Deduct Medicare premiums as a business expense if self-employed?

Forum|Forum|1 year ago
February 4, 2025
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I am a self-employed sole proprietor with no employees and enrolled in Medicare last year. I have seen conflicting information as to whether Medicare premiums can be taken as a business expense, or must rather be taken as part of the self-employed health insurance deduction. If Medicare premiums can be taken as a business expense, where on Schedule C would they be entered? Line 15 is out, since the line itself states "Insurance (other than health)," and the IRS instructions for line 14 state "Do not include on line 14 any contributions you made on your behalf as a self-employed person to an accident and health plan. However, you may be able to deduct on Schedule 1 (Form 1040), line 17, the amount you paid for health insurance...." So how can Medicare premiums be taken on Schedule C?

Best answer by Bsch4477

You can deduct your Medicare premium but not on Schedule C.

enter the insurance premiums, you will do as follows:

Go to the Business category.
Go to the Business Income and Expense subcategory.
Choose the option "I'll choose what I work on"
On the screen labeled "Let's gather your business info", find the section labeled "Less Common Business Situations".
Click start or update next to the line labeled Self-employed Health Insurance.
Be sure not to include those premiums when reporting your social security since you can’t use the same expense for a medical expense deduction on Schedule A. Note that you can also deduct medicare premiums paid for your spouse. However, if you or your spouse have access to an employer-subsidized health insurance plan through a job—even if you choose not to enroll—you're not eligible for this deduction.

Bsch4477Answer

Employee

You can deduct your Medicare premium but not on Schedule C.

enter the insurance premiums, you will do as follows:

Go to the Business category.
Go to the Business Income and Expense subcategory.
Choose the option "I'll choose what I work on"
On the screen labeled "Let's gather your business info", find the section labeled "Less Common Business Situations".
Click start or update next to the line labeled Self-employed Health Insurance.
Be sure not to include those premiums when reporting your social security since you can’t use the same expense for a medical expense deduction on Schedule A. Note that you can also deduct medicare premiums paid for your spouse. However, if you or your spouse have access to an employer-subsidized health insurance plan through a job—even if you choose not to enroll—you're not eligible for this deduction.