Medicare Part B premiums are classified as medical expenses, which may be counted toward yearly itemized tax deductions, according to the IRS. However, medical expenses are only deductible to the extent that they exceed 7.5 percent of an individual's adjusted gross income, states Nisivoccia, LLP.Continue Reading
In order to determine how much may be deducted for medical expenses, the first step is to calculate the total medical expenses, indicates Nisivoccia, LLP. The most common categories for medical expenses include out-of-pocket medical expenses; medical expenses paid for relatives; insurance premiums, including those for Medicare Parts B, C and D coverage; and also any premiums for long-term care coverage.
Once the medical expenses are added up, the next step is to calculate 7.5 percent of the adjusted gross income, indicates Nisivoccia LLP. The deductible medical expenses are those that remain after 7.5 percent of the AGI is subtracted. For instance, if the AGI is $80,000 and the medical expenses total $20,000, then the individual may deduct $20,000 minus $6,000 (7.5 percent of $80,000), or $14,000.
Medicare coverage premiums are often withdrawn automatically from Social Security benefit payments, according to Nisivoccia, LLP. In such a case, the yearly premium amounts can be found on form SSA-1099.Learn more about Health Insurance