Medicare Premiums
Many people who receive Medicare pay extra premiums to get extra Medicare coverage. Any payments you make for coverage are considered medical expenses that can be deducted on Schedule A as itemized deductions if your total medical expenses are more than the 7.50% threshold for medical expenses. The reality is few people can deduct medical expenses because of the 7.50% threshold. But if you have self-employment income, you can deduct the Medicare premiums you paid as self-employed health insurance.
If you had Medicare premiums deducted (withheld) from your Social Security benefits, the FreeTaxUSA software will gather those on the Social Security Income screen and flow the Medicare premiums deducted into the itemized medical expenses section to see if you qualify for an itemized deduction for medical expenses.
Any Medicare premiums you paid or had withheld are eligible for a tax deduction whether it's Medicare Part A, Part B, Part C, or Part D. However, Medicare taxes withheld from wages and shown on your W-2 aren't eligible for a tax deduction. Only Medicare premiums paid are eligible.
If you had Medicare premiums deducted (withheld) from your Social Security benefits, the FreeTaxUSA software will gather those on the Social Security Income screen and flow the Medicare premiums deducted into the itemized medical expenses section to see if you qualify for an itemized deduction for medical expenses.
Any Medicare premiums you paid or had withheld are eligible for a tax deduction whether it's Medicare Part A, Part B, Part C, or Part D. However, Medicare taxes withheld from wages and shown on your W-2 aren't eligible for a tax deduction. Only Medicare premiums paid are eligible.
