Medicare Premiums Deduction

Forum|Forum|4 years ago
March 14, 2022
1 reply
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Are Medicare Premiums that my wife and I have paid considered deductible if we itemize?

If we don't itemize and take the standard decuction, can the Medicare Premiums paid be used as a deduction on our State income taxes? Idaho

We are not taking social security yet.

Thank You,

Best answer by JulieS

Yes, the Medicare premiums are deductible as medical expenses.

If you are collecting Social Security, the amount will automatically transfer from your SSA-1099 entry.

Since you are not drawing Social security yet, you can enter the amount directly in the Medical deductions section.

Select Federal from the left side menu.
Select Deductions and Credits toward the upper left.
Expand the list and scroll down to Medical Expenses.
Click Continue until you get to the screen titled, How much did you spend on insurance premiums?
Look for Medical insurance premiums, enter your amount and Continue.

JulieSAnswer

Yes, the Medicare premiums are deductible as medical expenses.

If you are collecting Social Security, the amount will automatically transfer from your SSA-1099 entry.

Since you are not drawing Social security yet, you can enter the amount directly in the Medical deductions section.

Select Federal from the left side menu.
Select Deductions and Credits toward the upper left.
Expand the list and scroll down to Medical Expenses.
Click Continue until you get to the screen titled, How much did you spend on insurance premiums?
Look for Medical insurance premiums, enter your amount and Continue.

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bgoldnyxnet

Employee

My wife is a sole proprietor of two small magazines. Can she treat her Medicare part B, Medigap, and Part D premiums as business expenses (like employee health insurance)?

Can she do that with my premiums, and if so what is necessary for her to treat me as an employee for that purpose?

DawnC

Employee

Yes, Medicare policies count for the Self-Employed Health Insurance Deduction (SEHID). She can take the self-employed health insurance deduction for herself, spouse and dependents if her business Schedule C shows a profit and no one was eligible to participate in an employer-based health insurance plan. See - Medicare and the Self-Employed Health Insurance Deduction. The deduction is limited to net business profit reported. Anything that can't be included as a self-employed deduction can be claimed as an itemized medical deduction on Schedule A. @bgoldnyxnet

Since you are her spouse, you don't need to be employed by the business. Any health insurance policies should be in her name or the name of the business to deduct as a SEHID. However, Medicare does not have group policies, only individual policies. The IRS has recently ruled that Medicare recipients who have self-employment income may deduct the premiums they pay for Medicare coverage the same as the premiums for any other type of health insurance.

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