Are you self-employed?

IRS lawyers confirm that self-employeds can deduct Medicare premiums. Premiums paid for all parts of Medicare are included in the deduction for health insurance on the front page of the 1040 form. This easing also applies to partners, provided the partnership paid the premiums or reimbursed the partner, and the amounts are reported as guaranteed payments that are taxed as income. The premiums must be included as taxable wages on the shareholders W-2 form.

Medicare premiums paid by a spouse qualifies well, the Service says filers who didn’t take the deduction in prior years can file for refund.

(Kiplinger’s Tax Letter, September 2012)

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