Are Medicare Premiums Tax Deductible? A Guide for Seniors:
At TYS, we understand that healthcare costs are a major part of retirement planning. For many of our clients in both California and New York, one common question we hear is:
“Can I deduct my Medicare premiums on my taxes?”
The short answer is yes – but with some important conditions. Let's walk through what you need to know as you plan ahead.
When are Medicare Premiums Tax Deductible?
Medicare premiums are considered qualified medical expenses by the IRS. However, to deduct them on your tax return, two key requirements must be met:
You must itemize your deductions.
Instead of taking the standard deduction, you’ll list out your deductible expenses on Schedule A. If your total deductions are higher than the standard amount, itemizing may reduce your taxable income.
Your total medical expenses must exceed 7.5% of your Adjusted Gross Income (AGI).
Only the portion of your medical expenses above this threshold is deductible.
Example:
Let’s say your AGI is $60,000.
7.5% of $60,000 is $4,500.
If your total medical expenses – including Medicare premiums – come to $7,500, you can deduct $3,000 of those costs
Which Medicare Premiums Can Be Deducted?
If you meet the above conditions, premiums for all parts of Medicare are generally deductible, including:
Part A (if you pay a premium)
Part B (medical insurance)
Part C (Medicare Advantage)
Part D (prescription drug coverage)
Medigap policies (supplemental insurance)
These are considered out-of-pocket medical costs and can be included in your total deductible medical expenses.
Special Rule: If You're Self-Employed
If you’re self-employed—even part-time, consulting, or freelancing in retirement—you may be able to deduct Medicare premiums without meeting the 7.5% threshold.
To qualify:
You (and your spouse, if applicable) must not have access to employer-sponsored health coverage.
You can deduct your Medicare premiums "above the line" on Schedule 1 of Form 1040, which directly reduces your taxable income.
This deduction applies to all Medicare-related premiums: A, B, C, D, and Medigap.
What Other Medicare-Related Expenses Are Deductible?
Medicare doesn’t cover everything, and many of those out-of-pocket expenses can be deducted—if you meet the AGI requirement.
Here are some common deductions our clients overlook:
Dental care: cleanings, fillings, extractions, dentures
Vision & hearing: glasses, contact lenses, eye exams, hearing aids
Medical equipment: wheelchairs, walkers, oxygen equipment
Home modifications due to disability (e.g., ramps, grab bars)
Mental health care including therapy or psychiatric treatment
Transportation to and from medical appointments
If you're not sure whether an expense qualifies, we recommend keeping detailed records and receipts—and consulting your tax advisor.
What Medicare Expenses Are Not Deductible?
Medicare doesn’t cover everything, and many of those out-of-pocket expenses can be deducted—if you meet the AGI requirement.
Here are some common deductions our clients overlook:
Dental care: cleanings, fillings, extractions, dentures
Vision & hearing: glasses, contact lenses, eye exams, hearing aids
Medical equipment: wheelchairs, walkers, oxygen equipment
Home modifications due to disability (e.g., ramps, grab bars)
Mental health care including therapy or psychiatric treatment
Transportation to and from medical appointments
If you're not sure whether an expense qualifies, we recommend keeping detailed records and receipts—and consulting your tax advisor.
How TYS Can Help?
Navigating Medicare deductions can be confusing—especially when the tax code keeps changing. At TYS, we’re here to guide you. Whether you're in Walnut Creek or Rochester, we specialize in helping retirees make the most of their deductions and reduce tax burdens legally and effectively.
Let’s take a look at your medical expenses together and determine the best filing strategy for your situation. Tax planning isn’t just about saving money—it’s about peace of mind.
📞 Reach out to our team today to schedule a consultation with a trusted advisor near you.
Are Medicare Premiums Tax Deductible? A Guide for Seniors:
At TYS, we understand that healthcare costs are a major part of retirement planning. For many of our clients in both California and New York, one common question we hear is:
“Can I deduct my Medicare premiums on my taxes?”
The short answer is yes – but with some important conditions. Let's walk through what you need to know as you plan ahead.
When are Medicare Premiums Tax Deductible?
Medicare premiums are considered qualified medical expenses by the IRS. However, to deduct them on your tax return, two key requirements must be met:
You must itemize your deductions.
Instead of taking the standard deduction, you’ll list out your deductible expenses on Schedule A. If your total deductions are higher than the standard amount, itemizing may reduce your taxable income.Your total medical expenses must exceed 7.5% of your Adjusted Gross Income (AGI).
Only the portion of your medical expenses above this threshold is deductible.
Example:
Let’s say your AGI is $60,000.
7.5% of $60,000 is $4,500.
If your total medical expenses – including Medicare premiums – come to $7,500, you can deduct $3,000 of those costs
Which Medicare Premiums Can Be Deducted?
If you meet the above conditions, premiums for all parts of Medicare are generally deductible, including:
Part A (if you pay a premium)
Part B (medical insurance)
Part C (Medicare Advantage)
Part D (prescription drug coverage)
Medigap policies (supplemental insurance)
These are considered out-of-pocket medical costs and can be included in your total deductible medical expenses.
Special Rule: If You're Self-Employed
If you’re self-employed—even part-time, consulting, or freelancing in retirement—you may be able to deduct Medicare premiums without meeting the 7.5% threshold.
To qualify:
You (and your spouse, if applicable) must not have access to employer-sponsored health coverage.
You can deduct your Medicare premiums "above the line" on Schedule 1 of Form 1040, which directly reduces your taxable income.
This deduction applies to all Medicare-related premiums: A, B, C, D, and Medigap.
What Other Medicare-Related Expenses Are Deductible?
Medicare doesn’t cover everything, and many of those out-of-pocket expenses can be deducted—if you meet the AGI requirement.
Here are some common deductions our clients overlook:
Dental care: cleanings, fillings, extractions, dentures
Vision & hearing: glasses, contact lenses, eye exams, hearing aids
Medical equipment: wheelchairs, walkers, oxygen equipment
Home modifications due to disability (e.g., ramps, grab bars)
Mental health care including therapy or psychiatric treatment
Transportation to and from medical appointments
If you're not sure whether an expense qualifies, we recommend keeping detailed records and receipts—and consulting your tax advisor.
What Medicare Expenses Are Not Deductible?
Medicare doesn’t cover everything, and many of those out-of-pocket expenses can be deducted—if you meet the AGI requirement.
Here are some common deductions our clients overlook:
Dental care: cleanings, fillings, extractions, dentures
Vision & hearing: glasses, contact lenses, eye exams, hearing aids
Medical equipment: wheelchairs, walkers, oxygen equipment
Home modifications due to disability (e.g., ramps, grab bars)
Mental health care including therapy or psychiatric treatment
Transportation to and from medical appointments
If you're not sure whether an expense qualifies, we recommend keeping detailed records and receipts—and consulting your tax advisor.
How TYS Can Help?
Navigating Medicare deductions can be confusing—especially when the tax code keeps changing. At TYS, we’re here to guide you. Whether you're in Walnut Creek or Rochester, we specialize in helping retirees make the most of their deductions and reduce tax burdens legally and effectively.
Let’s take a look at your medical expenses together and determine the best filing strategy for your situation. Tax planning isn’t just about saving money—it’s about peace of mind.
📞 Reach out to our team today to schedule a consultation with a trusted advisor near you.