MAGI/IRMMA

[tjreilly1]

I am estimating 2026/2027 MAGI for the purpose of reducing IRMAA, SSA-44. Due to an upcoming retirement, June 2026, annual income will be significantly reduced, lower W2 income in 2026 and no W2 income in 2027, married filing jointly.

The amount used to determine MAGI was taken from Line 11 on the 2024 1040 tax form. This amount is the sum of several items including Capital Gain or Loss, line 7.

My questions are: does line 7 on the 1040 include a net figure for Capital Gains and Losses? If there are an equal amount of losses to counter the gains, would line 7 add nothing to line 11? If losses are greater than gains, could the residual loss reduce other items such as Taxable Interest and Ordinary Dividends?

[Bsch4477]

Line 7 is the net capital gain or loss. 

[VolvoGirl]

Yes line 7 is the NET of gains and losses.   But If you have a net loss for the year you can only deduct 3,000 (1,500 MFS) max on your tax return.  The rest you have to carryover to next year.  You have to report the carryover every year until it's used up.  You can't skip a year.

And you know….

IRMAA is based on your MAGI from two or three years ago.  MAGI for IRMAA is simply Adjusted Gross Income (AGI) plus tax-exempt interest.  For example, your IRMAA for 2026 will usually be based on your 2024 tax return.

[SteamTrain]

Your MAGI, for IRMMA purposes, also adds in your 1040 line 2a tax-exempt interest.....that line 2a value is not included in line 11.