If you itemize deductions from your income taxes, Medicare costs, such as premiums and co-payments, may be deductible.
Your unreimbursed medical and dental expenses, including premiums, deductibles, co-payments, and other Medicare expenses, may be deductible to the extent that they exceed 7.5% of your adjusted gross income. Premiums for Medicare Parts B and D are generally deductible; Part A premiums are deductible under limited circumstances.
Other health care costs may be deductible
Medicare beneficiaries can incur a variety of medical expenses that their insurance does not cover, from long-term care to accommodation while traveling to receive medical care. Some of these expenses may be tax deductible, Limitless.
There are limits to the deductibility of long term care insurance premiums. For the 2020 tax year, the maximum tax deduction for long-term care premiums for people aged 61 to 70 is $ 4,350 per person; for those 71 and over, the limit is $ 5,430.
A Medicare medical savings account can save on taxes
You can only use a Medicare medical savings account if you have a high deductible Medicare Advantage plan, which most people don’t. The money you deposit in an MSA (and the interest you earn) isn’t taxed if you spend it on qualifying medical expenses.
Even if you have such a plan, an MSA Medicare only makes sense if you are in very good health and are able to pay the full deductible and all other out-of-pocket expenses in the event of a surprise medical expense. .
Consider seeking professional tax advice
As with most tax laws, deductions for Medicare and other health care expenses are complicated. IRS Publication 502 offers details on deductions for medical expenses, but that’s a lot to digest.
You also need to determine if retail franchising is your best overall tax strategy. It is therefore preferable to consult a tax expert before claiming deductions.