She Retired in June. Social Security Will Set Her 2027 Medicare Premium on a Full Year of Her Old Salary Unless She Files One Form.
Linda's last paycheck cleared in June, but Social Security is about to price her 2027 Medicare coverage as if she never stopped working. One form exists specifically for this situation, and most new retirees never hear about it until the…
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Linda closed her laptop for the last time on June 30, 2026, ending a 34-year career at a salary above $160,000. She assumed her 2027 Medicare premiums would reflect the much smaller income she expects in retirement.Β The first calculation probably will not.
Social Security will ordinarily begin with the most recent tax information available, which shows a full year of Lindaβs former salary. Once the premium notice arrives, one form can replace that old financial picture with a more current one.
Why 2025 Sets the Starting Number
Medicareβs income-related monthly adjustment amount (IRMAA) generally runs on a two-year lookback. The Social Security Administration normally uses modified adjusted gross income (MAGI) from 2025 to set Part B and Part D premiums for 2027. That return shows 12 months of Lindaβs old salary. Her 2026 income includes only half a year of wages, but the return documenting that change will not be filed until spring 2027. Her 2027 income may be lower still.
Social Security is not assuming she secretly kept working. It is using the last complete tax return the IRS supplied.Β The income-related notice generally arrives before the new premium year. It identifies the tax year and income Social Security used, the surcharge tier and the monthly amounts that will apply unless the determination changes.
What the Older Income Can Cost
The 2027 premiums and IRMAA brackets have not been published yet, so the current 2026 schedule provides the clearest reference.Β Under that schedule, the standard Part B premium is $202.90 a month. A single filer with MAGI of $160,000 falls in the tier above $137,000 and at or below $171,000. The total Part B premium becomes $405.80, including a $202.90 monthly surcharge. Part D adds another $37.50 a month before the premium charged by the drug plan.
That is a combined income surcharge of $240.40 a month, or $2,884.80 for the year. The actual 2027 thresholds and premiums will differ, but the reason for the surcharge will be the same: Social Security started with a tax return from Lindaβs working years.Β Roughly 8% of Part B beneficiaries pay IRMAA. Retirement is one of the situations in which Social Security can replace the older income with a more recent figure.
Form SSA-44 Replaces the Old Picture
Form SSA-44 allows a beneficiary to request a new determination when MAGI falls because of a qualifying life-changing event. A complete retirement counts as a work stoppage. Moving from full-time to part-time work can qualify as a work reduction.Β Linda expects her 2027 MAGI to be about $55,000. Because that is lower than both her 2025 income and her partial-year 2026 income, the form instructions allow her to provide an estimate for the 2027 premium year.
She should include evidence of the work stoppage, such as an employer statement or retirement letter. Social Security can also accept an attestation under penalty of perjury. If she uses an income estimate, she must later provide the signed tax return when it is filed so the agency can verify the figure.Β SSA-44 is not technically required. A beneficiary may request a new determination by contacting Social Security directly. The form is useful because it puts the retirement date, estimated MAGI, filing status and supporting evidence in one package.
What the Form Cannot Fix
A lower income alone is not enough. The reduction must follow one of the qualifying events listed by Social Security, including marriage, divorce or annulment, death of a spouse, work stoppage, work reduction, certain losses of income-producing property, loss of pension income or a qualifying employer settlement.
A Roth conversion, voluntary property sale, large capital gain or required minimum distribution (RMD) does not qualify by itself. Those transactions may create a one-year income spike, but Form SSA-44 cannot remove properly reported income simply because it will not recur.Β IRMAA is one of several premium traps we mapped in a free Medicare guide.
Give Social Security the New Numbers
The IRMAA notice is the point to act, and three items make the request easier to process:
- Confirm the tax year, MAGI and filing status shown on the notice. If Social Security used the wrong return or incorrect filing information, that requires a correction rather than a life-changing-event request.
- Complete Form SSA-44 using work stoppage as the qualifying event. Enter the more recent MAGI estimate permitted by the instructions and attach proof of the June retirement.
- Submit the request online, by mail, by fax or through a Social Security office, then keep a complete copy. When the estimated yearβs return is filed, send Social Security the signed return it requested.
Her paycheck stopped in June. Form SSA-44 keeps it from lingering in her Medicare premium for another year.
Contact [email protected] for any questions or corrections.
Gerelyn Terzo is the author of dividend investing handbook "Dividend Investing Strategies: How to Have Your Cake & Eat It Too." A veteran financial journalist, she covers agri-finance for outlets like Global AgInvesting and the broader stock market and personal finance for 24/7 Wall Street. She began at CNBC and later helped launch Fox Business in New York. Gerelyn currently resides in Woodland Park, Colorado and dabbles in nature photography as a hobby.
