Deductibles and copayments
Most dental, hearing and vision expenses, such ascontact lenses, eyeglasses, routine eye exams, dental procedures,dentures, routine dental exams,hearing aidsand hearing exams. You can also include the cost of eye surgery to treat defective vision, such as laser eye surgery or refractive surgery to correct myopia or nearsightedness.
Medical equipment,including crutches or a wheelchair, that may not becovered in full. Medical supplies such as bandages are also tax deductible.
Certain home improvementsto accommodate a disability. For example, you can deduct the cost of constructing wheelchair ramps, installing bathroom grab bars and handrails, and widening doorways and hallways. If the improvement increases the value of the home, a portion of the expense will not be tax deductible.
Certain psychologist or psychiatrist care costs,even if they exceed Medicare’s coverage limits formental health benefits.
Services Medicare doesn’t cover,such asacupunctureorchiropractor visitsbeyond the limited definition of Medicare coverage.
Many travel expensesto receive medical care. But lodging costs may have a daily maximum.
See IRS Publication 502,Medical and Dental Expenses, for a full list of eligible expenses and rules.
See more Insurance offers >
What Medicare expenses are not tax deductible?
You can’t deduct the following Medicare-related expenses.
Cosmetic surgeryto improve your appearance unless the surgery addresses problems resulting from an accident, deformity or disease.
Late enrollment penaltiesadded toPart BorPart Dpremiums.
Nonprescription medications,except for insulin. That includes herbal, nutritional or vitamin supplements, unless a medical provider recommends them as treatment for a specific medical condition a physician has diagnosed.
Can I deduct Medicare premiums if I’m self-employed?
If you’re self-employed, you may be able to deduct premiums for Medicare or other eligible health insurance from your income without having to itemize or meet the 7.5 percent threshold. Even if you were primarily retired but did some consulting work, you may be eligible to deduct all or part of your premiums.
You can qualify for the self-employed health insurance deduction only if both you and your spouse were ineligible to participate in an employer-subsidized health plan. The tax-deductible premiums cannot exceed the amount of money you earned from your business. The calculation is more complicated if you received a subsidy for buying health insurance on thefederal or a state insurance marketplace.
If you qualify, you can deduct premiums for Medicare Part B and Part A if you’re required to pay them, as well as Part D, Medicare Advantage and Medigap premiums, and eligible long-term care insurance premiums. You can claim this deduction as an adjustment to income on Schedule 1 when filing yourForm 1040.
Keep in mind
You can withdraw money tax-free from ahealth savings account(HSA) to pay Medicare premiums after you turn 65, including premiums for Medicare Part A, Part B, Part D prescription drug plans and Medicare Advantage. However, the IRS doesn’t allow tax-free HSA withdrawals for Medigap premiums.
You can’t make new contributions to an HSAafter you enroll in Medicare, but you can make tax-free withdrawals for other eligible medical expenses at any age. You can’t take a tax deduction and tax-free HSA withdrawals for the same expenses.
Return to Medicare Q&A main page
FAQs
So, are Medicare payments tax deductible? Yes, as are many other medical expenses. The IRS list includes things that probably won't surprise you, like Medicare copayments and medically necessary durable medical equipment.
Can I deduct my Medicare premiums from my taxes? ›
Yes, Medicare premiums are tax deductible as a medical expense as long as you meet two requirements. First, you must itemize your deductions on your tax return to deduct them from your taxable income. Second, only medical expenses that exceed 7.5% of your adjusted gross income (AGI) are deductible.
Can I deduct Medicare Part B premiums on my taxes with TurboTax? ›
Yes, you can deduct your Medicare premiums as part of your medical expenses, if you itemize. TurboTax will do this automatically, just enter your Medicare premiums when you enter your Social Security benefits, on the SSA-1099 screen.
Can I claim Medicare tax withheld on 1040? ›
You will claim credit for any withheld Additional Medicare Tax against the total tax liability shown on your individual income tax return (Form 1040 or 1040-SR).
