I am using the TurboTax Medical Expenses Worksheet. If I am interpreting Schedule A correctly, and that is a big if, I can deduct Medicare premiums to the extent that total medical cost exceeds 7.5% of AGI. the worksheet does not mention Medicare supplement insurance. Can premiums for such insurance be entered into Schedule A in order to exceed this
7.5% threshold?Bill
Yes. For a discussion of all the possible medical deductions see IRS Publication 502.
Phil Marti VITA/TCE Volunteer Clarksburg, MD
In addition, the IRS recently changed their opinion on whether Medicare B premiums (and by extension Part D too) qualify for a medical plan in the name of the business for a Sole Proprietor.
The ruling says yes, Medicare part B is eliible for the SE healthcare premiums above-the-line deduction, provided you are not otherwise eligible for any other subsidized healthcare plan.
That ruling is retroactive so amending the past three years is OK.
Furthermore, for 2010, the amount of above-the-line SE healthcare premiums will reduce the amount of income from self employment on Schedule SE, thus reducing SE tax,
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