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Deducting medicare if self-employed

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tomseeley
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Cash: $ 2.85

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Joined: 01 Dec 2007

Deducting medicare if self-employed

I'm receiving Medicare and I'm self-employed. I have no group or employer-provided health ins plan. Until I started getting Medicare, I deducted my self-pay health ins costs as an adjustment to income, which reduce my AGI dollar for dollar.

So far the IRS has given me no grief (I'm well aware that's NOT the same as them TELLLING me it's ok).

Now that I'm paying for Medicare and for a separate Medicare Advantage plan, as long as I continue to be self-employed and continue to receive income on a Form 1099-MISC for 2009 and continue to file a Sch C with my 1040, can I continue to deduct Medicare and Medicare Advantage premiums as adjustments that reduce my AGI dollar for dollar?

Mon Dec 07, 2009 9:47 pm

coaster
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Joined: 11 Oct 2005
Location: Wisconsin

It's been a long time since I was self-employed, but I believe self-employed health insurance is deductible on Schedule C, and Medicare premiums are an allowed health insurance deduction. From the IRS website, Pub 502:

quote:
Medicare A

If you are covered under social security (or if you are a government employee who paid Medicare tax), you are enrolled in Medicare A. The payroll tax paid for Medicare A is not a medical expense.

If you are not covered under social security (or were not a government employee who paid Medicare tax), you can voluntarily enroll in Medicare A. In this situation you can include the premiums you paid for Medicare A as a medical expense.

Medicare B

Medicare B is a supplemental medical insurance. Premiums you pay for Medicare B are a medical expense. If you applied for it at age 65 or after you became disabled, you can include in medical expenses the monthly premiums you paid. If you were over age 65 or disabled when you first enrolled, check the information you received from the Social Security Administration to find out your premium.

Medicare D

Medicare D is a voluntary prescription drug insurance program for persons with Medicare A or B. You can include as a medical expense premiums you pay for Medicare D.