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1040 Ez File

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1040 Ez File

1040 ez file Publication 525 - Introductory Material Table of Contents Future Developments What's New Reminders IntroductionAssignment of income. 1040 ez file Ordering forms and publications. 1040 ez file Tax questions. 1040 ez file Useful Items - You may want to see: Future Developments For the latest information about developments related to Publication 525, such as legislation enacted after it was published, go to www. 1040 ez file irs. 1040 ez file gov/pub525. 1040 ez file What's New Health flexible spending arrangements (health FSAs) under cafeteria plans. 1040 ez file  For plan years beginning after 2012, health FSAs are subject to a $2,500 limit on salary reduction contributions. 1040 ez file For plan years beginning after 2013, the $2,500 limit is subject to an inflation adjustment. 1040 ez file Itemized deduction for medical expenses. 1040 ez file  Beginning in 2013, an itemized deduction is generally allowed for uncompensated medical expenses that exceed 10% of adjusted gross income (AGI). 1040 ez file If an individual or an individual’s spouse was born before January 2, 1949, the deduction is allowed for expenses that exceed 7. 1040 ez file 5% of AGI. 1040 ez file Additional Medicare Tax. 1040 ez file  Beginning in 2013, a 0. 1040 ez file 9% Additional Medicare Tax applies to Medicare wages, railroad retirement (RRTA) compensation, and self-employment income that are more than: $125,000 if married filing separately, $250,000 if married filing jointly, or $200,000 if single, head of household, or qualifying widow(er). 1040 ez file For more information, see Form 8959 and its instructions. 1040 ez file Net Investment Income Tax (NIIT). 1040 ez file  Beginning in 2013, the NIIT applies at a rate of 3. 1040 ez file 8% to certain net investment income of individuals, estates and trusts that have income above the threshold amounts. 1040 ez file Individuals will owe the tax if they have net investment income and also have modified adjusted gross income over the following thresholds for their filing status: Married filing jointly, $250,000; Married filing separately, $125,000; Single, $200,000; Head of household (with qualifying person), $200,000; Qualifying widow(er) with dependent child, $250,000. 1040 ez file For more information, see Form 8960 and its instructions. 1040 ez file Reminders Terrorist attacks. 1040 ez file  You can exclude from income certain disaster assistance, disability, and death payments received as a result of a terrorist or military action. 1040 ez file For more information, see Publication 3920, Tax Relief for Victims of Terrorist Attacks. 1040 ez file Gulf oil spill. 1040 ez file  You are required to include in your gross income payments you received for lost wages, lost business income, or lost profits. 1040 ez file See Gulf oil spill under Other Income, later. 1040 ez file Qualified settlement income. 1040 ez file . 1040 ez file  If you are a qualified taxpayer, you can contribute all or part of your qualified settlement income, up to $100,000, to an eligible retirement plan, including an IRA. 1040 ez file Contributions to eligible retirement plans, other than a Roth IRA or a designated Roth contribution, reduce the qualified settlement income that you must include in income. 1040 ez file See Exxon Valdez settlement income under Other Income, later. 1040 ez file Foreign income. 1040 ez file  If you are a U. 1040 ez file S. 1040 ez file citizen or resident alien, you must report income from sources outside the United States (foreign income) on your tax return unless it is exempt by U. 1040 ez file S. 1040 ez file law. 1040 ez file This is true whether you reside inside or outside the United States and whether or not you receive a Form W-2, Wage and Tax Statement, or Form 1099 from the foreign payer. 1040 ez file This applies to earned income (such as wages and tips) as well as unearned income (such as interest, dividends, capital gains, pensions, rents, and royalties). 1040 ez file If you reside outside the United States, you may be able to exclude part or all of your foreign source earned income. 1040 ez file For details, see Publication 54, Tax Guide for U. 1040 ez file S. 1040 ez file Citizens and Resident Aliens Abroad. 1040 ez file Disaster mitigation payments. 1040 ez file . 1040 ez file  You can exclude from income grants you use to mitigate (reduce the severity of) potential damage from future natural disasters that are paid to you through state and local governments. 1040 ez file For more information, see Disaster mitigation payments under Welfare and Other Public Assistance Benefits, later. 1040 ez file Qualified joint venture. 1040 ez file  A qualified joint venture conducted by you and your spouse may not be treated as a partnership if you file a joint return for the tax year. 1040 ez file See Partnership Income under Business and Investment Income, later. 1040 ez file Photographs of missing children. 1040 ez file  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. 1040 ez file Photographs of missing children selected by the Center may appear in this publication on pages that otherwise would be blank. 