Can I deduct the premiums I pay for my Medicare Supplement Plan?

[xmasbaby0 · Accepted solution]

Yes, if you are itemizing your medical expenses, you can deduct your premiums for your supplemental insurance.  If you are getting Social Security benefits, then the amount deducted from your SS for Medicare already flows directly from your SSA1099 to the medical expense section, so do not re-enter Medicare.

The medical expense deduction has to meet a rather large threshold before it can affect your return. The amount of medical expenses that will count toward itemization for someone under 65 is the amount that is OVER 10% of your adjusted gross income; for someone 65 or older it would be the amount over 7.5% of your AGI.  

You should only enter the amount that you paid in 2016—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

[Davco127]

"Medicare already flows directly from your SSA1099 to the medical expense section"  WTH... Could someone please clarify what this means..

[VolvoGirl]

It means when you enter a SSA-1099 you get for ss or SSDI benefits and enter the Medicare part B Deduction - the Medicare premium that was deducted automatically goes to your Schedule CA medical deductions.  So you don't have to enter it again under Deductions.    Does that clear it up?

Oh, but if you are self employed you do not enter the Medicare part B Deduction on the SSA-1099 entry screen but under self employment because it can be deducted against your business Net Profit.