Some good news for small businesses owners on Medicare Part B. The IRS is permitting for the 1st time self-employed people to deduct their Medicare Part B healthcare premiums.
What is Part B? Part B helps cover medically-necessary services like doctors’ services, outpatient care, durable medical equipment, home health services, and other medical services. Part B also covers some preventive services. The costs for Medicare part B have substantially risen form a modest $54 to a $99.90 minimum and now indexed for income.
Table 1: Part B Monthly Premium | ||
Beneficiaries who file anindividual tax return with income | Beneficiaries who file a joint tax return with income | |
| Your 2012 Part B Monthly Premium Is | If Your Yearly Income Is | |
$99.90 | $85,000 or less | $170,000 or less |
$139.90 | $85,001-$107,000 | $170,001-$214,000 |
$199.80 | $107,001-$160,000 | $214,001-$320,000 |
$259.70 | $160,001-$214,000 | $320,001-$428,000 |
$319.70 | Above $214,000 | Above $428,000 |
source: www.medicare.gov
Prior to the 2010 tax year, the IRS did not permit the deduction to seniors who paid Medicare Part B health insurance premiums, according to a Bloomberg report. Strangely the IRS did not release of this announcement but the deduction is on line 29 of the new 1040 tax form and applies to people who do not claim a tax deduction.
Anyone who is self-employed, regardless of age, may deduct the premiums paid for health insurance, under certain conditions such as insurance established under the business or in the name of the person who runs the business.
This posting is not necessarily tax advise and it is recommend to check with you accounting professional before filing 2011Tax returns.
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