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Medicare can charge an income-related monthly adjustment amount (IRMAA) in a retirement year because Social Security generally bases premiums on an earlier federal tax return. For the 2026 premium year, Social Security says it generally uses modified adjusted gross income (MAGI) from tax year 2024, or 2023 if 2024 data is unavailable. A person who stopped working in June can therefore be billed using a return that reflects a full year of salary. Retirement-related income reduction can qualify for a new determination, and the surcharge may be reduced or removed after the retiree submits Form SSA-44 and evidence.
Why Medicare used an old salary year
IRMAA is not calculated from the income you expect to receive after retirement. Social Security obtains federal tax information from the Internal Revenue Service and applies that MAGI to a premium year. Because tax returns are filed after the income year ends, the data can lag a major change such as retiring in June.
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That timing explains how a retiree can receive a large Part B and Part D surcharge even though current income is much lower. The $5,400 figure in this example is mathematically possible when monthly surcharges continue for several months, but it is not a universal Medicare charge. The total depends on the premium year, tax-filing status, MAGI band, Part D adjustment and number of months billed.
What the 2026 amounts mean
The standard Medicare Part B premium for 2026 is $202.90 per month. For single filers whose MAGI is above $109,000, the published 2026 Part B IRMAA additions are:
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- $81.20 per month
- $202.90 per month
- $324.60 per month
- $446.30 per month
- $487.00 per month
Each amount applies to a successive MAGI band in Social Security’s 2026 table. Married couples filing jointly enter the IRMAA schedule at MAGI above $218,000, with the applicable surcharge determined by the joint-filer bands. Part D IRMAA is separate, so a complete annual bill can be higher than the Part B addition alone. Premiums and thresholds change by premium year; use the table for the year being billed.
Retirement is a qualifying life-changing event
Social Security treats work stoppage or a reduction in work as a qualifying event when it causes income to fall. The retiree must document both parts of the request: what happened and how income changed. An employer letter confirming the retirement date is an example of acceptable event evidence.
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“If your income has gone down and the change makes a difference in the income level we consider, contact us to explain that you have new information.”
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Form SSA-44 (12-2025) describes the same remedy: “If you had a major life-changing event and your income has gone down, you may use this form to request a reduction in your income-related monthly adjustment amount.”
How to request a lower or removed surcharge
- Complete Form SSA-44. Identify the event as work stoppage or work reduction and enter the retirement date, such as June 2026. You can submit the form online, by fax or mail, or contact Social Security to arrange an appointment.
- Provide current income information. If the relevant federal return has already been filed, include a signed copy. If it has not been filed, Social Security guidance allows beneficiary-provided income information for a new initial determination.
- Attach event evidence. Include an employer retirement letter or comparable documentation showing the work stoppage or reduction and its date.
- Attach the strongest tax evidence available. Federal regulations identify a retained filed return, an amended return with an IRS receipt, or corrected IRS return information as preferred evidence when the tax data itself needs correction.
- Review the decision. If Social Security does not make the expected change, request reconsideration or use the available appeal process.
Choose the procedure that matches the problem
| Procedure | When it applies | Key evidence | What it addresses |
|---|---|---|---|
| SSA-44 new initial determination | A genuine income drop caused by retirement or reduced work | Proof of the life-changing event and newer income information | Updates IRMAA to reflect the lower projected income |
| Reconsideration or appeal | You disagree with Social Security’s determination or believe it applied information incorrectly | Documents showing the decision or calculation is wrong | Challenges the agency’s determination |
| Amended-return or corrected-data request | The IRS data itself is erroneous or a return was amended | Filed or amended return, IRS receipt, or corrected IRS information | Corrects the tax information used for IRMAA |
These routes can overlap. A retiree with a real income reduction should start with SSA-44; a retiree whose IRS record is wrong should also supply the corrected tax evidence.
Can the extra premiums already paid be refunded?
A successful correction can lower or eliminate the surcharge going forward. Social Security guidance also provides correction and refund procedures when too much was collected, but the amount and timing depend on the determination, premium year and months paid. Keep every premium notice, payment record and document submitted with SSA-44, and ask Social Security how any approved adjustment will be applied.
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Common mistakes that delay a correction
- Reporting retirement without stating the exact work-stoppage or work-reduction date.
- Sending a retirement letter but no income estimate or tax documentation.
- Assuming the standard Part B premium automatically applies to the entire year without a Social Security determination.
- Using a tax return from the wrong year or overlooking a separate Part D IRMAA charge.
- Treating the $5,400 example as a fixed schedule amount rather than a total that varies with months and bands.
What to expect after filing
Social Security reviews the event evidence and income information, then issues a determination. If the evidence supports a lower band, future Medicare deductions can return to the standard Part B premium or to a lower IRMAA level. If the notice still reflects the old salary year, use reconsideration or appeal rather than submitting an identical form without addressing the stated reason for denial.
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