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Medicare Premiums are Self Employed Health Insurance

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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