I’m self-employed. Can we deduct my husband’s Medicare premiums?

Q. I am self-employed and my husband is on Medicare. I deduct my health insurance premiums on my income tax. I recently heard that I also can deduct his Medicare Part A, Part B, Part C and Part D premiums. Is this really true?

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.

Prior to 2010, no Medicare premiums were deductible under the self-employment health insurance deduction. From 2010 to 2012, only Part B premiums were deductible. But starting in 2012, premiums for Medicare A, B, C, and D, as well as Medigap/Medicare Supplement, became deductible under the self-employment health insurance deduction.

The IRS rules for the self-employed health insurance deduction clarify that
The deduction cannot exceed the self-employed person’s earned income, after expenses. For example, if you have a net self-employment income (reported on a form like Schedule E or Schedule C) of only $10,000, your deduction cannot exceed $10,000. And the self-employed health insurance deduction is not allowed at all if employer-subsidized coverage is available (see Worksheet 6-A in Publication 535).

Read more FAQs about self-employed health insurance, as well as our in-depth explainer about the self-employed health insurance deduction.

This information is provided as background only. As with any issue related to your taxes, you should seek advice from a tax professional if you have questions about your specific circumstances.