In this guide 5 sections
A home sale can create a one year income spike, followed by a Medicare Part B income surcharge called IRMAA. The surcharge is not necessarily permanent, but it also does not automatically disappear based only on the date of the sale.
When should the higher premium drop?
Social Security normally uses modified adjusted gross income from two years before the premium year. This means the surcharge is recalculated as newer tax years become available. If income was high for only one tax year, the surcharge will generally affect one premium year once Social Security reaches that tax year, then fall when the next lower income year is used. The result still depends on the income information and thresholds for that premium year.
Can Social Security use this year’s lower income?
Sometimes. Social Security can use a more recent tax year when a listed life changing event caused a significant income reduction, the person asks for a new determination, and the required evidence is provided.
Which events qualify?
The listed events include the death of a spouse, marriage, divorce or annulment, stopping work, reducing work hours, certain involuntary losses of income producing property, certain pension plan changes, and certain employer settlements.
What should you do now?
- 1.Keep the Social Security IRMAA notice and check which tax year and filing status it used.
- 2.Check whether a listed life changing event caused the lower income. Pay special attention to stopping work or reducing work hours.
- 3.If a listed event applies, ask Social Security for a new initial determination based on more recent income and provide the required evidence.
- 4.If the IRS income or filing status used by Social Security is wrong, gather proof from the IRS and use the review rights described in the notice.
What does the increase cost in 2026?
The standard Part B premium is $202.90 per month in 2026. Depending on income and tax filing status, the total 2026 Part B premium can range from $284.10 to $689.90 per month for someone with full Part B coverage who owes IRMAA.
Questions families ask
Does a one time income spike raise the Part B premium forever?
No. Social Security normally bases each premium year on income from two years earlier, so the surcharge is recalculated as newer tax information becomes available.
Does selling a house count as a life changing event?
The sale itself is not listed as a qualifying event. If another listed event occurred, such as stopping work or reducing work hours, ask Social Security whether a new determination can use more recent income.
What if Social Security used the wrong tax information?
A person may request a new initial determination by providing proof from the IRS that the income or filing status information was incorrect.
Should the IRMAA notice be kept?
Yes. The notice explains Social Security’s determination and the available appeal rights.
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