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Business · Personal finance · published 2026-10-10 · via 24/7 Wall St.

Medicare Surcharges Can Linger After Commission Income Falls

Image via 24/7 Wall St.
Image via 24/7 Wall St.

Medicare sets income-related premium surcharges using tax returns from two years earlier, so a high 2024 income can determine 2026 costs even if earnings fall later. A 67-year-old commissioned salesman whose income dropped by $80,000 could not appeal because a slow market is not one of the eight SSA-44 qualifying events. The article says reducing MAGI before Dec. 31 of a high-income year through moves such as 401(k) deferrals or deferred stock sales can lower future surcharges.

Expanded Detail

EXPANDED:

Medicare’s IRMAA calculation uses a two-year delay: 2024 tax data sets 2026 premiums, 2025 sets 2027, and 2026 sets 2028. MAGI adds tax-exempt interest to adjusted gross income, so municipal bond interest can lift a household into a costlier tier. About 8% of beneficiaries pay such surcharges.

For couples

Expanded detail and Context are AI-generated analysis; the linked article remains the authoritative source.
Read the full article at 24/7 Wall St. →
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This summary is Al-enhanced to contain extended analysis and broader social context. The original is {NAME); the linked article is the authoritative source. Original headline: “At 67, His Commission Income Will Fall $80,000 in a Bad Year. Social Security Will Keep Pricing His Medicare Premium on the Good Year, Because a Slow Market Is Not One of the Eight Events on Form SSA-44.” Browse more stories.