Self employed Medicare Deduction if disabled

[dvdgarofalo]

I understand that someone on social security who is self employed can deduct their Medicare B premiums.

Is the same true if someone is on social security dissability and is self employed? Will IRS distiquish them as different?

Thank you in advance.

[VolvoGirl]

It's not really different.  They both come on a SSA-1099 Form.  Self-employed health insurance deduction goes on Schedule 1 line 17 (which goes to 1040 line 10), as long as the expense is not greater than your net self-employment income. If it does exceed your net self-employment income it gets split automatically. An amount equal to your net self-employment income goes on Schedule 1 and the remainder gets added in to medical expenses on Schedule A. It will not reduce any SE Tax on a net profit. It just reduces your AGI. 

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[VolvoGirl]

Medicare plan B payments are qualified as Self-employed medical insurance premiums and should be entered under Business instead of in the SSA-1099 Social Security Benefits section.

[dvdgarofalo]

Thanks much.

Does it matter whether the benefits are recieved as a result of retirement or dissability? I assume IRS views them as teh same as both are on the ssa1099.

[rjs]

No, it doesn't matter. The self-employed health insurance deduction has nothing to do with the type of Social Security benefits. It's just Medicare Part B premiums that you paid. The fact that you paid the premiums by having them deducted from your Social Security benefits is irrelevant. So the type of benefits doesn't matter.

[rjs]

You get the self-employed health insurance deduction because you are self-employed, not because you get Social Security benefits. You would get the deduction whether or not you got Social Security. The Social Security benefits have nothing to do with the self-employed health insurance deduction. That's why the type of benefits doesn't matter.