topic Self Employed Medicare deduction in Deductions & credits

Self Employed Medicare deduction

ibonnie — Thu, 25 Mar 2021 00:51:00 GMT

I am self-employed and on Medicare. My husband was still working in 2020, and also on Medicare. When reading about the possibility of taking the Medicare premium deduction because of being self-employed, this paragraph was unclear to me:

"To qualify, if you (or your spouse if filing jointly) was eligible to participate in an employer's health plan during any given month – even if you declined the coverage – the premium you paid for that month cannot be claimed under this deduction."

My husband was eligible to sign us up for health insurance at his work but didn't because we are on Medicare. Does that mean I can't take the self-employment Medicare premium deduction (under other expenses)? Thanks for any help understanding this.

Re: Self Employed Medicare deduction

MaryK4 — Thu, 25 Mar 2021 01:10:03 GMT

Yes, unfortunately- for the self-employment health care deduction if either spouse has a health care plan available through an employer, you cannot take the deduction.

Re: Self Employed Medicare deduction

Mike9241 — Thu, 25 Mar 2021 01:22:37 GMT

the deduction is not allowed for any month that the self-employed individual is eligible to participate in any subsidized health plan maintained by any employer of the taxpayer or spouse.

two key phrases for which you will have to find the answer. could your husband cover you through his employer (not all employers have spousal coverage) and is the employer's plan subsidized (meaning that the employer covers part of the cost). if the answer to both is yea you don't qualify for the S-E health deduction. if the answer to either is no, you qualify but it is not a schedule C deduction. SE health insurance deduction (enter through schedule c questions) goes on schedule 1 line 16

if you qualify you can not only deduct your medicare premiums as S-E health insurance but also your spouse's medicare premiums per CCA 201228037 and IRC 162(l)

from the CCA If all the requirements of section 162(l) are satisfied, Medicare premiums may (also) be deducted
under section 162(l) for coverage of the self-employed individual's spouse