The internal revenue service is permitting for the first time self-employed people to deduct their Medicare Part B health insurance premiums. Prior to the 2010 tax year, the IRS did not permit the deduction to seniors who paid Medicare Part B health insurance premiums. IRS officials did not announce the change, which is unusual. The deduction taken on Line 29 of the Form 1040 standard tax form, even applies to people who do not itemize deductions. Taxpayers should ignore the statement in Publication 535, Business Expenses, indicating the deduction is not permitted and instead should follow the instructions for Form 1040. The old Publication 535 instructions say, “Medicare Part B premiums are not cnsidered medical insurance premiums for purposes of the self-employed health insurance deduction.” The change came too late to be included in the Publication 535 instructions, last updated in 2009. That document will be updated and posted at when completed. Anyone who is self-employed, regardless of age, may deduct the premiums paid for health insurance, under certain conditions. Among those conditions are that the insurance be established in the name of the business or, more often, in the name of the person who runs the business.