Can You Deduct Medicare Premiums From Your Taxes? A Guide to Deductible Expenses
Key takeaways:
Medicare premiums can be tax deductible if you itemize your deductions. This is done instead of taking the standard deduction on your federal income tax return.
Medicare expenses that exceed 7.5% of your adjusted gross income may be tax deductible.
Only expenses considered allowable by the IRS, such as Medicare premiums and annual physical exams, can be deducted. Keep your receipts and plan ahead to maximize your tax deductions.
Table of contents
Many people are eager to identify deductions that could lower their tax bill. If you’re a Medicare enrollee who meets certain conditions, you may be eligible to deduct some expenses. This includes Medicare premiums.
Keep track of your medical receipts. You’ll need proof to verify every eligible expense that you report on your tax return.
Here are tips to keep in mind about deducting Medicare expenses.
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Are Medicare premiums tax deductible?
Yes, Medicare premiums can be tax deductible if you meet certain criteria. To qualify, you must:
Itemize your deductions instead of taking the standard deduction
Have total medical expenses, including premiums, that exceed 7.5% of your adjusted gross income (AGI)
Medical insurance premiums may be included in your medical expense deductions. This includes certain Medicare plans. But you can’t deduct premiums if you’re already claiming a credit or another deduction on those amounts.
Which Medicare premiums can you deduct?
The IRS provides guidance on deducting Medicare premiums:
Medicare Part A
If you aren’t covered under Social Security and you enroll in Medicare Part A voluntarily, then those premiums could be deducted if you itemize deductions on your tax return. But if you’re automatically covered under Social Security (or as a government employee who paid Medicare taxes), your payroll tax contributions for Part A are not deductible as a medical expense.
Medicare Part B
Part B premiums are considered a supplemental medical insurance expense. You can generally include these premiums in your deductible medical expenses.
Your expenses may qualify for tax deductions if they’re medically necessary. Here’s a list of tax-deductible healthcare costs, including vision and dental.
Are gym memberships tax deductible? The IRS generally does not consider gym memberships tax-deductible medical expenses, but you may have other options to save money.
Can you deduct the cost of LASIK surgery on your taxes? Review the requirements to deduct LASIK eye surgery and see if you qualify.
In 2025, the standard monthly Part B premium is $185, an increase from $174.70 in 2024. But if your income exceeds the annual threshold, you will pay the standard premium amount and an income-related monthly adjustment amount.
Medicare Part D
Part D premiums for prescription medication coverage may also be included in your deductible medical expenses.
Can you deduct Medicare premiums if you are self-employed?
Yes, if you are self-employed, you may be able to deduct Medicare premiums for yourself, your spouse, and your dependents as part of the self-employed health insurance deduction. But you’ll have to meet eligibility requirements, such as not being eligible for employer-sponsored health insurance coverage.
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Which other tax deductions can you take each year?
The IRS’ list of expenses that are allowable for deductions is fairly comprehensive. For example, many costs associated with the diagnosis and treatment of an illness or injury are allowable. This includes preventive care, medical equipment, and transportation to obtain healthcare services. That’s right: You can deduct your mileage, train fare, or Uber ride to your healthcare appointments.
You can find a list of eligible expenses on the IRS website. Here are some popular services that are allowable expenses as a Medicare enrollee:
Annual physical exam
Eligible long-term care health insurance premiums
Guide dogs and other service animals
Home care and nursing services
Lab fees
Oxygen
Personal protective equipment, such as hand sanitizer and sanitizing wipes
Psychiatric care, psychoanalysis, and psychological care
Therapy
Wig if it’s medically necessary
X-ray services
Long-term care insurance premiums may be deducted — up to an annual limit — based on the insured person’s age. For example, if you are age 40 or under, you can take a maximum deduction of $480 as a medical expense for the 2024 tax year. But if you’re 71 or older, you can deduct a maximum of $5,960 on your tax return if you itemize deductions. It’s also important to confirm that you have a qualified long-term care insurance policy before claiming the deduction.