1040 ez file You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. 1040 ez file Introduction You can receive income in the form of money, property, or services. 1040 ez file This publication discusses many kinds of income and explains whether they are taxable or nontaxable. 1040 ez file It includes discussions on employee wages and fringe benefits, and income from bartering, partnerships, S corporations, and royalties. 1040 ez file It also includes information on disability pensions, life insurance proceeds, and welfare and other public assistance benefits. 1040 ez file Check the index for the location of a specific subject. 1040 ez file In most cases, an amount included in your income is taxable unless it is specifically exempted by law. 1040 ez file Income that is taxable must be reported on your return and is subject to tax. 1040 ez file Income that is nontaxable may have to be shown on your tax return but is not taxable. 1040 ez file Constructively received income. 1040 ez file   You are generally taxed on income that is available to you, regardless of whether it is actually in your possession. 1040 ez file    A valid check that you received or that was made available to you before the end of the tax year is considered income constructively received in that year, even if you do not cash the check or deposit it to your account until the next year. 1040 ez file For example, if the postal service tries to deliver a check to you on the last day of the tax year but you are not at home to receive it, you must include the amount in your income for that tax year. 1040 ez file If the check was mailed so that it could not possibly reach you until after the end of the tax year, and you otherwise could not get the funds before the end of the year, you include the amount in your income for the next tax year. 1040 ez file Assignment of income. 1040 ez file   Income received by an agent for you is income you constructively received in the year the agent received it. 1040 ez file If you agree by contract that a third party is to receive income for you, you must include the amount in your income when the third party receives it. 1040 ez file Example. 1040 ez file You and your employer agree that part of your salary is to be paid directly to one of your creditors. 1040 ez file You must include that amount in your income when your creditor receives it. 1040 ez file Prepaid income. 1040 ez file   In most cases, prepaid income, such as compensation for future services, is included in your income in the year you receive it. 1040 ez file However, if you use an accrual method of accounting, you can defer prepaid income you receive for services to be performed before the end of the next tax year. 1040 ez file In this case, you include the payment in your income as you earn it by performing the services. 1040 ez file Comments and suggestions. 1040 ez file   We welcome your comments about this publication and your suggestions for future editions. 1040 ez file   You can write to us at the following address: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. 1040 ez file NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. 1040 ez file Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. 1040 ez file   You can send your comments from www. 1040 ez file irs. 1040 ez file gov/formspubs/. 1040 ez file Click on “More Information” and then on “Comment on Tax Forms and Publications. 1040 ez file ”   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. 1040 ez file Ordering forms and publications. 1040 ez file   Visit www. 1040 ez file irs. 1040 ez file gov/formspubs/ to download forms and publications, call 1-800-TAX-FORM (1-800-829-3676), or write to the address below and receive a response within 10 days after your request is received. 1040 ez file Internal Revenue Service 1201 N. 1040 ez file Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. 1040 ez file   If you have a tax question, check the information available on IRS. 1040 ez file gov or call 1-800-829-1040. 1040 ez file We cannot answer tax questions sent to either of the above addresses. 1040 ez file Useful Items - You may want to see: Publication 334 Tax Guide for Small Business 523 Selling Your Home 527 Residential Rental Property 541 Partnerships 544 Sales and Other Dispositions of Assets 550 Investment Income and Expenses 559 Survivors, Executors, and Administrators 575 Pension and Annuity Income 915 Social Security and Equivalent Railroad Retirement Benefits 970 Tax Benefits for Education 4681 Canceled Debts, Foreclosures, Repossessions, and Abandonments Form (and Instructions) 1040 U. 1040 ez file S. 1040 ez file Individual Income Tax Return 1040A U. 1040 ez file S. 1040 ez file Individual Income Tax Return 1040EZ Income Tax Return for Single and Joint Filers With No Dependents 1040NR U. 1040 ez file S. 1040 ez file Nonresident Alien Income Tax Return 1099-R Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. 1040 ez file W-2 Wage and Tax Statement  See How To Get Tax Help , near the end of this publication, for information about getting these publications. 1040 ez file Prev  Up  Next   Home   More Online Publications
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Contact My Local Office in Illinois

