My wife and I are subject to IRMAA adjustments in addition to the regular Medicare premiums. Are these adjustments deductible?

[fanfare]

medicare part B premiums deducted from your benefits are deductible.

[dmertz]

Medicare premiums can be claimed on Schedule A line 1 as medical expense.

[dspisak]

I understand the premiums are deductible.  Are the IRMAA adjustments also deductible?

[dmertz · Accepted solution]

The entire premium is deductible, including the part of the premium that represents the IRMAA adjustment.  IRMAA simply means that you pay a higher premium.  It is not a payment separate from the Medicare premium.  (In the case of the Part D premium, the IRMAA adjustment simply means that your Part D premium is more than $0.)

[bricxjo]

I am in a similar situation owing Part B and Part D IRMAA.  However, the answer given is incomplete, because it doesn't consider the case where the SSA-1099 does not reflect the full premium cost, as per the following situation:

My wife's Social Security income is minimal and LESS than the standard Part B premium + IRMAA owed, so the entire amount of her benefit is used up for just part of the total Part B premium.  The balance of Part B is paid by us out-of-pocket, and it is NOT reflected anywhere on the SSA-1099, because that form just shows her total benefit equal to the premiums deducted--which doesn't reflect the excess premium we paid out-of-pocket in order for her to be enrolled in Medicare.

In addition, the entire Part D IRMAA is paid separately, and it is also NOT reflected on her SSA-1099 at all.

The above excess premiums due to IRMAA were paid by separate checks, and I do not see where to put them into TurboTax!  If the entire premium is deductible, but the excess over the total Benefits is not shown on an SSA-1099, where should the excess be deducted?

In some answers I read, the suggestion was to deduct Medicare premiums on Schedule A, which is where the information from the SSA-1099 goes, but when I tried editing Schedule A directly, TurboTax just sent me to the Social Security Benefits Worksheet, where I did not see how to enter the amount that exceeded the amount on the SSA-1099.

So the question is: how do I enter the excess?  Should I just put it in under Line 11 on the Medical Expenses Worksheet: Other Medical and Dental Expenses?  I think TurboTax should have a way to put in the excess premium expenses.

[dmertz]

The original answer didn't address where to enter Medicare payments not paid out of Social Security benefits because that wasn't the question that was asked.

Whatever portion is shown in Medicare Premiums boxes of the SSA-1099 box is automatically included on Schedule A.  The portion paid separately would be entered under Deductions & Credits -> Medical -> Medical Expenses -> How much did you spend on insurance premiums?  (On Schedule A there is no breakdown of the various types of medical expenses, they are all lumped together, so you can generally enter any type of medical expense in any type of the TurboTax box that asking for medical expenses.  The breakdown is for your personal recordkeeping.)

[EddyH]

Related question. My sub-S corp reimburses my owner health insurance premiums (including Medicare).

Due to late processing of the 2020 return, the IRMAA adjustment for 2022 was only on an estimated basis. A final adjustment was determined in Dec 2022, and will be deducted from my Jan 2023 Social Security Check.

Query: to which tax year does the final adjustment apply and in which tax year should the corresponding owner reimbursement apply?

[Critter-3]

Paid in 2023 ... deduct in 2023.

[dwk20]

Income Related Monthly Adjustment Amount is an add-on tax based on income; so, to me, it is not buying healthcare.  I'm putting it on schedule A under "other taxes". 

The IRS website has no guidance for handling IRMAA.

The 2024 Home & Business TurboTax only entered my wife's Medicare charge as a medical deduction, not the added IRMAA from Social Security 1099-SA for medical expenses on Schedule A

Likewise, TurboTax only entered the Medicare charge without the IRMAA from my 1099-R.

[BillM223]

dmertz gave the answer above:

The entire premium is deductible, including the part of the premium that represents the IRMAA adjustment.  IRMAA simply means that you pay a higher premium. 

And where do you enter it?

Whatever portion is shown in Medicare Premiums boxes of the SSA-1099 box is automatically included on Schedule A.  The portion paid separately would be entered under Deductions & Credits -> Medical -> Medical Expenses -> How much did you spend on insurance premiums?  (On Schedule A there is no breakdown of the various types of medical expenses, they are all lumped together, so you can generally enter any type of medical expense in any type of the TurboTax box that asking for medical expenses.  The breakdown is for your personal recordkeeping.)