Medicare Premium

[FL2022]

Am Retired, but worked this year as an independent contractor, and did make a profit. Can I deduct my Medicare premiums off of Schedule C.  I get my medical insurance through my former employer at a reduced cost. Does this disqualify me, or am I okay because I am not a current employee?

[DaveF1006]

Yes, Medicare premiums made be deducted as self-employed health insurance premiums according to the Journal of Accountancy. Also, if you pay additional health insurance premiums at the reduced cost, you can deduct the reduced costs you paid as well.

[FL2022]

 Would it be considered an employer-sponsored subsidized health plan because my spouse and I are getting reduced premiums as a retiree, possibly making me ineligible for the self employed health care deduction?

[ColeenD3]

Self-employed health insurance deduction

• To get this deduction, your Schedule C must show a net profit.
• The deduction amount generally can't exceed your net profit amount.
• If you (or your spouse if filing jointly) were 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 can't be claimed under this deduction.
• Health insurance premiums you paid for your child, even if you aren't claiming them as a dependent, are eligible for this deduction as long as your child was age 26 or younger at the end of 2021.
• The self-employed health insurance deduction shows up on Schedule 1, line 17.

The IRS does not directly address what happens if it is an employer plan for a non-employee. One factor would be if it was pretax or after-tax money. You can't take any pretax deduction, even on Schedule A. Here is a link for a further discussion.

Self-employed health insurance 

[Edited 4/1/2022| 6:23 AM PST]

[Joejoe]

I pay insurance premium for Original Medicare. Can this be filed

[DawnC]

Whether you can deduct your Medicare costs depends on your situation.

• Medicare Part A premiums are deductible if you aren't covered under Social Security, you aren't a government employee who paid Medicare tax, and you voluntarily enrolled
• Medicare Part B, C, and D premiums are deductible

Can I deduct Medicare premiums?

Can I and where do I deduct medical expenses?

@Joejoe