Taking the Guesswork Out of Medicare Blog Can Medicare premiums be deducted from my taxes?
Are Medicare Premiums Tax Deductible for Beneficiaries? Are the related Tax Deductions different if I am on Medicare and Self Employed? Are you just looking for ways to save and reduce the impact that taxes have on your monthly and annual bottom line?
These questions are very important for many seniors who are facing later retirements and/or who are self employed. In general, these questions should be important to anyone who is Medicare eligible and who wants to empower themselves with knowledge to minimize the impact taxes have on their bottom line.
If you are self employed, earn a profit, and are enrolled in Medicare, per the IRS:
Medicare Premiums = Tax Deductible, considered as a medical expense, must be itemized this way
Specific Medical Treatment or Injury = Tax Deductible, including preventative treatment, cost of medical devices/supplies, or any cost associated with the treatment and diagnosis of the specific Medical Treatment or Injury
When Should You Start Talking to Your Financial Team About Medicare*
Healthcare expenses are usually included in the conversations we have with our accountants and financial advisors.
The rules around Medicare are different from pre-65 health care plans and should be specifically discussed and planned for.
I suggest beginning this conversation as early as 55 years old, and this timing can be adjusted to correlate with your specific retirement goals and life situation.
The earlier you start, the more empowered and prepared you can be when you are ready to retire and/or enroll in Medicare.
You should also review this information every year with your accountant or financial advisor to ensure you are staying up to date with the newest rules and regulations.
*I am not an accountant or tax specialist. I am a comprehensive Medicare planner sharing information that may help you with your overall Medicare annual expenses. Your tax professionals and financial advisors can advise you on your specific needs and the exact rules/regulations. Stay safe and stay informed!