TN 20 (12-22)
Modified Adjusted Gross Income (MAGI) is the sum of:
the beneficiary’s adjusted gross income (AGI) (found on line 11 of the Internal Revenue
Service (IRS) tax filing form 1040), plus
tax-exempt interest income (line 2a of IRS Form 1040).
The MAGI used to determine if the income-related monthly adjustment amount (IRMAA)
applies is the most recent tax information that IRS is able to provide. Generally,
the information is from two years prior to the year for which the premium is being
determined, but not more than three years prior. For example, 2023 premiums are generally
based on 2021 tax return information. See HI 01101.020 for more detail about how MAGI is used.
Beneficiaries with Medicare Part B, prescription drug coverage, or both, with MAGI
above the applicable threshold pay more toward their coverage premiums because of
IRMAA. See the policy for MAGI thresholds in HI 01101.010B.
Beneficiaries with MAGI above the threshold are subject to a sliding scale increase
in their premiums. See HI 01101.020, IRMAA Sliding Scale Tables.
The MAGI thresholds used for IRMAA calculations are:
IRS Filing Status
Married, filing jointly
All other filing statuses