Face-to-face Tax Help

IRS Taxpayer Assistance Centers (TACs) are your source for personal tax help when you believe your tax issue can only be handled face-to-face. No appointment is necessary.

Keep in mind, many questions can be resolved online without waiting in line. Through IRS.gov you can:
• Set up a payment plan.
• Get a transcript of your tax return.
• Make a payment.
• Check on your refund.
• Find answers to many of your tax questions.

We are now referring all requests for tax return preparation services to other available resources. You can take advantage of free tax preparation through Free File, Free File Fillable Forms or through a volunteer site in your community. To find the nearest volunteer site location or to get more information about Free File, go to the top of the page and enter “Free Tax Help” in the Search box.

If you have a tax account issues and feel that it requires talking with someone face-to-face, visit your local TAC.

Caution:  Many of our offices are located in Federal Office Buildings. These buildings may not allow visitors to bring in cell phones with camera capabilities.

Multilingual assistance is available in every office. Hours of operation are subject to change.

Before visiting your local office click on "Services Provided" in the chart below to see what services are available. Services are limited and not all services are available at every TAC office and may vary from site to site. You can get these services on a walk-in basis.

City Street Address Days/Hours of Service Telephone*
Bloomington 301 S. Prospect Rd.
Bloomington, IL 61704

Monday-Friday - 8:30 a.m.-4:30 p.m.
(Closed for lunch 11:30 a.m.-12:30 p.m.)

 

Services Provided

(309) 661-0032
Champaign 310 W. Church St.
Champaign, IL 61820

Monday-Friday - 8:30 a.m.-4:30 p.m.
(Closed for lunch 11:30 a.m.-12:30 p.m.)

 

Services Provided

(217) 398-5210
Chicago 230 S. Dearborn St.
Chicago, IL 60604

Monday-Friday - 8:30 a.m.-4:30 p.m.

 

**This office will be open until 6:00 p.m. on 4/14 & 4/15**


Services Provided

(312) 292-4912
Decatur 306 W. Eldorado
Decatur, IL 62522

Monday-Friday - 8:30 a.m.-4:30 p.m.
(Closed for lunch 11:30 a.m.-12:30 p.m.)
 

Services Provided

(217) 862-6015
Downers Grove 2001 Butterfield Rd.
Downers Grove, IL 60515

Monday-Friday - 8:30 a.m.-4:30 p.m.

 

**This office will be open until 6:00 p.m. on 4/14 & 4/15**

 

Services Provided

(630) 493-5291
Fairview Heights 380 Fountain Office Court
Fairview Heights, IL 62208

Monday-Friday - 8:30 a.m.-4:30 p.m.
(Closed for lunch 11:30 a.m.-12:30 p.m.)

 

**This office will be open until 6:00 p.m. on 4/14 & 4/15**

 

Services Provided

(618) 632-2567
Galesburg 2066 Windish Dr.
Galesburg, IL 61401 

Monday-Friday - 8:30 a.m.-4:30 p.m.
(Closed for lunch 11:30 a.m.-12:30 p.m.)

 

Services Provided

(309) 345-4158 
Mt. Vernon  105 S. Sixth St.
Mt. Vernon, IL 62864 

Monday-Friday - 8:30 a.m.-4:30 p.m.
(Closed for lunch 11:30 a.m.-12:30 p.m.) 

 

**This office will be closed on 3/31**

 

Services Provided

(618) 632-2567 
Orland Park  14479 John Humphrey Drive,
Orland Park, IL 60462 

Monday-Friday - 8:30 a.m. - 4:30 p.m.

 

**This office will be open until 6:00 p.m. on 4/14 & 4/15**

 

Services Provided

(708) 873-8310 
Peoria  2415 West Cornerstone Ct.
Peoria, IL 61614 

Monday-Friday - 8:30 a.m.-4:30 p.m.
(Closed for lunch 11:30 a.m.-12:30 p.m.)

 

**This office will be open until 6:00 p.m. on 4/14 & 4/15**

 

Services Provided

(309) 671-7264 
Quincy  3701 East Lake Centre Drive,
Quincy, IL 62305 

Monday-Friday - 8:30 a.m.-4:30 p.m.
(Closed for lunch 11:30 a.m.-12:30 p.m.) 

 

Services Provided

(217) 224-8208 
Rockford  211 S. Court St.
Rockford, IL 61101 

Monday-Friday - 8:30 a.m.-4:30 p.m.
(Closed for lunch 12:00 noon - 1:00 p.m.) 

 

Services Provided

(815) 334-7026 
Schiller Park  5100 River Road
Schiller Park, IL 60176 

Monday-Friday - 8:30 a.m.-4:30 p.m.

 

**This office will be open until 6:00 p.m. on 4/14 & 4/15**
 

Services Provided

(847) 671-7541 
Springfield  3101 Constitution Drive
Springfield, IL 62704 

Monday-Friday - 8:30 a.m.-4:30 p.m. 
 

Services Provided

(217) 862-6015 

* Note: The phone numbers in the chart above are not toll-free for all locations. When you call, you will reach a recorded business message with information about office hours, locations and services provided in that office. If face-to-face assistance is not a priority for you, you may also get help with IRS letters or resolve tax account issues by phone, toll free at 1-800-829-1040 (individuals) or 1-800-829-4933 (businesses).

