Is Medicare Supplemental Insurance Deductible?
Medicare supplemental insurance is more likely to be deductible for someone who happens to be dependent upon an employer. The person who happens to be self employed is going to have a harder time finding a legal way in order to be able to deduct their Medicare supplemental insurance from their tax return. There has been legislation such as the Hire Act which was guided through the United States Congress by people like Max Baucus which may make it easier for a self employed person to be able to deduct Medicare supplemental insurance from their tax return.
Federal Deductions
Business owners can now deduct things like their Medicare supplemental insurance costs for purposes of paying the self employment tax. The self employment tax is something that can inhibit many business owners who now are on Medicare so it is good that there is a federal deduction available to help with the issues associated with health care and the self employment tax. There are twelve types of Medigap insurance and they are federally tax deductible. You can put the deductions under the traditional itemized deduction list.
Tax Credits
Some states have different tax deductions when it comes to your health care costs. Some states can give up to a thirty percent tax credit for your Medicare supplemental insurance while other states only give somewhere from five to ten percent worth in deductions. People who are on Medicare often get less help with tax deductions when it comes to their health care needs because people often incorrectly assume that Medicare covers one hundred percent of your health care costs. People who happen to have a high amount of prescription medications to take are certainly in need of some sort of tax relief to help cover those costs.
Related posts:
- Who Needs Medicare Supplemental Insurance?
- Is Senior Volunteer Work Tax Deductible?
- How Does A High Deductible Medicare Supplement Plan Work?
- When Do I Get Medicare Supplemental Insurance?
- Does Medicare Supplemental Insurance Cover VA Services?
