Itemizing deductions lets you deduct medical expenses that you pay.
Medicare Part B is optional medical insurance that covers doctors' services, outpatient hospital care, durable medical equipment and some other medical services and supplies. You pay a monthly premium for Part B, based on your income and eligibility date (ranging from $104.90 to $335.70 a month in 2013). If you itemize your deductions on Form 1040, Schedule A, you can deduct the premium for Medicare Part B as a medical expense.
Medical Expense Definition
The Internal Revenue Service (IRS) defines medical expenses as the "costs of diagnosis, cure, mitigation, treatment, or prevention of disease, and the costs for treatments affecting any part or function of the body." According to the IRS, medical expenses include the premiums you pay for insurance that cover the expenses of medical care.
Getting Medicare Part B
If you already get Social Security benefits, you will be automatically enrolled in Medicare Part A and Part B effective the month you are 65. You do have the option to decline Part B; however, if you later decide you want to enroll in Part B, you may have to pay a late enrollment fee. If you are approaching 65 and not receiving Social Security benefits or Medicare, you can apply for both at the same time. It's important to apply three months before the month you turn 65, otherwise the start date of your Medicare Part B coverage will be delayed. To apply, call or visit your local Social Security office. You can find the phone number and address of the nearest office at socialsecurity.gov. Online applications are accepted as well.
Alternative to Part B
If you do not want Medicare Parts A and B, you can enroll in Medicare Part C, called a Medicare Advantage Plan. You buy a Medicare Advantage Plan from private companies approved by Medicare. The premiums for these plans are also tax deductible as a medical expense if you itemize your deductions on Form 1040, Schedule A.
Another Tax Deduction
If you buy a Medicare prescription drug plan (Medicare Part D), you can also include that premium as a medical expense.
Tags: Medicare Part, medical expenses, Social Security, 1040 Schedule, Advantage Plan