Deducting medicare premiums as SE insurance deduction.

[mikeburg]

I have a client with adjust gross income of $46,000 which includes his spouse with $1,500 income from a 1099MISC non-employee compensation.

(1) Are we allowed to deduct the spouse $1,259 medicare premiums withheld on her SSA-1099?

(2) Are we allowed to deduct the taxpayer's medicare premiums of $241 (1,500-1,259 already deducted)?

Thank you for any & all information & comments.

mikeburg

[Nashville]

I do it

Mike, there are those who would tell you I should be tarred and feathered, but I do it.

Not every time. If they have other coverage not supplied by an §125 plan, I use the other coverage. And if it is medicare advantage, I use the entire premium, including supplemental. The requirement for the insurance to be "taken out in the name of the company" has not been upheld and is usually taken to be useless language.

I expect there will be those who take exception with me, so wait around until there are other replies.

[Burke]

I have a client with adjust gross income of $46,000 which includes his spouse with $1,500 income from a 1099MISC non-employee compensation.
(1) Are we allowed to deduct the spouse $1,259 medicare premiums withheld on her SSA-1099? (2) Are we allowed to deduct the taxpayer's medicare premiums of $241 (1,500-1,259 already deducted)? Thank you for any & all information & comments. mikeburg

IMO, no. Certainly not the wife's medicare deduction. He does not pay it. She does. And I believe there was recently another court decision in which the MC premium was no longer allowed as SEHI? Research this to determine if it is valid in your jurisdiction.

[mikeburg]

Thanks to you both.

Burke, you may have the TP & SP reversed, but I see what you mean.

Would being in a community property state make any difference as to using the TP's medicare premium for the SP SE health insurance deduction?

Thanks so much for you ideas. mikeburg

[Lion]

Chief Counsel Advice (CCA) 201228037

[TAXNJ]

Compliments

Chief Counsel Advice (CCA) 201228037

Compliments to you for providing support of an answer in a few words.

[Burke]

There is a long history of threads on this subject this year and last, and this CCA was posted previously. I will concede that even though it says not to be used or cited as a precedent,
I would feel comfortable as a basis for deduction, with caveats to the TP to that effect. Also, the court case I was thinking of just recently was on a different matter which has been in contention for years. Sorry about that.