Self employed, retired, deductions

[howardbirenbaum]

Still a bit uncertain.

I was employed and covered by my employer until March 2020.

Now self-employed, my wife assists me.  Both on Medicare.  File Schedule C.

Can we deduct our costs for Medicare Part B, Medicare Part D, and Medicare Supplemental Plan F? 

They are a chunk of change.  Hope I can deduct as expenses against my business income.

Thanks in advance!

howardbirenbaum

[RayW7]

Medicare premiums are an allowable deduction if you're self-employed, and there are two ways to do this.

The first is with the self-employed health insurance deduction. When you enter the expenses related to your self-employment, enter your Medicare premiums in the Less Common Expenses section (not the SSA-1099 section). This deduction will show up on Schedule 1, line 16.

To qualify, your Schedule C must show a net profit; this deduction isn't available if it shows a net loss.

Also, 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.

And that brings us to the second option. If you're unable to take the self-employed health insurance deduction for the reasons mentioned above, you may be able to deduct your Medicare premiums as a regular medical expense if you itemize (Schedule A). See this article for instructions.

[howardbirenbaum · Accepted solution]

Dear RayW7,

Thank you for your prompt reply!

What about Supplemental Medicare Plans?

Like Plan F for Part B supplemental?

Plan D for drugs?

Separately purchased dental plan from Blue Cross?

Thanks, again!

howardbirenbaum

[Irene2805 · Accepted solution]

The premiums you pay for additional coverage, like the Medicare Supplement, Plan D and dental can all be handled the same way that RayW7 explained.