IRA withdrawal or Roth conversion.
* Receiving a big bonus before retirement.
The good news is that if someoneās income has dropped because of a life-changing eventāsuch as retirement, divorce, death of a spouse, or loss of incomeāthey can ask Social Security to recalculate their IRMAA by filing Form SSA-44.
Since youāre a real estate broker, this is especially relevant because clients who:
* sell a highly appreciated home,
* cash out investments, or
* have a large one-time taxable event
may suddenly receive an IRMAA notice a year or two later and wonder why their Medicare premiums jumped.
Feel free to post your favorite estate attorneys and resources for others.
