Are Medicare Insurance Premiums Tax Deductible?

Medicare insurance premiums can be tax-deductible, but specific conditions and rules from the Internal Revenue Service (IRS) must be met. Understanding these rules is essential to determine eligibility.

General Eligibility for Medical Expense Deductions

Claiming medical expenses, including health insurance premiums, involves itemizing deductions on your federal income tax return. This means taxpayers must choose to list specific eligible expenses rather than taking the standard deduction. The standard deduction is a fixed dollar amount that reduces taxable income, and for 2025, it is $15,000 for single filers and married individuals filing separately, $30,000 for married couples filing jointly, and $22,500 for heads of household.

A key aspect of the medical expense deduction is the Adjusted Gross Income (AGI) threshold. You can only deduct the amount of qualified medical and dental expenses that exceeds 7.5% of your AGI. For example, if your AGI is $50,000, only medical expenses over $3,750 (7.5% of $50,000) are potentially deductible. If your total qualified medical expenses were $6,000, you could deduct $2,250 ($6,000 – $3,750).

Deductible medical expenses include payments for doctor visits, hospital stays, prescription medications, dental care, vision care, and health insurance premiums. Costs associated with inpatient treatment for alcohol or drug addiction, smoking cessation programs, and weight-loss programs for specific diagnosed diseases can also be included. The IRS also allows deductions for expenses paid to travel for medical care, such as mileage, bus fares, and parking fees.

Which Medicare Premiums Are Deductible

Specific Medicare premiums can be included in your total qualified medical expenses. Medicare Part B premiums are tax-deductible as they are considered supplemental medical insurance. For 2025, the standard monthly Part B premium is $185. If an individual’s income exceeds annual thresholds, they may pay an Income-Related Monthly Adjustment Amount (IRMAA), and this surcharge is also tax-deductible.

Medicare Part D (prescription drug plan) premiums are deductible as part of your overall medical expenses. Premiums for Medicare Advantage (Part C) plans, which combine coverage from Parts A and B and often include additional benefits, can be deducted. Supplemental (Medigap) policy premiums, which help cover out-of-pocket costs not covered by Original Medicare, are also considered deductible medical expenses.

Most individuals do not pay a premium for Medicare Part A because it is typically funded through payroll taxes. If you are automatically covered under Social Security or as a government employee who paid Medicare taxes, your contributions for Part A are not deductible. However, if you are not covered under Social Security and voluntarily enroll in Medicare Part A, the premiums you pay for it may be deductible if you itemize.

How to Claim the Deduction

Claiming the medical expense deduction requires completing Schedule A (Form 1040), Itemized Deductions. This form is used to list various itemized deductions, which collectively may exceed the standard deduction amount, thus reducing your taxable income.

To complete Schedule A, you will first total all your qualified unreimbursed medical expenses for the year, including eligible Medicare premiums. This total amount is reported on Line 1 of Schedule A. Next, you will find your Adjusted Gross Income (AGI) from Line 11 of your Form 1040. You then calculate 7.5% of your AGI and enter this amount on a subsequent line of Schedule A.

This calculated difference is then carried to another line on Schedule A, where it is combined with any other itemized deductions you are claiming. The combined total of your itemized deductions then reduces your taxable income. Keep thorough records, such as premium statements and receipts, for at least three years in case of an IRS inquiry.

Special Situations

Self-employed individuals may be able to deduct their Medicare premiums through the self-employed health insurance deduction. This deduction is taken “above the line,” meaning it reduces their Adjusted Gross Income (AGI) directly, rather than being subject to the 7.5% AGI threshold for itemized deductions. This deduction applies to premiums for Medicare Parts A, B, C, D, and Medigap policies.

To qualify for the self-employed health insurance deduction, you must own a business as a sole proprietor, partner, LLC member, or S corporation shareholder with at least 2% of the company stock. A key condition is that neither you nor your spouse can be eligible for an employer-sponsored health plan. The amount you can deduct is limited to the net earnings from your self-employment.

If you use funds from a Health Savings Account (HSA) to pay for Medicare premiums, those premiums cannot be deducted again as a medical expense on Schedule A. HSA contributions are already tax-advantaged, as they are often made with pre-tax dollars, and qualified withdrawals are tax-free. While you cannot contribute to an HSA once enrolled in Medicare, existing HSA funds can be used tax-free to pay for Medicare Parts A, B, C, and D premiums, although not for Medigap premiums.