Any deductibles or copays you pay to receive Medicare-covered services are considered allowable. Out-of-pocket costs for prescription medications are also eligible for deduction. Additionally, you may deduct out-of-pocket expenses for care not covered under Medicare. This includes routine checkups, dental care, nursing homes, and equipment deemed medically necessary.
How do income limits work for Medicare tax deductions?
The IRS has guidelines to determine if you are eligible to deduct your Medicare expenses. First, your qualified medical expenses must exceed 7.5% of your AGI. Tally up your unreimbursed health and dental expenses to determine if you qualify for the deduction.
Let’s say your AGI is $40,000 and your out-of-pocket Medicare expenses are $4,500. Because of the 7.5% threshold, you’ll be able to deduct expenses beyond the first $3,000. Your total deduction on your tax return would be $1,500.
To claim the medical expense deduction, you have to itemize deductions on Schedule A of your tax return. It makes sense to itemize if your expenses exceed the standard deduction amount.
Which expenses are not eligible for a Medicare tax deduction?
While the IRS has a comprehensive list of tax-deductible medical expenses, not all costs are deductible. For example, Medicare expenses that are reimbursable are not tax deductible.
Late penalties on Part B or Part D premiums are also not tax deductible. Generally, you also can’t deduct prescription medications purchased abroad unless the medication is legal in the other country and the U.S.
Nonprescription medications are usually not allowable unless a healthcare professional recommends them to treat a condition. This includes vitamins and supplements.
Other expenses that are not tax deductible:
Babysitting or childcare
Electrolysis (for hair removal)
Funeral expenses
Health spa expenses
Hair transplants
Life insurance premiums (unless you qualify for an exception)
Personal use items (toothbrushes, floss, toilet paper)
Teeth whitening
Does having supplemental insurance affect which Medicare tax deductions you can make?
Medicare supplemental insurance — known as Medigap — comes in handy when you have high out-of-pocket costs. This coverage can pay for the cost of deductibles, coinsurance, and copays that original Medicare (Parts A and B) doesn’t cover. Signing up for a supplemental insurance plan does not prevent you from deducting eligible Medicare-related costs on your tax return.
Which records should you keep for your Medicare tax deductions?
To maximize your deductions, keep track of your expenses and save your receipts. Make note of what every medical or dental expense is for to determine if it’s a qualified expense.
Also, maintain records of your Medicare premiums. This will help you identify the appropriate deductions to take. If you are organized during the year, it will be easier to calculate eligible expenses on your tax return. For further guidance, consult with a tax professional.
Frequently asked questions
To qualify for a Medicare tax deduction, you’ll need to itemize instead of taking the standard deduction. Qualified medical expenses that exceed 7.5% of your AGI will be eligible for the tax deduction. This includes premiums.
Medicare Part B premiums are typically deducted from your monthly Social Security benefits. These premiums can cover outpatient hospital services, doctor visits, and some medical equipment.
Health insurance premiums deducted from your Social Security benefits are considered allowable expenses. This can help you reduce your tax liability. To qualify for the Medicare Part B premium tax deduction, you must itemize expenses on your tax return.
Yes, you can use your health savings account (HSA) to pay for Medicare premiums. But once you enroll in any part of Medicare, you can’t contribute to an HSA. You can use existing funds to pay for qualified expenses. These include Medicare premiums, copays, and deductibles.
The bottom line
Medicare premiums can be tax deductible as a medical expense if you itemize your deductions on your federal income tax return. This is done instead of taking the standard deduction.
Deducting Medicare expenses on your tax return can help you save money. Make sure you keep track of your expenses and save your receipts throughout the year. This will help you determine whether to itemize or take the standard deduction. Medicare expenses can add up, but planning ahead can help you maximize savings.
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References
Association of International Certified Professional Accountants. (2012). Self-employed can deduct Medicare premiums, IRS chief counsel advises. Journal of Accountancy.
Internal Revenue Service. (2024). Publication 502 (2024), medical and dental expenses.
Internal Revenue Service. (2025). About Publication 502, medical and dental expenses.
Internal Revenue Service. (2025). About Schedule A (Form 1040), itemized deductions.
