If you are 65 or older and have basic Medicare, you may need to pay additional premiums to obtain the level of coverage that you need. If you are married and both you and your spouse are paying these premiums, they can get expensive. However, the good news is that you may be able to get Medicare premium tax deductions.
If you are in or near Columbia, South Carolina, and need home care, Medicare may cover the cost. Contact Caring Healthcare to learn more. We have been working with families in South Carolina for more than 25 years. You can trust our caregivers because we only hire those that we would trust with our own loved ones.
In this article, we’ll explain what you need to know about Medicare premium tax deductions for seniors.
Medicare Premiums are Considered Medical Expenses
Premiums for Medicare can be combined with other medical expenses to claim an itemized deduction on your tax return. This includes premiums for Medicare Advantage and Medi-Gap Insurance. Unfortunately, for many seniors, Medicare Parts A and B do not cover all healthcare expenses, which means they must purchase a Medi-Gap policy. Medi-Gap is a private insurance that covers gaps such as:
Itemizing vs. Standard Deduction
Qualifying for medical expense deduction is challenging for a few reasons. For example, in 2021, seniors could deduct medical expenses only if they itemized them and only if the expenses were more than 7.5% of their AGI.
The Tax Cuts and Jobs Act almost doubled the standard deduction for 2018 through 2025, which means most people are no longer itemizing deductions. In 2021, the standard deduction was $12,550 for singles, $25,100 for married couples filing jointly, and $18,800 for heads of household.
However, it’s advisable to itemize if you have substantial medical expenses such as Medicare premiums.
Basics of Medical Expense Deductions
In addition to Medicare premiums, seniors are eligible to deduct various medical expenses including:
- Hospital services
- Ambulance services
- Dental treatment
- Lab services
- Long-term care services
In addition, there are several items that Medicare does not cover that can be listed as tax deductions if you qualify. For example, you can deduct travel expenses to get to and from your medical appointments. If you travel by car, you can deduct $0.16 per mile or you can keep track of your actual expenses for repairs, gasoline, and oil.
Claim all deductions
Make sure that you claim all of your eligible medical expense deductions. If you need help, consult with a tax professional. They can help you determine what qualifies and what does not.
Let Caring Healthcare Help with Your In-Home Care Needs
If you are in need of in-home care, let Caring Healthcare help. We have been working with patients in and near Columbia for more than 25 years. We have the experience and expertise to help with a variety of needs, including transportation to and from medical appointments, medical and non-medical assistance, and more.