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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.
Half of the Medicare tax, or 1.45 percent, is paid for by the employer. The other half of the Medicare tax, also 1.45 percent, is paid for by the employee. The self-employed person pays both halves, but takes a deduction for the employer's portion of Medicare as a deduction against the income tax.