Self-employed medicare deduction and taxable income

Deducted medicare premiums on Schedule C.  Subtract them from Social Security Income when putting in income?

Retirement tax questions

If you deducted your Medicare premiums on your Sch C, do not include those amounts as Medicare premiums paid when entering your social security income. 

Retirement tax questions

Thank you for quick reply

Was curious.  No mention of this Pub 915. For folks not self-employed, they report all SS income then deduct non medicare premiums over 7.5%.  So was concerned about deduct medicare from SS in income then deduct premiums from business.  Cannot find IRS docs on this.

Retirement tax questions

Just to be clear.  You do enter and report the full SSA-1099 box 5 on your tax return.  You don subtract any amounts from it.

 

You just don't enter the Medicare on the same input screen.    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.

 

And the health ins deduction does not actually show up on schedule C.  Self-employed health insurance deduction goes on Form 1040 Schedule 1 line 29, 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 Schedule 1 line 29, and the remainder gets added in to medical expenses on Schedule A.

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Retirement tax questions

Thank you Volvo Girl,

Needed the step by step as first time with medicare/ss/self-employed.  Very helpful.  

Retirement tax questions

Yes.  Deducting those premium payments in both areas would be “double dipping “.