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Deductions For People On Medicare. For taxation purposes a person can claim a Medicare Deduction to help minimize the amount of taxes that they owe. That is that if a person is required to pay a substantial amount of costs as per there Medicare plan, those costs can be offset by the tax deduction.
FICA tax is also known as the Social Security tax. Specifically, this deduction is allowed for the following: 1  taxes paid to the U.S. under the provisions of the Federal Insurance Contributions Act (FICA), Social Security;2  taxes paid to the U.S. under the provisions of the Federal Railroad Retirement Act, Tier I and II; Medicare premiums deducted from social security benefits or retirement payments are not an allowable deduction since the benefits are not included in gross income. 2  Nonresidents and part-year residents may claim this deduction only if it is directly related to taxable income reported on Form 1-NR/PY.