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Medicare Tax Deductions

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DOWNLOAD the 2022 IRS Tax Info Sheet
Medicare Tax Deductions: 
If you are on Medicare and looking for ways to minimize your tax bill, here’s what you need to know about Medicare premiums and income tax.  Birdseye Financial does NOT offer or give any tax advice.  We are merely sharing information from various respected resources.  ​

YOU SHOULD ALWAYS TALK WITH A TAX PROFESSIONAL.
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Are My Medicare Premiums Tax Deductible?
Tax Deductions Answer:  Maybe!  
The rules for deduction depend on your specific circumstances, including your income and employment status. Your income, possible deductions and other circumstances can also affect which Medicare premiums you’re able to deduct.

In general, you can deduct:
  • Medicare Part A premiums. After age 65, most people get Medicare Part A without paying a premium.  As a result there isn’t anything to deduct. If you do pay a Part A premium and aren’t getting any Social Security benefits, you can deduct the premium.
  • Medicare Part B premiums. Medicare Part B premiums are tax deductible as long as you meet the income rules.
  • Medicare Part C premiums. You can deduct any Medicare Part C premiums if you meet the income rules.
  • Medicare Part D premiums. As with Parts B and C, you can deduct your Part D premiums if you meet the income rules.
  • Medicare Supplement insurance (Medigap). Medigap premiums can also be tax deductible.

You can deduct medical expenses only if you itemize deductions and only to the extent that total qualifying expenses exceeded 7.5% of AGI (adjusted gross income).

Do You Itemize Deductions?  
The Tax Cuts and Jobs Act nearly doubled the standard deduction amounts for 2018 through 2025.  As a result, fewer individuals are claiming itemized deductions. If you have significant medical expenses, including Medicare health insurance premiums, they may add up to enough that it will be advantageous to itemize deductions and collect some tax savings.

What Documents Do You Need To Deduct Medicare Premiums?
Tax Deductions Answer:  SSA-1099
Most people have any Medicare Part A and Part B premiums deducted from their Social Security benefit.  If you do, you will receive a form each year called SSA-1099. The SSA-1099 statement will show the premiums you paid for Part B, and you can use this information to itemize your premiums when you file your taxes.

In addition, you will receive a form from Medicare called a Medicare Summary Notice.  This lists all the services you received, what Medicare paid for them, and the amount billed to you.

Medicare sends you a summary notice every 3 months. If you have a myMedicare account, you can get the same information at any time.


Self-Employed - Are Medicare Premiums Tax Deductible?
Tax Deductions Answer:  Yes!
  • If you are self-employed you can generally deduct the premiums you pay for Medicare Part B and Part D.  Plus, you can deduct the cost of a Medicare Supplement (Medigap) policy or the premiums paid for a Medicare Advantage policy.
  • You are considered self-employed if you own a business that earns income, even if you’re a sole proprietor.

So, for example, if you’re doing freelance consulting work in retirement, you could deduct your Medicare premiums pretax. If your business didn’t earn you any income, though, you can’t deduct your benefits pretax.

This deduction is available whether or not you itemize.  It is NOT subject to the 10% test of AGI (adjusted gross income) that applies to medical expenses.

One caveat pointed out by Kiplinger’s: You can’t claim this deduction if you are eligible to be covered under an employer subsidized health plan offered by either your employer (if you have retiree medical coverage, for example) or your spouse’s employer (if he or she has a job that offers family medical coverage) on for their health insurance premiums, including Medicare premiums. So, they don’t need to itemize to get the tax savings from their premiums.


What Other Expenses Can Help You Meet The Deductible Limits?
In addition to your Medicare premiums, and Medicare insurance premiums, you can deduct various medical expenses.  They include:
  • Deductibles, co-pays, coinsurance, non-covered services
  • Hospital, hospice, or skilled nursing care
  • Outpatient services including doctor visits, ambulance rides, and diagnostic tests
  • Prescription medications
  • Dental and vision care (including dentures, eye exams and eyeglasses)
  • Hearing aids and preventive care
  • Home modifications necessary to keep you safe

Only expenses that you actually pay out-of-pocket count toward the itemized deductions. In other words, if you have a $15,500 hospital bill, and Medicare pays all but $1,200 of it, only the $1,200 that you pay for your care can be itemized on your return, not the entire $15,500 bill.

