Are Medicare Premiums Tax Deductible?

Medicare premiums, copayments and certain other expenses may be deductible if you itemize deductions.
Kate Ashford, CSA®
John Rossheim
By John Rossheim and  Kate Ashford, CSA® 
Edited by Holly Carey Reviewed by Debra Nuckols

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Medicare premiums are tax deductible, along with other certain Medicare costs, if you itemize deductions on your income taxes.

Your unreimbursed medical and dental expenses — including Medicare premiums, deductibles, copayments and other medical expenses — may be tax deductible to the extent that they exceed 7.5% of your adjusted gross income. In other words, if your adjusted gross income is $35,000, you can deduct any out-of-pocket medical expenses above $2,625 — or 7.5% of $35,000.

Are Medicare premiums tax deductible?

Medicare premiums are tax deductible if you itemize deductions, although there may be restrictions:

  • Part A premiums are tax deductible if you meet certain requirements. (Most people don’t pay premiums for Medicare Part A, but if you do, and you’re not yet collecting Social Security benefits, these are deductible.)

  • Part B premiums are tax deductible.

  • Part C premiums are tax deductible.

  • Part D premiums are tax deductible.

  • Medigap premiums are tax deductible.

Other health care expenses may be deductible

Medicare recipients may incur a variety of medical expenses that their insurance doesn't cover, from long-term care to lodging during a trip to receive medical care. Some of these expenses may be tax deductible, within limits. According to the IRS, tax-deductible medical expenses include:

  • Artificial teeth.

  • Bandages.

  • Capital expenses, such as what you pay to add ramps to your home or widen doorways.

  • Eye exams and eyeglasses.

  • Guide dog or service animal costs.

  • Hearing aids.

  • Long-term care insurance premiums.

  • Nursing home expenses, if you’re there principally for medical care.

  • Psychiatric care.

  • Wheelchair.

  • Wig, if a doctor advises one.

There are limits on the deductibility of long-term care insurance premiums. For tax year 2021, the maximum tax deduction for long-term care premiums for people ages 61 to 70 is $4,520 per person; for age 71 and up, the limit is $5,640.

Medical expenses that aren’t deductible

Not every medical cost counts toward your deductible expenses. The following items can't be included:

  • Funeral expenses.

  • Health savings account contributions (or anything paid for by an HSA).

  • Medicines or drugs from other countries.

  • Nonprescription drugs or medicines.

  • Anything insurance reimburses.

Consider seeking professional tax advice

As with much of tax law, deductions for Medicare and other health care expenses are complicated. IRS Publication 502 offers details on medical expense deductions, but it’s a lot to digest. Deductions also work differently if you’re self-employed.

You need to determine whether itemizing deductibles is your best overall tax strategy. So it’s best to consult with a tax professional before claiming any deductions.

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