Here’s a surprise a lot of new retirees get. You stop working, your income drops, and then a letter from Social Security says you owe hundreds of dollars more a month for Medicare.
The reason is IRMAA, the extra charge Medicare adds for higher earners. It’s based on your tax return from two years ago, so your 2027 premiums are set by what you earned in 2025. If your life has changed since then, there’s a form that can fix it, and late fall is the best time to use it.
What IRMAA is
IRMAA stands for Income-Related Monthly Adjustment Amount. If your modified adjusted gross income is above a certain level, you pay the standard Medicare Part B premium plus an extra monthly charge. A similar charge is added to Part D drug coverage. Social Security decides who pays it using IRS data and sends a notice, usually near the end of the year.
Projected 2027 brackets
The official 2027 numbers haven’t been released yet. Medicare usually announces them in late October or early November. These are projections from Kiplinger, based on 2025 income:
| Single (2025 income) | Married filing jointly | Extra Part B per month | Extra Part D per month |
|---|---|---|---|
| $112,000 or less | $224,000 or less | $0 | $0 |
| $112,001 to $142,000 | $224,001 to $284,000 | $83.70 | $15.40 |
| $142,001 to $177,000 | $284,001 to $354,000 | $209.40 | $39.70 |
| $177,001 to $212,000 | $354,001 to $424,000 | $335.10 | $64.00 |
| $212,001 to $499,999 | $424,001 to $749,999 | $460.70 | $88.30 |
| $500,000 or more | $750,000 or more | $502.60 | $96.40 |
The extra charges are added on top of the standard premiums. One thing to watch: the brackets have hard cut-offs. Going just $1 over a threshold means paying the full surcharge for that tier.
So a single retiree who earned $150,000 in their last full working year, 2025, could pay around $209 more a month for Part B in 2027, even if they now live on far less. That’s about $2,500 a year.
When you can ask for a lower amount
You can ask Social Security to use a more recent, lower income if your income dropped because of one of these life-changing events:
- marriage
- divorce or annulment
- death of your spouse
- you stopped working or cut back your hours
- loss of income-producing property, for example from a disaster or fraud
- loss or reduction of a pension
- an employer settlement payment from a bankruptcy or reorganization
Retirement counts as “work stoppage,” and it’s by far the most common reason people use the form. A one-off jump in income, such as selling a house or stock, or a large IRA withdrawal, doesn’t count on its own.
How to do it, step by step
- Get Form SSA-44 from ssa.gov/forms.
- Choose your event and the date it happened.
- Enter your lower income. You can use your actual income for the year, or a reasonable estimate if you haven’t filed your taxes yet.
- Attach proof. For retirement, that’s a letter from your employer, pay stubs, or a signed statement on the form itself. For a death or divorce, you’ll need a certified certificate or decree.
- Submit it by mail, at a local office, or by appointment on 1-800-772-1213.
If SSA approves it, your surcharge is reduced or removed. If you’ve already been paying, SSA will usually adjust it and refund what you overpaid.
Why now is a good time
IRMAA notices for 2027 usually go out from late November. Filing SSA-44 with an estimate now can sometimes get your premium fixed before January, rather than paying more and waiting for a refund later.
One caution: if you use an estimate, SSA will check it against your actual tax return. If your real income turns out higher, you may owe the difference.
Sources: SSA Form SSA-44, Kiplinger, Projected 2027 IRMAA brackets and 24/7 Wall St.
Jackson is a dedicated USA news writer, who covers important topics such as Social Security payment schedules, COLA increases, IRS tax refunds, stimulus payment announcements, Medicare eligibility, retirement benefits, and changes to state driving laws. His goal is to provide clear, informative, and easy-to-follow articles that help retirees, seniors, taxpayers, and American families stay informed.