topic Are medicare premiums deductible in my business? in Deductions & credits

Are medicare premiums deductible in my business?

billlouise — Fri, 26 Jun 2020 21:28:26 GMT

are medicare premiums deductible?

Re: Are medicare premiums deductible in my business?

VolvoGirl — Fri, 26 Jun 2020 21:38:49 GMT

Yes if you paid them.

Medicare plan B payments are qualified as Self-employed medical insurance premiums and should be entered under Business instead of in the Social Security Benefits entry area. So go back and take it off your SSA-1099 entry.

Re: Are medicare premiums deductible in my business?

Hal_Al — Fri, 26 Jun 2020 22:25:13 GMT

As a self employed person, your medicare premiums qualify for the "Self-employed health insurance deduction" on line 16 of Schedule 1 (technically an adjustment to income).

You may not take a deduction (for medicare or other health insurance for you or your family) directly on Schedule C (business income and expenses). That is, it is still a personal deduction, not a business deduction. It cannot reduce you net profit for purposes of the Self Employment Tax.