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Can You Claim Supplemental Medicare Insurance on Taxes?

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. 

Tax Deductible Medicare Supplement Premiums 

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.

Medicare Part B Premiums Are Tax-Deductible

Medical costs are only considered as a deductible if they are itemized within personal income tax returns.

Allowable tax deductions include:

  • Medigap, Part B, and Part D premiums
  • Medicare private health insurance premiums
  • Coinsurance and co-payments for Part A, Part B, and Part D 
  • Part D donut-hole out-of-pocket expenses
  • long-term care insurance (with limits)
  •  Nursing home care
  •  Medically required Dental treatment
  • Medically required Contact lenses
  • Medically required eyeglasses 
  • Hearing aids
  • Routine check-ups and other out-of-pocket costs that are not covered under Medicare

You cannot include these in your tax deductions:

  • Supplements or Vitamins (check with the provider if your doctor prescribed them)
  • Non-prescription drugs 
  • Prescription drugs bought outside of the United States
  • Part B or Part D fines on overdue premiums
  • Medical payments made by an insurance company etc. 

Is Medicare Supplement Plan G Coverage Tax-Deductible?

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.

Comparing Supplemental Medicare Quotes

Do you feel overwhelmed with all of your supplemental Medicare options? Take the stress out of searching for adequate, reliable, and low-cost supplemental Medicare by speaking with a Licensed Medicare Agent. 

On 2020Medicare.us, you can compare, shop, and speak with an agent within minutes, with no pressure! Get your free instant quote by entering your zip code: free supplemental Medicare plan quotes for 2020.