Are Medicare premiums considered gross income and if so, are they taxable? Trying to figure out if I can claim my disabled parent.

[freddo11]

Parent made under $7,500 from SSI in 2020, is THIS also taxable income?

[fanfare]

enter the tax documents you got exactly as they appear under the right SSN, and you will get the correct result.

[xmasbaby0 · Accepted solution]

First----you need to distinguish between Social Security and SSI---the are not the same thing---so which are you asking about?  People often use the term "SSI" when they really mean Social Security benefits.   It will make a difference in how we can answer you.

WHAT IS THE DIFFERENCE BETWEEN SOCIAL SECURITY BENEFITS AND SSI?

https://www.ssa.gov/ssi/text-over-ussi.htm

If your parent receives Social Security they get a SSA1099 in January.   Social Security does not count as income if you are trying to figure out if you can claim your parent as a dependent.  Medicare has nothing to do with it.  Medicare premiums are money that is taken OUT of the person's Social Security--it is not taxable income.

If your parent qualifies to be a "qualifying relative" you get a $500 credit for other dependents which can lower your own tax bill.   You do not get stimulus money for claiming your parent, nor will your parent receive stimulus money, since dependents do not qualify for stimulus checks.  So be very sure you understand the criteria before you claim your parent as a dependent.

CREDIT FOR OTHER DEPENDENTS

https://ttlc.intuit.com/questions/4499708-what-is-the-500-credit-for-other-dependents-family-tax-cre...

[freddo11]

Thank you for your time!

[DavidD66]

Supplemental Security Income (SSI) payments, are not taxable.  As for Medicare premiums, they are something that you 

States pay the Medicare premiums for people who receive SSI benefits if they are also eligible for Medicaid.  This is not taxable income. If you get SSI and have Medicare, you will also be eligible for Extra Help with Medicare Prescription Drug Coverage without filing a separate application.

For more information, see Understanding Supplemental Security Income SSI and Other Government Programs -- 2020 Edition