​If you go by car for Medicare care, you can deduct a flat per-mile rate (Changes yearly) or you can keep track of your actual out-of-pocket expenses for gas, oil and repairs.
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Birdseye Financial Services
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136 Hillside Drive E
Burleson, TX 76028

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Client Resources
Main # 360-722-7889
Texas # 817-717-1487
Fax #425-412-6865

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[email protected]

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CLICK TO READ OUR FULL DISCLOSURE
The information contained herein: (1) is proprietary to Birdseye Financial Group and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Any information herein about providers, speakers, and services does not constitute a recommendation or endorsement. This material is not to be distributed without the express written consent of Birdseye Financial. Regarding your financial situation, you should consult with a financial professional before acting on specific actions or suggestions given. For legal or tax advice, you should contact your qualified attorney or CPA. Insurance and tax planning services are offered through Birdseye Financial. Investing involves risk, including the potential loss of principal. No market investment strategy can guarantee a profit or protect against loss during declining values. ​Fiduciary Investment Advisory Services are offered through Simplicity Asset Management, an SEC-Registered Investment Advisor. Registration does not denote any level of skill or qualification.

MEDICARE MANDATORY DISCLAIMER
“We may not offer every plan available in your area. ​Please get in touch with Medicare.gov, 1-800-MEDICARE, or your local State Health Insurance Program (SHIP) to get information on all your options.” All calls regarding Medicare may be recorded by phone or online and a SCOPE of appointment required by Medicare will be obtained 48 hours before any sales meeting to discuss plan details. (NOTE - The organizations and plans can vary by state and county, we can validate these numbers upon request.)

State Licenses
LICENSES: AZ #7101306, CA #4140429, FL #W825259, GA #3621424, ID #863617, KS #7101306, MA #2176921, NV#3879853, NC #7101306, OK #3001663224, OR #7101306, TX #2695866, WA #190780. Note that in California, our DBA is Birdseye Financial and Insurance Services. The current license status may increase or decrease without being updated on this site. ​If you have any questions, please don't hesitate to ask.
  • Home
  • About
    • Who We Are >
      • Explore More
    • Corbin Lindsey, Advisor
    • Our Reviews
    • Get Started
    • Risk & Portfolio Assessment
    • Request Free Consultation
  • Strategies
    • Key Components
    • Sequence of Returns
    • Volatility Buffer >
      • Volatility Buffer Webinar
    • Tax Strategies >
      • Tax Free Income
      • RMD Calculator
      • IRA RMD RULES
      • ROTH IRA
      • ROTH Conversion
      • Tax Declassified Webinar
      • Qualified Charitable Donation
      • Business Tax Credit
    • Inflation Impact
    • Educational Videos >
      • Documentaries
      • Educational Webinars >
        • Taxes Declassified
        • Top 10 IRA Mistakes
        • Taxes in Retirement
        • 3 Economic Strategies
        • Five Key Areas of Retirement
    • Recommendations >
      • ROTH Conversions
      • Volatility Buffer
      • Tax-Free Income
      • Wealth Transfer
    • Premium Finance
  • Planning
    • Retirement Analysis >
      • RA Sample
    • Social Security >
      • Social Security Webinar
    • Pension Maximization
    • Risk Analysis and Investments
    • LifePro Asset Management >
      • Questionnaire
    • Estate Planning
    • Federal Benefits >
      • Federal Benefit Kit
    • WA Retirement Systems
    • Boeing Retirement >
      • Boeing Webinar
      • Boeing Download
      • Boeing Calendar
      • Boeing Retirement
    • Business Planning >
      • Tax Free Multiplier
      • Business Tax Credit >
        • Resources
      • Employee Retention Tax Credit
      • Research & Development Tax Credit
  • Insurance
    • Annuities >
      • Annuity Resources
      • Market Index Links
      • Annuity Report
      • Annuity Reviews
    • Medicare >
      • Medicare Questionnaire
      • Medicare Clients
      • Medicare Plan Compare
      • Medical Networks
      • Medicaid Info
      • PEBB Benefits >
        • 2024 PEBB Retiree Guide
      • Medicare A&B
      • Medicare Rules
      • Medicare Meetings
      • Medicare Education
    • Long-Term Care
    • Life Insurance >
      • Multi-Generational
      • Premium Finance
      • Final Expense
    • Health Insurance
    • Dental Insurance
    • Vision Insurance
  • Tools
    • Financial News Blog
    • Market Simulations
    • Required Minimum Dist (RMD Calculator)
    • Interest Types
    • Calculators
    • Professional Referrals >
      • Dead Doctors Don't Lie
    • Bankrate Interest Rates
    • Rate of Return Calculations
    • Zillow Home Value
    • Credit Info
  • Contact
    • Free Consultation
    • Schedule Appointment
    • Online Meeting
    • Secure Upload
    • Retirement Analysis (initial)
    • Retirement Software Client Portal
    • New Application
    • Application Process
    • Beneficiary Form
    • Client Resources
    • Phone App
    • Rate our Service
    • Refer a Friend