For information on where to file your tax return please see Where to File Addresses.

The Taxpayer Advocate Service: Call 312-292-3800 in Chicago or (217) 862-6382 in Springfield, or 1-877-777-4778 elsewhere, or see Publication 1546, The Taxpayer Advocate Service of the IRS. For further information, see  Tax Topic 104.

Partnerships

IRS and organizations all over the country are partnering to assist taxpayers. Through these partnerships, organizations are also achieving their own goals. These mutually beneficial partnerships are strengthening outreach efforts and bringing education and assistance to millions.

For more information about these programs for individuals and families, contact the Stakeholder Partnerships, Education and Communication Office at:

Internal Revenue Service
230 S. Dearborn St.
Room 2400, Stop 6604-CHI
Chicago, IL 60604

For more information about these programs for businesses, your local Stakeholder Liaison office establishes relationships with organizations representing small business and self-employed taxpayers. They provide information about the policies, practices and procedures the IRS uses to ensure compliance with the tax laws. To establish a relationship with us, use this list to find a contact in your state:

Stakeholder Liaison (SL) Phone Numbers for Organizations Representing Small Businesses and Self-employed Taxpayers.

Page Last Reviewed or Updated: 28-Mar-2014

The 1040 Ez File

1040 ez file 6. 1040 ez file   Insurance Table of Contents What's New Introduction Topics - This chapter discusses: Useful Items - You may want to see: Deductible PremiumsSelf-Employed Health Insurance Deduction Nondeductible Premiums Capitalized Premiums When To Deduct Premiums What's New Retiree drug subsidy. 1040 ez file  Beginning in 2013, sponsors of certain qualified retiree prescription drug plans must account for the subsidy received by reducing the amount of qualified retiree prescription drug plans expense by the subsidy received (taking into account the taxpayer's accounting method). 1040 ez file For more information, see the retiree drug subsidy frequently asked questions on IRS. 1040 ez file gov. 1040 ez file Introduction You generally can deduct the ordinary and necessary cost of insurance as a business expense if it is for your trade, business, or profession. 1040 ez file However, you may have to capitalize certain insurance costs under the uniform capitalization rules. 1040 ez file For more information, see Capitalized Premiums , later. 1040 ez file Topics - This chapter discusses: Deductible premiums Nondeductible premiums Capitalized premiums When to deduct premiums Useful Items - You may want to see: Publication 15-B Employer's Tax Guide to Fringe Benefits 525 Taxable and Nontaxable Income 538 Accounting Periods and Methods 547 Casualties, Disasters, and Thefts Form (and Instructions) 1040 U. 1040 ez file S. 1040 ez file Individual Income Tax Return See chapter 12 for information about getting publications and forms. 1040 ez file Deductible Premiums You generally can deduct premiums you pay for the following kinds of insurance related to your trade or business. 1040 ez file Insurance that covers fire, storm, theft, accident, or similar losses. 1040 ez file Credit insurance that covers losses from business bad debts. 1040 ez file Group hospitalization and medical insurance for employees, including long-term care insurance. 1040 ez file If a partnership pays accident and health insurance premiums for its partners, it generally can deduct them as guaranteed payments to partners. 1040 ez file If an S corporation pays accident and health insurance premiums for its more-than-2% shareholder-employees, it generally can deduct them, but must also include them in the shareholder's wages subject to federal income tax withholding. 1040 ez file See Publication 15-B. 1040 ez file Liability insurance. 1040 ez file Malpractice insurance that covers your personal liability for professional negligence resulting in injury or damage to patients or clients. 1040 ez file Workers' compensation insurance set by state law that covers any claims for bodily injuries or job-related diseases suffered by employees in your business, regardless of fault. 1040 ez file If a partnership pays workers' compensation premiums for its partners, it generally can deduct them as guaranteed payments to partners. 1040 ez file If an S corporation pays workers' compensation premiums for its more-than-2% shareholder-employees, it generally can deduct them, but must also include them in the shareholder's wages. 1040 ez file Contributions to a state unemployment insurance fund are deductible as taxes if they are considered taxes under state law. 1040 ez file Overhead insurance that pays for business overhead expenses you have during long periods of disability caused by your injury or sickness. 1040 ez file Car and other vehicle insurance that covers vehicles used in your business for liability, damages, and other losses. 1040 ez file If you operate a vehicle partly for personal use, deduct only the part of the insurance premium that applies to the business use of the vehicle. 1040 ez file If you use the standard mileage rate to figure your car expenses, you cannot deduct any car insurance premiums. 1040 ez file Life insurance covering your officers and employees if you are not directly or indirectly a beneficiary under the contract. 