Supplemental Medicare works alongside your regular health insurance policy to aid with medical expenses that are not covered. Most who have bought into high deductible health insurance plans, or those that come with high out-of-pocket costs, utilize the perks of supplemental Medicare insurance.
So can you claim supplemental health insurance on taxes? Yes and no. It depends on the supplemental plan you have. If your supplemental Medicare insurance plan delivers a predetermined cost if you fall ill or are injured, it does not count as a deductible.
If you are enrolled in either a Medigap or Medicare Supplemental plan, you may qualify for tax deductions. Most taxpayers don’t know that premiums for Medicare supplement plans deducted from Social Security qualify as a deductible medical expense on Schedule A, Itemized Deductions, for Form 1040.
In short, Part B, Part D, and Medigap premiums are subjected to tax deductions.
Part A usually is not deductible if you make monthly payments. If you do not have social security, and didn’t pay Medicare taxes while you were employed, Part A premiums may qualify for deductions.
You can either deduct the amount that surpasses a certain amount of your Anual Gross Income (AGI), depending on your age. If you or your spouse were older than 65 in 2018, the deductible amount would be what exceeds 7.5% of your AGI. If you are not older than 65, the amount is 10% of your AGI.
Medical costs are only considered as a deductible if they are itemized within personal income tax returns.
Plan G is deductible as a medical expense on Schedule A for Form 1040. Like Part B and Part D, you only subtract the cost that surpasses a specific portion of your AGI.
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