Part B Medicare premiums paid out of SS

Forum|Forum|1 year ago
March 23, 2025
1 reply
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Wife and I file jointly. We paid SS premiums. I am a sole proprietor of a business. When I entered my business information and deductions the TT guide said to enter my SS premiums in my expenses for both of us. When I checked my income entries, it has the SS premiums populated automatically there also. I assume I am getting a double deduction for the payments because it shows double the amount when I review our return. Which place should I enter the payments? Can I split the payments between my business and the income section - my wife's in one and mine in the other? I do not want to create a red flag entry.

TurboTax Home & Biz Windows

Best answer by Mike9241

In 2012, the IRS ruled that Medicare insurance premiums can be counted. Under the ruling, Medicare premiums covering the self-employed individual – as well as his or her spouse, dependents, and under-age-27 children – are deductible as SE-health insurance. the deduction will be limited to net Self-employment income.

There are warnings on the page where the Social Security income is entered. If self-employed do not enter Medicare premiums types B, C and D here. Enter them on the business activity schedule in the section for self-employed health insurance. (Do not enter on schedule C on the line for insurance)

Mike9241Answer

USMC2021Author

Thank you for the response. Entering our Medicare part b in my self employment will only use about 70 percent of our Medicare premiums. Does the unused portion carry over to next tax year? I would surmise the answer is "no", but thought I would ask.

VolvoGirl

Employee

No it doesn’t carryover. If your health ins exceeds your net self-employment income it gets split. An amount equal to your net self-employment income goes on Form 1040 Schedule 1 line 17 (to 1040 line 10) and the remainder gets added in to medical expenses on Schedule A.

Medicare plan B payments are qualified as Self-employed medical insurance premiums and should be entered under Business instead of in the Social Security Benefits entry area. So go back and take it off your SSA-1099 entry.