1040 ez file Business interruption insurance that pays for lost profits if your business is shut down due to a fire or other cause. 1040 ez file Self-Employed Health Insurance Deduction You may be able to deduct premiums paid for medical and dental insurance and qualified long-term care insurance for yourself, your spouse, and your dependents. 1040 ez file The insurance can also cover your child who was under age 27 at the end of 2013, even if the child was not your dependent. 1040 ez file A child includes your son, daughter, stepchild, adopted child, or foster child. 1040 ez file A foster child is any child placed with you by an authorized placement agency or by judgment, decree, or other order of any court of competent jurisdiction. 1040 ez file One of the following statements must be true. 1040 ez file You were self-employed and had a net profit for the year reported on Schedule C (Form 1040), Profit or Loss From Business; Schedule C-EZ (Form 1040), Net Profit From Business; or Schedule F (Form 1040), Profit or Loss From Farming. 1040 ez file You were a partner with net earnings from self-employment for the year reported on Schedule K-1 (Form 1065), Partner's Share of Income, Deductions, Credits, etc. 1040 ez file , box 14, code A. 1040 ez file You used one of the optional methods to figure your net earnings from self-employment on Schedule SE. 1040 ez file You received wages in 2013 from an S corporation in which you were a more-than-2% shareholder. 1040 ez file Health insurance premiums paid or reimbursed by the S corporation are shown as wages on Form W-2, Wage and Tax Statement. 1040 ez file The insurance plan must be established, or considered to be established as discussed in the following bullets, under your business. 1040 ez file For self-employed individuals filing a Schedule C, C-EZ, or F, a policy can be either in the name of the business or in the name of the individual. 1040 ez file For partners, a policy can be either in the name of the partnership or in the name of the partner. 1040 ez file You can either pay the premiums yourself or your partnership can pay them and report the premium amounts on Schedule K-1 (Form 1065) as guaranteed payments to be included in your gross income. 1040 ez file However, if the policy is in your name and you pay the premiums yourself, the partnership must reimburse you and report the premium amounts on Schedule K-1 (Form 1065) as guaranteed payments to be included in your gross income. 1040 ez file Otherwise, the insurance plan will not be considered to be established under your business. 1040 ez file For more-than-2% shareholders, a policy can be either in the name of the S corporation or in the name of the shareholder. 1040 ez file You can either pay the premiums yourself or your S corporation can pay them and report the premium amounts on Form W-2 as wages to be included in your gross income. 1040 ez file However, if the policy is in your name and you pay the premiums yourself, the S corporation must reimburse you and report the premium amounts on Form W-2 as wages to be included in your gross income. 1040 ez file Otherwise, the insurance plan will not be considered to be established under your business. 1040 ez file Medicare premiums you voluntarily pay to obtain insurance in your name that is similar to qualifying private health insurance can be used to figure the deduction. 1040 ez file If you previously filed returns without using Medicare premiums to figure the deduction, you can file timely amended returns to refigure the deduction. 1040 ez file For more information, see Form 1040X, Amended U. 1040 ez file S. 1040 ez file Individual Income Tax Return. 1040 ez file Amounts paid for health insurance coverage from retirement plan distributions that were nontaxable because you are a retired public safety officer cannot be used to figure the deduction. 1040 ez file Take the deduction on Form 1040, line 29. 1040 ez file Qualified long-term care insurance. 1040 ez file   You can include premiums paid on a qualified long-term care insurance contract when figuring your deduction. 1040 ez file But, for each person covered, you can include only the smaller of the following amounts. 1040 ez file The amount paid for that person. 1040 ez file The amount shown below. 1040 ez file Use the person's age at the end of the tax year. 1040 ez file Age 40 or younger–$360 Age 41 to 50–$680 Age 51 to 60–$1,360 Age 61 to 70–$3,640 Age 71 or older–$4,550 Qualified long-term care insurance contract. 1040 ez file   A qualified long-term care insurance contract is an insurance contract that only provides coverage of qualified long-term care services. 1040 ez file The contract must meet all the following requirements. 1040 ez file It must be guaranteed renewable. 1040 ez file It must provide that refunds, other than refunds on the death of the insured or complete surrender or cancellation of the contract, and dividends under the contract may be used only to reduce future premiums or increase future benefits. 1040 ez file It must not provide for a cash surrender value or other money that can be paid, assigned, pledged, or borrowed. 1040 ez file It generally must not pay or reimburse expenses incurred for services or items that would be reimbursed under Medicare, except where Medicare is a secondary payer or the contract makes per diem or other periodic payments without regard to expenses. 