I got Medicare at 65 and I am still working. I am paying my Medicare out of pocket because I have not retired. Can I deduct my Medicare premiums?

[xmasbaby0]

Yes, you can enter any out of pocket medical premiums you paid as a medical expense.

MEDICAL EXPENSES

The medical expense deduction has to meet a rather large threshold before it can affect your return. The amount of medical (including dental, vision, etc.)  expenses that will count toward itemization is the amount that is OVER 7.5% of your adjusted gross income. You should only enter the amount that you paid in 2025—do not include any amounts that were covered by insurance or that are still outstanding.  Of course, your medical expenses plus your other itemized deductions still have to exceed your standard deduction before you will see a difference in your tax due or refund.

To enter your medical expenses go to Federal>Deductions and Credits>Medical>Medical Expenses

2025 STANDARD DEDUCTION AMOUNTS

SINGLE $15,750  (65 or older/legally blind + $2000)

MARRIED FILING SEPARATELY $15,750  (65 or older/legally blind +1600)

MARRIED FILING JOINTLY $31,500  (65 or older/legally blind + $1600)

HEAD OF HOUSEHOLD $23,625 (65 or older/legally blind + $2000)

[MaryK4]

Yes, your Medicare premiums are tax-deductible as qualified medical expenses, but how you claim the deduction depends on whether you are an employee or self-employed. 

If You Are an Employee (W-2), you can deduct Medicare premiums only if you itemize deductions on Schedule A.  You can only deduct the portion of your total medical expenses (including premiums, copays, and deductibles) that exceeds 7.5% of your Adjusted Gross Income (AGI).  Since you are over 65, your standard deduction is higher (especially with the new 2025 Enhanced Senior Deduction). You should only itemize if your total itemized deductions (medical, mortgage interest, etc.) are greater than your standard deduction. 

If You Are Self-Employed, and have a net profit from a business (including consulting or side work), you may qualify for the Self-Employed Health Insurance Deduction.  This is taken on Schedule 1, meaning you do not have to itemize or meet the 7.5% threshold to claim it.

NOTE: You cannot take this deduction if you were eligible to participate in a subsidized health plan offered by your employer or your spouse's employer, even if you chose not to enroll.