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What Part of Medicare Payments Are Tax Deductible?

For the many people in this country who pay into Medicare each month, they may be able to claim some of those payments as deductions on their taxes. Some of the factors that may change deductions are age, the type of Medicare and whether any Social Security benefits are being received.

  1. Medicare A

    • If you are enrolled in Medicare A, the premiums you pay are deductible. However, if you are enrolled in Social Security, then the deductions becomes void. Medicare A covers major illnesses as well as care at the end of life. This may include, but is not limited to, hospice care and inpatient care. It can also sometimes be used to pay for a home health aide. If a nursing home is needed, Medicare A will pay for that as well.

    Medicare B

    • Medicare B is the type that covers doctor's visits and other issues that are typical and nonthreatening in nature. It also covers various therapy, including physical and occupational. These premiums are fully deductible if you are age 65 or over. At the end of the fiscal year, you will receive a form with the exact amount you paid in shown so that you can apply it to your taxes.

    Medicare D

    • Medicare D is otherwise known as prescription Medicare. Medicare D is voluntary. This type of Medicare covers drugs, meaning that it covers the cost of prescription drugs. While there are many plans within Medicare D to choose from, most do have co-payments and deductibles that need to be met. The premiums can be deducted as medical expenses that you have incurred.

    Medicare C

    • Known as the Medicare Advantage Plan, C covers both A and B. You will get major illness care as well as care during routine doctor visits. This type of Medicare offers the most choices but also requires a higher premium. Since it is a combination of A and B Medicare, the same tax deductions apply. You must be 65 and you must not be receiving Social Security benefits.

    Miscellaneous Taxes

    • Any payments that you pay directly into Medicare and Social Security are 100 percent tax deductible. However, any money that is deducted for payroll tax will not be able to be used as a deductible.

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