I am a 66 year old retiree and have 1 rental house that I rent out. I am on Medicare and also pay insurance premiums thru my former employer for my wife who is not 65 years old. I recently read an article that stated self-employed people (who earn a profit from their self employment) are allowed to deduct their health insurance premiums on Schedule 1 of the 1040 as an "above the line" deduction with means it lowers their AGI. Furthermore, it stated that since 2012, the IRS has allowed self-employed individuals to deduct all Medicare premiums (included premiums for Medicare Part B). According to this article, "you can only deduct your premiums as much as you earn from your business". I have the Turbo Tax Deluxe (Federal and State) version, and use that product to report my rental property income on Schedule E. When I tried to add the Medicare premium to Schedule 1, line 16, it doesn't seem to allow me to add my health care Medicare premiums expenses (unless I over ride it). Has anyone else that only uses Schedule E (and not Schedule C) to report rental income and is above 65 years old deducting self-employed health insurance? Thanks
Thanks everyone. I really appreciate your quick response. I was thinking that I needed to revise two years of taxes to take advantage of this deduction. Now my mind is at ease. Thanks again.