Can I deduct Medicare Part B premiums on schedule C? ›
If you have any Schedule C income then you should definitely deduct your Medicare premiums. If you are self-employed, you can deduct Medicare Part B premiums, Medicare part D premiums, Medicare Advantage plan premiums, and Medigap premiums.
What is the extra standard deduction for seniors over 65? ›
Additional Standard Deduction for People Over 65
| Filing Status | Taxpayer Is: | Additional Standard Deduction 2024 (Per Person) |
|---|
| Single or Head of Household | Blind | $1,950 |
| Single or Head of Household | 65 or older | $1,950 |
| Single or Head of Household | Blind AND 65 or older | $3,900 |
3 more rowsMar 11, 2024
Health insurance premiums can be tax deductible when you retire, but it depends on several factors such as your age, the type of health insurance plan that you have and whether you are self-employed or not.
Are supplemental insurance premiums tax deductible? ›
Is Supplemental Health Insurance Tax Deductible? Supplemental health insurance premiums, like hospital indemnity insurance and critical illness insurance, are generally tax deductible, but only as a qualified medical expense.
How is Medicare Part B premium deducted? ›
Part B (Medical Insurance)
premium deducted automatically from their Social Security benefit payment (or Railroad Retirement Board benefit payment). If you don't get benefits from Social Security (or the Railroad Retirement Board), you'll get a premium bill from Medicare.
Do I have a deductible with Medicare Part B? ›
Find out how the Part B penalty works and how to avoid it. $240 before Original Medicare starts to pay. You pay this deductible once each year. The payment amount that Original Medicare sets for a covered service or item.
Also, you can deduct the employer-equivalent portion of your SE tax in figuring your adjusted gross income. Wage earners cannot deduct Social Security and Medicare taxes.
Can I get a tax refund if my only income is Social Security? ›
You would not be required to file a tax return. But you might want to file a return, because even though you are not required to pay taxes on your Social Security, you may be able to get a refund of any money withheld from your paycheck for taxes.
Are Social Security and Medicare part of federal taxes? ›
Taxes under the Federal Insurance Contributions Act (FICA) are composed of the old-age, survivors, and disability insurance taxes, also known as Social Security taxes, and the hospital insurance taxes, also known as Medicare taxes.
Can you write off Medicare premiums on your taxes? ›
Are Medicare premiums tax deductible? Yes, your Medicare premiums can be tax deductible as a medical expense if you itemize deductions on your federal income tax return. You can only deduct medical expenses after they add up to more than 7.5 percent of your adjusted gross income (AGI).
Are dental insurance premiums tax deductible? ›
The IRS considers dental insurance premiums to be spending towards something that prevents or alleviates disease, and therefore eligible to be deducted. Internal Revenue Service. "Publication 502 (2022), Medical and Dental Expenses."
What is considered income for Medicare premiums? ›
We use the most recent federal tax return the IRS provides to us. If you must pay higher premiums, we use a sliding scale to calculate the adjustments, based on your “modified adjusted gross income” (MAGI). Your MAGI is your total adjusted gross income and tax-exempt interest income.
Can you deduct health insurance premiums without itemizing? ›
Health insurance premiums are deductible if you itemize your tax return. Whether you can deduct health insurance premiums from your tax return also depends on when and how you pay your premiums: If you pay for health insurance before taxes are taken out of your check, you can't deduct your health insurance premiums.
Is it worth claiming medical expenses on taxes? ›
Normally, you should only claim the medical expenses deduction if your itemized deductions are greater than your Standard Deduction (TurboTax can also do this calculation for you). If you elect to itemize, you must use IRS Form 1040 to file your taxes and attach Schedule A.
Is Medicare tax deducted from taxable income? ›
The Medicare tax is one of the federal taxes withheld from your paycheck if you're an employee or that you are responsible for paying yourself if you are self-employed.
Are prescription insurance premiums tax deductible? ›
Generally, you are allowed to deduct health insurance rates on your taxes if you itemize your deductions, pay your health insurance premiums directly, and your medical expenses totaled more than 7.5% of your income for the year.
