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February 19, 2020
Question

Deducting Medicare Part B premiums as a self employed business expense

  • February 19, 2020
  • 1 reply
  • 0 views

I am retired and receive subsidized health insurance through my former employer, but am now self employed. While I can't deduct those premiums as a business expense, can I enter my medicare part B premiums as as a self employed business expense? I have looked through several discussions about deducting health insurance premiums but can't find this specific answer.

    1 reply

    VolvoGirl
    Employee
    February 19, 2020

    Medicare plan B payments are qualified as Self-employed medical insurance premiums and should be entered under Business instead of in the SSA-1099 Social Security Benefits section.

     

    Go back and delete it from the SSA-1099 entry screen. Try going to the search box by My Account and type in Social Security Benefits. That will give you a Jump To link to take you directly to it.

    OR
    Enter a SSA-1099, SSA-1099-SM or RRB-1099 under
    Federal Taxes tab
    Wages and Income tab
    Choose Explore on my own or I'll choose what to work on (if it comes up)

    Then scroll down to Retirement Plans and Social Security
    Social Security (SSA-1099. RRB-1099) - click the Start or Update button

     

    Then under Business Expenses, Click Start or Update by Other common business expenses
    Then click Update by Insurance Payments
    Then click Update by Health Insurance Premiums

     

    Self-employed health insurance deduction goes on Form 1040 Schedule 1 line 16 (then to 1040 8a), as long as the expense is not greater than your net self-employment income. If it does exceed your net self-employment income it gets split automatically. An amount equal to your net self-employment income goes on Form 1040 and the remainder gets added in to medical expenses on Schedule A.

     

    cunninbwAuthor
    February 19, 2020

    So even though I get insurance through my former employer, and can't deduct what I pay for that, I can still deduct my Medicare B premiums? 

    VolvoGirl
    Employee
    February 19, 2020

    Yes.