Social Security and IRMAA calculation - what percent of SS benefits counts toward MAGI threshold?
I'm completely confused about how much of my Social Security counts when calculating MAGI for Medicare IRMAA surcharges. I just started receiving survivor benefits this year and I'm trying to plan an IRA withdrawal without triggering those extra Medicare premiums. I've found conflicting information online - some sites say 50% of SS counts, others say 85%, and a few claim your entire benefit amount is included in MAGI. When I called Medicare, the representative had no idea what MAGI even was and told me to contact Social Security instead! My financial situation this year includes my late husband's survivor benefits, a small pension, and I'm on unemployment for a few months. I need to take a distribution from my IRA but want to be strategic about the amount to avoid pushing myself into a higher IRMAA bracket. Does anyone know definitively how much of my Social Security gets counted toward MAGI for IRMAA purposes, or can you point me to a reliable resource? The last thing I need is a surprise premium increase for Medicare Parts B and D next year.
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Zoe Stavros
It's not a simple percentage - it depends on your total income. The taxable portion of your Social Security (which is what counts toward MAGI) can be 0%, up to 50%, or up to 85% depending on your combined income. For IRMAA purposes, MAGI includes your adjusted gross income (AGI) PLUS your tax-exempt interest income PLUS the taxable portion of Social Security benefits. If you file as an individual and your combined income (AGI + tax-exempt interest + 1/2 of SS benefits) is: - Under $25,000: 0% of your SS is taxable and counts toward MAGI - Between $25,000-$34,000: up to 50% of your SS may be taxable - Over $34,000: up to 85% of your SS may be taxable The exact calculation is a bit complicated, but you'll never have more than 85% of your Social Security benefits counted.
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Andre Moreau
•Thank you so much for this explanation. So it sounds like in my case (with pension, survivor benefits, and unemployment), I'll likely fall into that category where 85% of my SS counts. Is there a worksheet or calculator you'd recommend to figure out exactly how much I can withdraw from my IRA without crossing the IRMAA threshold?
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Jamal Harris
The previous answer is good but misses a key point - for IRMAA specifically, they look at your tax return from 2 years ago. So if you're concerned about IRMAA in 2025, they'll look at your 2023 tax return. If this is your first year on Social Security (2024), then your 2023 return wouldn't have included SS benefits. And yes, the maximum is 85% of your Social Security benefits that can be taxable and count toward MAGI. Never 100%. I recommend using the IRS Publication 915 worksheet to calculate the taxable portion of your benefits. Then use the IRMAA brackets on Medicare.gov to see where you fall.
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Mei Chen
•this is so true!! my mom got hit with irmaa surcharges because of a one-time property sale 2 years before. she had no idea they look back like that!
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Liam Sullivan
I went through this exact headache last year! The SSA and Medicare people kept sending me back and forth between offices. Nobody seemed to know the answer. I finally figured out I needed to look at the IRMAA determination letter they sent me, which showed they were using my AGI plus tax-exempt interest plus taxable SS from my tax return.
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Andre Moreau
•Did you eventually find someone knowledgeable to talk to? I feel like I'm getting nowhere with both agencies.
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Amara Okafor
OMG this IRMAA stuff is SO COMPLICATED!!!!! I've been dealing with this for 3 years and STILL don't understand it. Last year they charged me an extra $60 per month for Medicare because I took out too much from my 401k the previous year to fix my roof. I tried to appeal it with a life-changing event form but they DENIED it saying home repairs don't count!!!! The whole system is designed to confuse seniors and take our money!!!
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Zoe Stavros
•You're right that home repairs don't qualify as a life-changing event for IRMAA appeals. The valid life-changing events are limited to: - Death of spouse - Marriage/divorce - Work reduction or stoppage - Loss of income from income-producing property - Loss of pension income - Employer settlement payment It's frustrating, but at least IRMAA is only based on that one year's income, so the surcharge should have gone away the following year.
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CosmicCommander
my tax guy said its up to 85% that counts. but what really matters is staying under the brackets. for 2024 the first bracket is $103,000 for individuals, $206,000 married. if you go $1 over you pay extra all year!
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Andre Moreau
•That's exactly what I'm trying to avoid! I need to take enough from my IRA to cover some expenses but not so much that I cross over that threshold. I'm trying to calculate exactly how much wiggle room I have.
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Giovanni Colombo
After struggling with this same issue, I discovered a tool that was actually helpful. The AARP has a tax calculator on their website that can help you estimate the taxable portion of your Social Security benefits. I've used it for the past two years and it's been pretty accurate. And just to echo what others have said - yes, the maximum that can be included in your MAGI for IRMAA calculations is 85% of your Social Security benefits, never 100%.
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Liam Sullivan
•I just checked out that AARP calculator and it was really helpful, thanks for sharing this!
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Amara Okafor
Has anyone else noticed that you can call Social Security 5 times about IRMAA and get 5 COMPLETELY DIFFERENT ANSWERS???? I spent TWO WEEKS trying to get someone who understood how the MAGI calculation works. Every time I called I'd wait on hold for 2+ hours only to get someone who clearly had no idea what they were talking about!!!!
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Giovanni Colombo
•I had the same frustrating experience trying to get through to SSA about IRMAA questions. After multiple failed attempts with 2+ hour waits, I found a service called Claimyr that got me through to a representative in under 10 minutes. They essentially call SSA for you and connect you when an agent is available. Saved me hours of hold time. You can see how it works at https://youtu.be/Z-BRbJw3puU or check out their website at claimyr.com. It was worth it to finally get my IRMAA questions addressed by someone who actually knew what they were talking about.
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Jamal Harris
To give you a concrete example of how this works: Let's say you receive $20,000 in Social Security benefits for the year. Your pension is $30,000. Unemployment is $10,000. To calculate how much of your SS is taxable: 1. Take half your SS: $10,000 2. Add that to your other income: $10,000 + $30,000 + $10,000 = $50,000 3. This is over $34,000, so up to 85% of your benefits may be taxable The actual calculation then gets complex (using worksheets in IRS Pub 915), but in this scenario, you'd likely have 85% of your SS ($17,000) included in your MAGI. So your MAGI for IRMAA would be approximately $57,000 ($30,000 pension + $10,000 unemployment + $17,000 taxable SS). Then you need to determine how much you can withdraw from your IRA before hitting the first IRMAA threshold.
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Andre Moreau
•This example is incredibly helpful! My numbers are somewhat similar. If the first IRMAA threshold is around $103,000 for 2024, then I'd have about $46,000 of room for my IRA withdrawal before triggering the surcharge. Does that sound right?
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Zoe Stavros
Yes, that's correct based on the example numbers. With a MAGI of $57,000 before any IRA withdrawal, you could potentially withdraw up to about $46,000 before hitting the first IRMAA threshold of $103,000 for an individual. Just remember two important things: 1. These IRMAA thresholds are adjusted each year for inflation, so the exact numbers might change slightly. 2. The IRMAA determination for 2026 will be based on your 2024 income (the 2-year lookback), so the planning you're doing now is for your Medicare premiums two years from now. It's smart to stay just under the threshold if possible, as even $1 over can trigger the full surcharge amount for the year.
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Andre Moreau
•Thank you! This has been so much more helpful than the conflicting information I was finding online. I appreciate everyone taking the time to explain this clearly.
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