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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're self-employed and receive Medicare, you may be able to deduct all your Medicare insurance premiums.The IRS has recently ruled that Medicare recipients who have self-employment income may deduct the premiums they pay for Medicare coverage, the same as the premiums for any other type of health insurance.Medicare Part B premiums are about $100 per month, so this deduction can really add up.f you're self-employed and receive Medicare, you may be able to deduct all your Medicare insurance premiums.