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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.
Social Security (FICA) and Medicare Deduction A taxpayer may claim a deduction for the amount contributed in the taxable year to FICA or a Railroad Retirement Plan, or to a U.S. or Massachusetts Retirement fund up to $2,000. 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.