Self-Employed May Be Able to Amend

The IRS has clarified that all Medicare premiums (Part A, B, C and D) are insurance constituting medical care and therefore may be deducted as an above-the-line deduction for self-employed individuals.  For purpose of this deduction, self-employed includes partners and greater than 2% shareholders in S-Corps.  Such deduction is taken on line 29 of Form 1040 just like other health insurance premiums.  Taxpayers who failed to claim this deduction may file an amended return to claim a refund for all open years.

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