Are Medicare premiums tax deductible?


Are Medicare premiums tax deductible?

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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).


This means if your AGI is $50,000, you can deduct medical expenses in excess of $3,750. If you had $5,000 in eligible medical expenses, you could deduct $1,250 on your income tax return.


Members only What are the rules for itemizing deductions?


Unless you’re self-employed, you can only deduct medical expenses if you itemize rather than take the standard deduction. To make this worthwhile, your total itemized deductions — including


but not limited to charitable gifts; eligible medical expenses; up to $10,000 in local and state income or sales taxes and property taxes; and tax-deductible mortgage interest — must be more


than the easier-to-claim standard deduction.


You have until the April 15, 2024, tax-filing deadline to deduct eligible premiums and other expenses you paid in 2023.

What Medicare expenses are tax deductible?


If you qualify, you can deduct Medicare and other related insurance premiums when you itemize, including:


Medicare Part A, although most people don’t have to pay Part A premiums.


Medicare Part B, which was $164.90 a month for most people in 2023 and $174.70 per month in 2024. The premiums can still be tax deductible even if they’re deducted automatically from your


Social Security benefits. If you have to pay a high-income surcharge for Part B premiums — also called the Income-Related Monthly Adjustment Amount (IRMAA) — your full premiums can still be


tax deductible.


Medicare Part D prescription drug plans, including the high-income surcharge.


Medicare Advantage, the private alternative to original Medicare.


Medicare supplement insurance, the private plans also known as Medigap.


Long-term care insurance. In addition to Medicare-related premiums, you can also deduct a portion of premiums you pay for eligible long-term care insurance policies based on your age.

40


or younger — $480 for 2023; $470 for 2024Age 41 to 50 — $890 for 2023; $880 for 2024Age 51 to 60 — $1,790 for 2023; $1,760 for 2024Age 61 to 70 — $4,770 for 2023; $4,710 for 2024Age 71 or


older — $5,960 for 2023; $5,880 for 2024


Married couples filing a joint tax return can each deduct their long-term care premiums up to the limits for their age.


Additional out-of-pocket medical expenses can be tax deductible if other insurance, such as Medigap, Medicare Advantage or retiree coverage doesn't cover the full costs. Some of these


eligible costs may include: