When you become eligible for Medicare and look at how much to budget for your annual health care costs, you’ll need to also factor in your tax-reported income. Medicare has set income limits for people filing individual tax returns, joint tax returns and individuals who are married or living with their spouse at any time during the year and file separate tax returns. These limits are then used to determine adjusted costs for Medicare Part B and Part D premiums.
Depending on how much you make, you may have to pay an income-related monthly adjustment amount (IRMAA) for Part B and Part D. This amount and the income limits Medicare set can both change every year.
In 2021, people with tax-reported incomes over $88,000 (single) and $176,000 (joint) must pay an income-related monthly adjustment amount for Medicare Part B and Part D premiums.
Below are the set income limits and extra monthly costs you could pay for Medicare Part B and Part D based on your tax-reported income.
How Much Will Your Medicare Part B Premium Be?
The tables below show Part B premiums for 2021 by filing status and income level. The IRMAA is based on your reported adjusted gross income from two years ago. For 2021, your Part B premium may be as low as $148.50 or as high as $504.90.