1040 ez file Qualified long-term care services. 1040 ez file   Qualified long-term care services are: Necessary diagnostic, preventive, therapeutic, curing, treating, mitigating, and rehabilitative services, and Maintenance or personal care services. 1040 ez file The services must be required by a chronically ill individual and prescribed by a licensed health care practitioner. 1040 ez file Worksheet 6-A. 1040 ez file Self-Employed Health Insurance Deduction Worksheet Note. 1040 ez file Use a separate worksheet for each trade or business under which an insurance plan is established. 1040 ez file 1. 1040 ez file Enter the total amount paid in 2013 for health insurance coverage established under your business for 2013 for you, your spouse, and your dependents. 1040 ez file Your insurance can also cover your child who was under age 27 at the end of 2013, even if the child was not your dependent. 1040 ez file But do not include the following. 1040 ez file   Amounts for any month you were eligible to participate in a health plan subsidized by your or your spouse's employer or the employer of either your dependent or your child who was under the age of 27 at the end of 2013. 1040 ez file Any amounts paid from retirement plan distributions that were nontaxable because you are a retired public safety officer. 1040 ez file Any amounts you included on Form 8885, line 4. 1040 ez file Any qualified health insurance premiums you paid to “U. 1040 ez file S. 1040 ez file Treasury-HCTC. 1040 ez file ” Any health coverage tax credit advance payments shown in box 1 of Form 1099-H. 1040 ez file Any payments for qualified long-term care insurance (see line 2) 1. 1040 ez file   2. 1040 ez file For coverage under a qualified long-term care insurance contract, enter for each person covered the smaller of the following amounts. 1040 ez file       a) Total payments made for that person during the year. 1040 ez file       b) The amount shown below. 1040 ez file Use the person's age at the end of the tax year. 1040 ez file         $360— if that person is age 40 or younger          $680— if age 41 to 50         $1,360— if age 51 to 60         $3,640— if age 61 to 70         $4,550— if age 71 or older         Do not include payments for any month you were eligible to participate in a long-term care insurance plan subsidized by your or your spouse’s employer or the employer of either your dependent or your child who was under the age of 27 at the end of 2013. 1040 ez file If more than one person is covered, figure separately the amount to enter for each person. 1040 ez file Then enter the total of those amounts 2. 1040 ez file   3. 1040 ez file Add lines 1 and 2 3. 1040 ez file   4. 1040 ez file Enter your net profit* and any other earned income** from the trade or business under which the insurance plan is established. 1040 ez file Do not include Conservation Reserve Program payments exempt from self-employment tax. 1040 ez file If the business is an S corporation, skip to line 11 4. 1040 ez file   5. 1040 ez file Enter the total of all net profits* from: Schedule C (Form 1040), line 31; Schedule C-EZ (Form 1040), line 3; Schedule F (Form 1040), line 34; or Schedule K-1 (Form 1065), box 14, code A; plus any other income allocable to the profitable businesses. 1040 ez file Do not include Conservation Reserve Program payments exempt from self-employment tax. 1040 ez file See the Instructions for Schedule SE (Form 1040). 1040 ez file Do not include any net losses shown on these schedules. 1040 ez file 5. 1040 ez file   6. 1040 ez file Divide line 4 by line 5 6. 1040 ez file   7. 1040 ez file Multiply Form 1040, line 27, by the percentage on line 6 7. 1040 ez file   8. 1040 ez file Subtract line 7 from line 4 8. 1040 ez file   9. 1040 ez file Enter the amount, if any, from Form 1040, line 28, attributable to the same trade or business in which the insurance plan is established 9. 1040 ez file   10. 1040 ez file Subtract line 9 from line 8 10. 1040 ez file   11. 1040 ez file Enter your Medicare wages (Form W-2, box 5) from an S corporation in which you are a more-than-2% shareholder and in which the insurance plan is established 11. 1040 ez file   12. 1040 ez file Enter any amount from Form 2555, line 45, attributable to the amount entered on line 4 or 11 above, or any amount from Form 2555-EZ, line 18, attributable to the amount entered on line 11 above 12. 1040 ez file   13. 1040 ez file Subtract line 12 from line 10 or 11, whichever applies 13. 1040 ez file   14. 1040 ez file Enter the smaller of line 3 or line 13 here and on Form 1040, line 29. 1040 ez file Do not include this amount when figuring any medical expense deduction on Schedule A (Form 1040). 1040 ez file 14. 1040 ez file   * If you used either optional method to figure your net earnings from self-employment from any business, do not enter your net profit from the business. 1040 ez file Instead, enter the amount attributable to that business from Schedule SE (Form 1040), Section B, line 4b. 1040 ez file * *Earned income includes net earnings and gains from the sale, transfer, or licensing of property you created. 1040 ez file However, it does not include capital gain income. 1040 ez file Chronically ill individual. 1040 ez file   A chronically ill individual is a person who has been certified as one of the following. 