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For example, younger persons who are still working probably arenât on Medicare and are still paying into the system by a rate of 6.2% of their annual earnings. Elderly persons on Medicare can use the IRS tax deduction to reduce their tax burden by claiming costs associated with Medicare payments.
If you have Medicare or Medigap and are self-employed, the IRS can deduct your premiums. This includes premiums for all four Medicare Parts (A, B, C, and D). If you have long-term care insurance, you can deduct your premiums for long-term care, whether you work for someone or are self-employed.