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Tax Law (Questions About Taxes)/Medicare & Supplement Insurance Premiums

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Question
QUESTION: Hello,

Are insurance premiums for Medicare and supplement insurance considered as a "medical expense" and are tax deductible?

Thanks so much!

Kathy

ANSWER: Kathy,

Thanks for your question.

Yes, those are considered medical expenses and are deductible medical expenses.  Of course, in order to deduct them your medical expenses must exceed the 7.5% (or 10%) threshold. And you must itemize deductions.

Hope this helps.

John Stancil, CPA

---------- FOLLOW-UP ----------

QUESTION: Thanks so much John, I really appreciate your getting back to me so quickly! I need a little clarity on "threshold" the insurance premiums total $1880 and I may have approx. $300 in "out of pocket" expenses. Is that within the threshold range? Yes, thank you, I always itemize.

My computer did something wierd, because when I clicked "add rating"  (which was a 10)and began to type my message, the page went back to your home page andI couldn't get back to it! :((

Thanks so much again and I'll be very careful not to screw up your rating next time. :)

Kathy

Answer
I couldn't tell you a dollar amount for the threshold.  I presume you are 65 or over.  That means that you can only deduct medical expenses that exceed 7.5% of your adjusted gross income.

For example, if your AGI (line 37 of page 1 of the 1040) is $30,000, then 7.5% of that is $2,250.  You could only deduct medical expenses that exceed that amount.

Hope this helps.

John Stancil, CPA

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John Stancil, CPA

Expertise

I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I am Professor Emeritus at Florida Southern College. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a CPA practice, specializing in tax, for over 35 years. I am a member of the National Association of Tax Professionals, The Florida Insititute of CPA's, The NCPE Fellowship. In addition I am a Certified Mentor for SCORE. Visit my website at www.mybaldcpa.com. I also offer seminars and consultations to churches and clergy on their tax issues at www.churchtaxsolutions.com Also visit my blog, www.thetaxdocspot.com. I am listed on Tax Connections at https://www.taxconnections.com/profile/John-Stancil/12258973 Prepare and file your own taxes at www.1040stancilcpa.com

Experience

I hold a doctorate in Accounting, and am a CPA. My certifications of CIA, CFM, and CMA are inactive. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I have operated a CPA firm for over 37 years and have taught accounting and tax at the college level for over 35 years.

Organizations
FICPA, NATP, NCPE Fellowship, Lakeland Business Leaders

Publications
The CPA Journal, Florida CPA Today, Green Consumer, Green Business, Global Sustainability as a Business Imperative, Palmetto Review, NATP TaxPro Quarterly, Mustang Journal of Finance and Accounting.

Education/Credentials
DBA University of Memphis MBA University of Georgia BS in Accounting Mars Hill University

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