What is TTB's position on a self employed deducting the spouses medicare B or D as self employed health insurance. On a recent post 50% said it was ok and 50% said it was not ok. I personally think it is not allowed but ...
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Deductible
Don't know about TTB's position, but the Chief Counsel says it is:
CCM 201228037
EAnOK -
agree with smithtax
TTB, page 5-11 under “Self-employed health insurance deduction” says:
Later on that same page under “Did You Know?” it says:…Deductible amounts include health insurance premiums paid for the self-employed taxpayer, spouse, dependents, and a child under age 27, if any of the following apply…
It is logical to conclude that if Medicare qualifies as health insurance, and health insurance paid for a spouse and dependent qualifies for the self-employed health insurance deduction, then Medicare paid for a spouse and dependent of a self-employed individual would qualify for the self-employed health insurance deduction.All Medicare Parts are eligible for the self-employed health insurance deduction….
In fact, the citation under the above “Did You Know?” (CCA 201228037) says:
3. If all the requirements of section 162(l) are satisfied, Medicare premiums may be deducted under section 162(l) for coverage of the self-employed individual’s spouse, dependent or a child (as defined in section 152(f)(1) who as of the end of the taxable year has not attained age 27).Comment
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I know you can't deduct premiums for any month you are eligible to participate in a health insurance with your employer. Taxpayer retired in June so from that point on no employer. Turned 65 in Aug so Medicare premiums from that point on. Wife is self employed. Taxpayer is also retired military so has insurance thru Tricare. Does the fact they have the Tricare from the military retirement dissallow the deduction for the medicare premiums due to wife's business. Medicare is now taxpaers primary insurance and Tricare is secondaryComment
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IRS Pub 535 places two restrictions on health plans. Under the general rule for employer provided coverage, it says:
Under a special rule, it says:You cannot take the deduction for any month you were eligible to participate in any employer (including your spouse’s) subsidized health plan at any time during that month, even if you did not actually participate. In addition, if you were eligible for any month or part of a month to participate in any subsidized health plan maintained by the employer of either your dependent or your child who was under age 27 at the end of 2012, do not use amounts paid for coverage for that month to figure the deduction….
I see no other information listed in Pub 535 as to what is an employer subsidized plan. It does not say anything about military retirement insurance.Amounts paid for health insurance coverage
from retirement plan distributions that were non-
taxable because you are a retired public safety
officer cannot be used to figure the deduction.Comment
Comment