Why Is Medicare Using My Income From Two Years Ago After I Retired?
Medicare uses tax-return income from two years earlier to set IRMAA, so a premium surcharge can remain after retirement cuts current income. A retirement, work reduction, or another listed life-changing event can support a request for a lower Part B and Part D surcharge through Social Security's Form SSA-44, with proof of the event and newer income information.
Why is Medicare using my income from two years ago after I retired?
Because IRMAA is built from a tax return, not a live view of a household's cash flow. For 2026, Social Security generally uses the 2024 federal return filed in 2025, according to the Social Security Administration's Medicare premiums guidance.
That lag explains the common retirement mismatch. A person can stop work in the current year while a prior return still shows wages, a large gain, or other income. The notice is using the return supplied by the IRS. It is not saying current income stayed the same.
For 2026, Medicare says the first IRMAA tier starts above $109,000 for most individual filers and above $218,000 for married couples filing jointly, based on 2024 income. The standard Part B premium is $202.90 per month in 2026, while higher Part B premiums range from $284.10 to $689.90 per month, according to Medicare.gov's 2026 Medicare Costs publication.
| What Medicare reviews | What it means for 2026 |
|---|---|
| Tax year | 2024 income, generally reported on a 2025 return, according to Social Security. |
| IRMAA income measure | Adjusted gross income plus tax-exempt interest, according to Social Security. |
| First higher-income threshold | Above $109,000 for most individual filers or above $218,000 for joint filers, according to Medicare.gov for 2026. |
| Part D surcharge | $14.50 to $91.00 per month in 2026, in addition to the plan premium, according to Medicare.gov. |
The phrase to watch is modified adjusted gross income, or MAGI. On the December 2025 SSA-44, Social Security defines it as Form 1040 adjusted gross income from line 11 plus tax-exempt interest from line 2a. Tax-exempt interest still counts here. A tax break is not always an IRMAA break.
Social Security sends the income-related adjustment notice for the coming year in November, according to Medicare.gov's notice description. Read the tax year and filing status on that letter before treating the premium as an error.
Can I appeal IRMAA when my income drops after retirement?
Yes, Social Security allows a lower Part B and Part D IRMAA request after a qualifying life-changing event reduces household income. Retirement usually fits the form's work stoppage category. A cut in hours can fit work reduction.
The December 2025 SSA-44 lists marriage, divorce or annulment, death of a spouse, work stoppage, work reduction, loss of income-producing property, loss of pension income, and an employer settlement payment. The Social Security IRMAA request page also describes marriage, divorce, death of a spouse, loss of income, and an employer settlement payment as qualifying events.
This is not a broad request to use a preferred tax year. It is a request tied to a listed event and a documented income decline. The event creates the path. The evidence carries the claim.
Social Security permits an online request through a Social Security account, or an SSA-44 sent by fax or mail to a Social Security office. An amended return follows a different route: Social Security says to contact the agency rather than use the online SSA-44 workflow.
The form asks for evidence of both parts of the story: the event and more recent MAGI. Its instructions name signed tax returns and tax transcripts as examples of income evidence. It also states that Social Security checks estimates against later IRS records. An estimate is a statement to be checked, not a blank check.
Work changes can arrive in stages. A reader weighing temporary work after retirement can also review how retirees can find flexible work without age bias. For IRMAA, the relevant distinction is whether work stopped or was reduced and whether that change lowered household income.
When should I file Form SSA-44?
File Form SSA-44 after a listed life-changing event has reduced income or when the form permits reporting an anticipated reduction in the current or next year. The December 2025 SSA-44 expressly allows both a reduction that already occurred and one expected in the current or next year.
The clean sequence is simple. Read the IRMAA notice. Confirm the tax year Social Security used. Match the income drop to a listed event. Gather proof of the event and current or expected MAGI. Then submit the online request or the form through the available Social Security channel.
Do not confuse an IRMAA request with a way to erase every high-income year. A Roth conversion is a clear planning conflict. The IRS states that converting a traditional, SEP, or SIMPLE IRA to a Roth IRA taxes the untaxed amount, as explained in its IRA retirement-plan FAQs. Since IRMAA uses MAGI, conversion income can raise the tax-year income used for a later IRMAA determination.
The reversal option is narrow. The IRS says Roth conversions made on or after January 1, 2018 cannot be recharacterized. A conversion can solve one tax question and create a later premium question. The dates connect them.
IRA withdrawals, capital gains, tax-exempt interest, and Roth conversions do not share the same tax treatment. They can still meet in the MAGI calculation Social Security uses for IRMAA. For 2026, that calculation reaches back to 2024. Retirement changes the income stream; the two-year lookback changes the timing.
A successful request depends on the facts, the qualifying event, and Social Security's review. The useful record is the notice, the tax year behind it, the event evidence, and the newer income record. Old income can set a premium. New evidence can reopen the question.
Frequently Asked Questions
Do both spouses need to submit an SSA-44 form?
Social Security's SSA-44 is an individual request form, and the agency evaluates the applicant's life-changing event and income evidence. A household filing status can affect the income used for IRMAA, so each spouse affected by a surcharge or a qualifying event should review the notice and form instructions. The provided sources do not state that one spouse's submission automatically resolves the other spouse's IRMAA.
Can a Roth conversion increase my Medicare premiums?
Yes. The IRS states that a Roth conversion taxes untaxed amounts in a traditional, SEP, or SIMPLE IRA, and Social Security defines IRMAA income as adjusted gross income plus tax-exempt interest. That added taxable income can be part of the tax year Social Security later uses for an IRMAA determination.
Will I receive a refund if my IRMAA appeal is approved?
The provided Social Security materials say the agency can reconsider IRMAA after a documented life-changing event, but they do not state the refund process or timing. The determination letter and follow-up from Social Security are the records that establish how an approved adjustment is handled.
Sources
- Social Security Administration - Request to lower an Income-Related Monthly Adjustment Amount (IRMAA)
- Social Security Administration - Form SSA-44, Medicare Income-Related Monthly Adjustment Amount--Life-Changing Event
- Social Security Administration - Benefits Planner: Medicare Premiums
- Medicare.gov - 2026 Medicare Costs
- Internal Revenue Service - Retirement Plans FAQs Regarding IRAs
- Medicare.gov - Social Security Income-Related Monthly Adjustment Amount Notice
Disclaimer: This article is for general information only and is not financial advice. It does not take your personal circumstances into account, and past performance does not predict future results. Speak to a licensed financial professional before making money decisions.