Level 4

Question

Can I deduct spousal Medicare premiums deducted from her Social Security as a business expense on my Schedule C?

Forum|Forum|4 years ago
March 5, 2022
3 replies
35 views

I see that premiums for yourself, spouse children, etc. can be deducted if YOU pay for them. I am not paying for them if they are deducted from a spouses Social Security.... yet the situation is not clearly addressed in any reference I have found. What would you do?

ProSeries Basic

This topic has been closed for replies.

J

jeffmcpa2010

Level 10

When you look at your year end social security form how does box 5 compare to the amount you actually received?

If you analyze the situation you may conclude that you DID pay them through withholding of your income.

J

JD2Author

Level 4

Thank you for your response. Yes...mine...I did pay for. The question is can I claim the amount my spouse had deducted for Medicare from HER social security on my Schedule C (in which activity she does not participate)? I am torn in between the fact that if I paid for family Blue Cross, for instance, the guidelines seem clear cut that I can claim that, but all I have read on Medicare states that "YOU paid for". Semantics perhaps and likely a reasonable conclusion that "we" are "you".

Any further thoughts?

J

jeffmcpa2010

Level 10

I don't think so. I believe that what I remember from CPE a few years ago is family members only if they are covered on YOUR policy.

I don't believe WE are You.

For instance - If your wife paid to have you covered on her insurance through her employer, I am pretty sure the IRS position is that can not be claimed as self employed health insurance.

qbteachmt

Level 15

Here is a reference and always note the date on these articles:

https://www.healthinsurance.org/faqs/im-self-employed-can-my-husband-deduct-his-medicare-premiums/

"A. Yes. In 2012, the IRS ruled that Medicare insurance premiums can be counted. Under the ruling, Medicare premiums covering the self-employed individual – as well as his or her spouse, dependents, and under-age-27 children – are deductible."

Don't yell at us; we're volunteers

qbteachmt

Level 15

Here's another, more recent, and better written, since it includes itemizing as well:

https://www.medicareresources.org/faqs/can-i-deduct-my-medicare-premiums-on-my-tax-return/

Don't yell at us; we're volunteers

J

JD2Author

Level 4

Thank you. I have read both those articles and maybe a couple others. LOL...is it me or do these seem to come to different conclusions?

It seems illogical to me that one spouse's Medicare deducted from their own Social Security should be reportable by the other, self-employed, spouse.....but including it results in a much better refund and I do know of people who do so. Of course that does not make it right.

BobKamman

Level 15

Illogical?

You're not from around here, are you....

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