Medicare - Tax Issues

Question 1

Are Medicare premiums deducted from SS payments tax deductible?

Answer 1

Medicare Premiums: If you collect Social Security benefits, you will likely find a line item on your Form SSA-1099 that reads “Medicare premiums deducted from your benefits.” This amount is deductible as a medical expense. Any Medicare premiums paid, whether reported on your SSA-1099 or not, are tax deductible on Schedule A.

Question 2

Which Medicare Premiums are taxable deductible?

Answer 2

All (Parts B, D, C and Medigap) are deductible as personal Schedule A deduction subject to the 7.5% floor.

Question 3

Which Medicare Premiums are taxable deductible for a self employed person?

Answer 3

All (Parts B, D, C and Medigap) are deductible as self employed insurance for sole proprietors, partners, and greater than 2% S Corp owners.

Question 4

Can one contribute to an HSA after enrolling in Medicare?

Answer 4

No. Once you enroll in Part A or Part B, you can no longer contribute to an HSA.

Question 5

Can an HSA be used to pay Medicare premiums?

Answer 5

Yes, for Part A, B, and D, but not supplemental (Medigap) insurance.