Medicare Premiums - How to Deduct 415-25-05-05-10

(Revised 10/00 ML #2629)

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The amount of the Medicare premiums can be deducted from gross income, unless the premiums are paid by the Qualified Medicare Beneficiary Program or the Special Low-Income Medicare Beneficiary Program.

 

Alternative 1:

Since Social Security checks usually have Medicare premiums deducted already, and since it is often difficult to verify the amount of the Medicare premiums, it will NOT be necessary to separate out the amount of the Medicare premiums to determine the gross amount of the social security check. Enter the amount of the social security check in Section III of the worksheet, SFN 435, and verify it. Do NOT enter the amount of the Medicare premium in Section II-A. Use the explanations column to explain that the amount of the social security check listed is net.

 

Alternative 2:

If you do separate the amount of the Medicare premiums, enter the amount of the gross social security check in Section III and enter the amount of the Medicare premium in Section II-A.

 

Whichever method is used, an explanation must be entered in the explanation column.