1040 ez file An individual who has been unable, due to loss of functional capacity for at least 90 days, to perform at least two activities of daily living without substantial assistance from another individual. 1040 ez file Activities of daily living are eating, toileting, transferring (general mobility), bathing, dressing, and continence. 1040 ez file An individual who requires substantial supervision to be protected from threats to health and safety due to severe cognitive impairment. 1040 ez file The certification must have been made by a licensed health care practitioner within the previous 12 months. 1040 ez file Benefits received. 1040 ez file   For information on excluding benefits you receive from a long-term care contract from gross income, see Publication 525. 1040 ez file Other coverage. 1040 ez file   You cannot take the deduction for any month you were eligible to participate in any employer (including your spouse's) subsidized health plan at any time during that month, even if you did not actually participate. 1040 ez file In addition, if you were eligible for any month or part of a month to participate in any subsidized health plan maintained by the employer of either your dependent or your child who was under age 27 at the end of 2013, do not use amounts paid for coverage for that month to figure the deduction. 1040 ez file   These rules are applied separately to plans that provide long-term care insurance and plans that do not provide long-term care insurance. 1040 ez file However, any medical insurance payments not deductible on Form 1040, line 29, can be included as medical expenses on Schedule A (Form 1040), Itemized Deductions, if you itemize deductions. 1040 ez file Effect on itemized deductions. 1040 ez file   Subtract the health insurance deduction from your medical insurance when figuring medical expenses on Schedule A (Form 1040) if you itemize deductions. 1040 ez file Effect on self-employment tax. 1040 ez file   For tax years beginning before or after 2010, you cannot subtract the self-employed health insurance deduction when figuring net earnings for your self-employment tax from the business under which the insurance plan is established, or considered to be established as discussed earlier. 1040 ez file For more information, see Schedule SE (Form 1040). 1040 ez file How to figure the deduction. 1040 ez file   Generally, you can use the worksheet in the Form 1040 instructions to figure your deduction. 1040 ez file However, if any of the following apply, you must use Worksheet 6-A in this chapter. 1040 ez file You had more than one source of income subject to self-employment tax. 1040 ez file You file Form 2555, Foreign Earned Income, or Form 2555-EZ, Foreign Earned Income Exclusion. 1040 ez file You are using amounts paid for qualified long-term care insurance to figure the deduction. 1040 ez file If you are claiming the health coverage tax credit, complete Form 8885, Health Coverage Tax Credit, before you figure this deduction. 1040 ez file Health coverage tax credit. 1040 ez file   You may be able to take this credit only if you were an eligible trade adjustment assistance (TAA) recipient, alternative TAA (ATAA) recipient, reemployment trade adjustment assistance (RTAA) recipient, or Pension Benefit Guaranty Corporation (PBGC) pension recipient. 1040 ez file Use Form 8885 to figure the amount, if any, of this credit. 1040 ez file   When figuring the amount to enter on line 1 of Worksheet 6-A, do not include the following. 1040 ez file Any amounts you included on Form 8885, line 4. 1040 ez file Any qualified health insurance premiums you paid to “U. 1040 ez file S. 1040 ez file Treasury-HCTC. 1040 ez file ” Any health coverage tax credit advance payments shown in box 1 of Form 1099-H, Health Coverage Tax Credit (HCTC) Advance Payments. 1040 ez file More than one health plan and business. 1040 ez file   If you have more than one health plan during the year and each plan is established under a different business, you must use separate worksheets (Worksheet 6-A) to figure each plan's net earnings limit. 1040 ez file Include the premium you paid under each plan on line 1 or line 2 of that separate worksheet and your net profit (or wages) from that business on line 4 (or line 11). 1040 ez file For a plan that provides long-term care insurance, the total of the amounts entered for each person on line 2 of all worksheets cannot be more than the appropriate limit shown on line 2 for that person. 1040 ez file Nondeductible Premiums You cannot deduct premiums on the following kinds of insurance. 1040 ez file Self-insurance reserve funds. 1040 ez file You cannot deduct amounts credited to a reserve set up for self-insurance. 1040 ez file This applies even if you cannot get business insurance coverage for certain business risks. 1040 ez file However, your actual losses may be deductible. 1040 ez file See Publication 547. 1040 ez file Loss of earnings. 1040 ez file You cannot deduct premiums for a policy that pays for lost earnings due to sickness or disability. 1040 ez file However, see the discussion on overhead insurance, item (8), under Deductible Premiums , earlier. 1040 ez file Certain life insurance and annuities. 1040 ez file For contracts issued before June 9, 1997, you cannot deduct the premiums on a life insurance policy covering you, an employee, or any person with a financial interest in your business if you are directly or indirectly a beneficiary of the policy. 