Explaining a recent reversal of a long-held IRS stance, the Office of Chief Counsel on July 13 advised IRS attorneys that self-employed individuals may deduct Medicare premiums from their self-employment income. Chief Counsel Advice (CCA) 201228037 clarifies an IRS position that previously appeared only in instructions to Form 1040, U.S. Individual Income Tax Return, and IRS publications for tax years 2010 and forward allowing the deduction.
Taxpayers who failed to deduct Medicare premiums for prior tax years within the statute of limitation may file amended returns to claim the deduction.
Read the full story from the Journal of Accountancy.