IRS Says the Self-Employed Can Deduct Medicare Premiums.

The Internal Revenue Service's Office of Chief Counsel on Friday said that self-employed taxpayers can deduct Medicare premiums in the same way they can deduct health insurance premiums. The letter clarifies a little-noticed change in the IRS position on this. The 2010 Form 1040 instructions and Publication 535 started permitting self-employed taxpayers to take the deduction, but at that time the IRS offered no guidance on the change. The chief counsel's letter states that eligible taxpayers can go back and deduct Medicare premiums for tax years that are still open.  (Source Journal Of Accountancy-July, 2012)