1040 ez file You are included among possible beneficiaries of the policy if the policy owner is obligated to repay a loan from you using the proceeds of the policy. 1040 ez file A person has a financial interest in your business if the person is an owner or part owner of the business or has lent money to the business. 1040 ez file For contracts issued after June 8, 1997, you generally cannot deduct the premiums on any life insurance policy, endowment contract, or annuity contract if you are directly or indirectly a beneficiary. 1040 ez file The disallowance applies without regard to whom the policy covers. 1040 ez file Partners. 1040 ez file If, as a partner in a partnership, you take out an insurance policy on your own life and name your partners as beneficiaries to induce them to retain their investments in the partnership, you are considered a beneficiary. 1040 ez file You cannot deduct the insurance premiums. 1040 ez file Insurance to secure a loan. 1040 ez file If you take out a policy on your life or on the life of another person with a financial interest in your business to get or protect a business loan, you cannot deduct the premiums as a business expense. 1040 ez file Nor can you deduct the premiums as interest on business loans or as an expense of financing loans. 1040 ez file In the event of death, the proceeds of the policy are generally not taxed as income even if they are used to liquidate the debt. 1040 ez file Capitalized Premiums Under the uniform capitalization rules, you must capitalize the direct costs and part of the indirect costs for certain production or resale activities. 1040 ez file Include these costs in the basis of property you produce or acquire for resale, rather than claiming them as a current deduction. 1040 ez file You recover the costs through depreciation, amortization, or cost of goods sold when you use, sell, or otherwise dispose of the property. 1040 ez file Indirect costs include premiums for insurance on your plant or facility, machinery, equipment, materials, property produced, or property acquired for resale. 1040 ez file Uniform capitalization rules. 1040 ez file   You may be subject to the uniform capitalization rules if you do any of the following, unless the property is produced for your use other than in a business or an activity carried on for profit. 1040 ez file Produce real property or tangible personal property. 1040 ez file For this purpose, tangible personal property includes a film, sound recording, video tape, book, or similar property. 1040 ez file Acquire property for resale. 1040 ez file However, these rules do not apply to the following property. 1040 ez file Personal property you acquire for resale if your average annual gross receipts are $10 million or less for the 3 prior tax years. 1040 ez file Property you produce if you meet either of the following conditions. 1040 ez file Your indirect costs of producing the property are $200,000 or less. 1040 ez file You use the cash method of accounting and do not account for inventories. 1040 ez file More information. 1040 ez file   For more information on these rules, see Uniform Capitalization Rules in Publication 538 and the regulations under Internal Revenue Code section 263A. 1040 ez file When To Deduct Premiums You can usually deduct insurance premiums in the tax year to which they apply. 1040 ez file Cash method. 1040 ez file   If you use the cash method of accounting, you generally deduct insurance premiums in the tax year you actually paid them, even if you incurred them in an earlier year. 1040 ez file However, see Prepayment , later. 1040 ez file Accrual method. 1040 ez file   If you use an accrual method of accounting, you cannot deduct insurance premiums before the tax year in which you incur a liability for them. 1040 ez file In addition, you cannot deduct insurance premiums before the tax year in which you actually pay them (unless the exception for recurring items applies). 1040 ez file For more information about the accrual method of accounting, see chapter 1. 1040 ez file For information about the exception for recurring items, see Publication 538. 1040 ez file Prepayment. 1040 ez file   You cannot deduct expenses in advance, even if you pay them in advance. 1040 ez file This rule applies to any expense paid far enough in advance to, in effect, create an asset with a useful life extending substantially beyond the end of the current tax year. 1040 ez file   Expenses such as insurance are generally allocable to a period of time. 1040 ez file You can deduct insurance expenses for the year to which they are allocable. 1040 ez file Example. 1040 ez file In 2013, you signed a 3-year insurance contract. 1040 ez file Even though you paid the premiums for 2013, 2014, and 2015 when you signed the contract, you can only deduct the premium for 2013 on your 2013 tax return. 1040 ez file You can deduct in 2014 and 2015 the premium allocable to those years. 1040 ez file Dividends received. 1040 ez file   If you receive dividends from business insurance and you deducted the premiums in prior years, at least part of the dividends generally are income. 1040 ez file For more information, see Recovery of amount deducted (tax benefit rule) in chapter 1 under How Much Can I Deduct. 1040 ez file Prev  Up  Next   Home   More Online Publications