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Where is Medicare Part B premium deduction

YankeeGirl
Level 2

Why isn't the Medicare Part B premium paid to SSA deducted from income?

i entered the gross, then entered the $2041.20paid for Medicare premium, but it was not deducted. i have never seen that before?

My guy now has to apparently pay twice for Medicare, it seems.

he is filing married, separate. not sure if that matters

 

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9 Comments 9
Just-Lisa-Now-
Level 15
Level 15

 Its not deducted from income, its part of itemized deductions.  You should see it included in the Medical Expenses section of Sch A 


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
abctax55
Level 15

Do you think it should be deductible because your client is self-employed?

"*******Tax software is no substitute for a professional tax preparer*******
( Generic Comment )"
IRonMaN
Level 15

"i have never seen that before?"

It has always been that way so I'm curious where you have seen it being handled differently before.


Slava Ukraini!
abctax55
Level 15

My guy now has to apparently pay twice for Medicare, it seems.

Huh?..... I don't quite get this part

"*******Tax software is no substitute for a professional tax preparer*******
( Generic Comment )"
rbynaker
Level 13

@abctax55 wrote:

My guy now has to apparently pay twice for Medicare, it seems.

Huh?..... I don't quite get this part


Doesn't everyone?  You pay in to Medicare all your working life and then when you turn 65 you get to pay Medicare premiums on top of that.

YankeeGirl
Level 2

Lisa,

thank you for your decent reply. He cannot itemize. all he has is SSD and and and a pension. he is totally disabled, so he has nothing else. i double checked. all his SSA income is taxable if he files married separate.

sjrcpa
Level 15

85% of SS is taxable.


Ex-AllStar
abctax55
Level 15

Rick... can't argue with you on that 🙂

I was thinking that it not being deductible doesn't mean you are 'paying twice'  

"*******Tax software is no substitute for a professional tax preparer*******
( Generic Comment )"
qbteachmt
Level 15

I also don't understand: "My guy now has to apparently pay twice for Medicare, it seems."

If the person has not got a job, they are not paying twice.

If a person is self-employed, they are allowed to take medical insurance cost as part of business deduction (within limits), which gives them parity to the employer/employee provision.

If a person is on Medicare, they are paying premiums, and Part B is priced according to their income (there is a two year lookback). That still is not twice.

Itemized Deductions need to exceed the standard deduction, to show on the tax return as a deduction. It's one or the other.

The medical section of that schedule has a floor or limit, which has had to exceed 7.5% (or 10% of AGI, for most of these past few years, and changed in consideration of the pandemic hardships that arose). You will want to know that threshold for the year you are working on, to know if their medical premiums, medical care, and other costs even meet that reporting threshold. They might not exceed this limit, and don't even contribute to the rest of that schedule.

This topic should be a good reference for you:

https://www.irs.gov/taxtopics/tc502

Because you should understand this better, and be able to communicate to your client without the melodrama. They rely on you to assure them things are going well.

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"Level Up" is a gaming function, not a real life function.
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