Medicare premiums (with IRMAA) deducted from SS benefit — tax deductible?

[MattC899781]

2023 will be my first full year receiving social security, I started very late last year. I have my medicare premiums deducted from my payments, and I elected a 10% voluntary withholding rate.

Looking at my information on ssa.gov, I see they are withholding 10% of the balance after the medicare premium is subtracted. Elsewhere I read that these premiums are only tax-deductible if I itemize, and then only beyond the 7.5% level. I think either I'm heading for an unexpected tax bill for 2023, or I haven't found the full story on taxability of those premiums.

What's the true story? I can imagine it working like the pre-tax payment of my medical premiums when I was working. But then, I have quite the imagination.

[sktn77a]

"Elsewhere I read that these premiums are only tax-deductible if I itemize, and then only beyond the 7.5% level."

That is correct.

[shamit]

I believe you are correct that the tax is after deductions.  I have them withholding at a 12% rate.  And it comes out exactly at 12% of my payment after the part b premium is deducted and the part d premium that is automatically withheld from my social security payment.  It appears you are seeing the same thing.

[GailL1]

@MattC899781 wrote 

Looking at my information on ssa.gov, I see they are withholding 10% of the balance after the medicare premium is subtracted. Elsewhere I read that these premiums are only tax-deductible if I itemize, and then only beyond the 7.5% level.

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I don’t think your 1st sentence is right - if you elected the % that you want them to withhold, it is based on the whole SS payment before any (Part B) deductions (including any IRMMA) or anything else that is deducted since many people may have their MA premiums or PDP premiums also deducted.  

The 1099 - SSA does give you a total synopsis of the total benefit paid, total Part B premiums (with any IRMMA), other premiums that are deductible and any taxes you have authorized to be deducted.

If you have other income in retirement, the tax on Social Security benefits might be what gets you on your taxes but these aren’t actually income tax since they go back into the SS Trust Fund to help preserve the program.

SSA.gov - Taxes on One’s SS benefit