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IRS Changes Its Mind | Tax Tip of the Week | No. 85 March 23, 2011

Posted by bradstreetblogger in : Tax Tip, Taxes , trackback

Changes on Medicare Premiums as Self-Employed Health Insurance

With no notice, the IRS changed the wording in its 2010 Form 1040 Instructions. The instructions now say that Medicare B premiums can be used to figure the self-employed health insurance deduction. The 2009 instructions and Publication 535 said  they did not qualify.

Example: Mary is a 67-year-old, self-employed real estate broker. Because she’s a high income individual and is means tested for Medicare B, Mary pays $4,243 for her 2010 Medicare coverage. Mary also pays $1,200 for Medigap health insurance and $2,900 for long-term care insurance. If she’s otherwise qualified, Mary can claim a self-employed health insurance deduction of $8,343. For 2010 only, this amount also reduces her self-employment income for SE tax purposes.

Sometimes the rules do change in your benefit.

As always, give us a call if you have any questions.

You can contact us in Dayton at 937-436-3133 and in Xenia at 937-372-3504.  Or visit our website.

Rick Prewitt – the guy behind TTW

…until next week.


1. Arthur - December 11, 2015

Keep it coming, wrstire, this is good stuff.