I'm on medicare and social security pays my medicare premiums out of the social security check. The amount of the health care expense is in excess of my business profit. My question is: what happens to the remainder of that expense...is it just "lost"as a potential benefit. Additionally, would it be better just to NOT take the business expense and leave the whole amount on the social security benefits page (which indicates the amount paid for the health care expense).
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The additional medical expense is automatically included in your medical expenses on Schedule A. Only medical expenses in excess of 7.5% of your Adjusted Gross Income (AGI) are deductible. In addition, medical expenses are an itemized deduction. They will not reduce your tax or increase your refund unless your total itemized deductions are more than your standard deduction.
It's generally better to take the self-employed health insurance deduction because it directly reduces your taxable income dollar for dollar. It is not subject to the 7.5% of AGI threshold, and you get the self-employed health insurance deduction even if you use the standard deduction because it's more than your itemized deductions.
The additional medical expense is automatically included in your medical expenses on Schedule A. Only medical expenses in excess of 7.5% of your Adjusted Gross Income (AGI) are deductible. In addition, medical expenses are an itemized deduction. They will not reduce your tax or increase your refund unless your total itemized deductions are more than your standard deduction.
It's generally better to take the self-employed health insurance deduction because it directly reduces your taxable income dollar for dollar. It is not subject to the 7.5% of AGI threshold, and you get the self-employed health insurance deduction even if you use the standard deduction because it's more than your itemized deductions.
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