from my continuing education people .. good news for older, self employed people
IRS Changes Its Mind 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 that they didn't qualify. Example:
Mary is a 67-year-old, self-employed real estate broker. Because she is
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. © Sharon Kreider |
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