Where is the health insurance premium in QuickBooks Online?
It's good to see you here in the Community, @cpagirl. In QuickBooks Online, the option for Employee Deduction to post to an Expense account is unavailable. Under the Payroll Settings, in the Other Liability & Asset Accounts, it's where the Health Insurance Premium is located.
How do I Enter my Medicare premiums on my taxes?
First, when you enter your SSA-1099 to report your social security benefits, you'll see entry boxes for the various Medicare types. When you enter your premiums on this page, TurboTax will automatically carry them to the itemized deduction section for inclusion with Medical Expenses.
What are the tax schedule line items that Quicken uses?
The tax schedule line items Quicken uses include these forms and schedules: 1099-G - Used to report certain government payments from federal, state, or local governments. 1099-Misc - Used to report miscellaneous income received and direct sales of consumer goods for resale.
What are the parts of Medicare?
Part A, Part B, Part C and Part D each describe one part of the services provided by Medicare, and once you understand the coverage of each part, you're ready to explore Medicare.
What is Medicare Part A and B?
Medicare Parts A and B are called traditional Medicare. Together they cover most of the medical care and treatments your parents will normally require. But some items are not covered and must be paid out-of-pocket, like the deductible for hospital charges and 20 percent of doctors' fees. Seniors worried about that gap can purchase private Medicare supplemental insurance, commonly referred to as Medigap insurance, which reimburses them for these out-of-pocket expenses. Medigap supplements traditional Medicare; it does not replace it.
Can my parents get Medicare at 65?
If your parents are receiving Social Security benefits when they turn 65, they're automatically enrolled in Medicare Part A and are eligible to purchase Part B. However, if they elect to hold off on Social Security until after 65, they must enroll themselves — and timing is critical.
Self-employed health insurance deduction for Medicare premiums
Self-employed people (who earn a profit from their self-employment) are allowed to deduct their health insurance premiums on Schedule 1 of the 1040, as an “above the line” deduction — which means it lowers their AGI.
Above-the-line deduction for people who are self-employed
If you’re self-employed, the self-employed health insurance deduction — putting your Medicare premiums on Schedule 1 of your 1040 — is the most direct way to reduce your tax burden. And as noted above, this is an “above-the-line” deduction, which means it reduces your adjusted gross income.
Additional considerations
So, let’s review: You’re self-employed, your business made money (congratulations!), and you’re ready to file. Here are few more things to remember before you get started.
Another alternative: Using your HSA funds to pay Medicare premiums
If you have a health savings account (HSA) , know that you can withdraw tax-free money from the account and use it to pay your premiums for Medicare Parts A, B, C, and D (but not Medigap premiums). This is an alternative to deducting your premiums on your tax return, since you can’t do both.