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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.
Medicare premiums deducted from social security benefits or retirement payments are not an allowable deduction since the benefits are not included in gross income. Self-employed individuals may deduct the employment tax paid during the taxable year up to a maximum of $2,000.ocial Security (FICA) and Medicare Deduction A taxpayer may claim a deduction for the amount contributed in the taxable year to FICA or a Railroad Retirement Plan, or to a U.S. or Massachusetts Retirement fund up to $2,000.