Question about deducting health insurance premium through my self employment. With my wife's retirement last year, she and I now pay premiums for our

[richmcln]

Since my wife's retirement last year, we now pay premiums for our medicare and our medicare supplement plans which are retirement benefits through our previous employers? Can I claims these payments as deductions from my part time business?

[DanielV01 · Accepted solution]

It depends.  There is a self-employment health care deduction which you may be able to claim, but it is not a direct deduction against self-employment income, but rather, is considered separately.  This is because the deduction does not reduce your self-employment tax, but does reduce your income tax.  Your out-of-pocket Medicare and medicare supplement premiums are deductible (as long as you are not covered by employer health coverage), up to the amount of self-employment income you report.