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1040 ez free 12. 1040 ez free   Business Deduction for Work-Related Education Table of Contents What's New Introduction Qualifying Work-Related EducationEducation Required by Employer or by Law Education To Maintain or Improve Skills Education To Meet Minimum Requirements Education That Qualifies You for a New Trade or Business What Expenses Can Be DeductedUnclaimed reimbursement. 1040 ez free Transportation Expenses Travel Expenses No Double Benefit Allowed How To Treat ReimbursementsAccountable Plans Nonaccountable Plans Deducting Business ExpensesSelf-Employed Persons Employees Performing Artists and Fee-Basis Officials Impairment-Related Work Expenses Recordkeeping Illustrated Example What's New Standard mileage rate. 1040 ez free  Generally, if you claim a business deduction for work-related education and you drive your car to and from school, the amount you can deduct for miles driven from January 1, 2013 through December 31, 2013, is 56. 1040 ez free 5 cents per mile. 1040 ez free For more information, see Transportation Expenses under What Expenses Can Be Deducted, later. 1040 ez free Introduction This chapter discusses work-related education expenses that you may be able to deduct as business expenses. 1040 ez free To claim such a deduction, you must: Itemize your deductions on Schedule A (Form 1040 or 1040NR) if you are an employee, File 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 if you are self-employed, and Have expenses for education that meet the requirements discussed under Qualifying Work-Related Education , later. 1040 ez free What is the tax benefit of taking a business deduction for work-related education. 1040 ez free   If you are an employee and can itemize your deductions, you may be able to claim a deduction for the expenses you pay for your work-related education. 1040 ez free Your deduction will be the amount by which your qualifying work-related education expenses plus other job and certain miscellaneous expenses (except for impairment-related work expenses of disabled individuals) is greater than 2% of your adjusted gross income. 1040 ez free An itemized deduction reduces the amount of your income subject to tax. 1040 ez free   If you are self-employed, you deduct your expenses for qualifying work-related education directly from your self-employment income. 1040 ez free This reduces the amount of your income subject to both income tax and self-employment tax. 1040 ez free   Your work-related education expenses may also qualify you for other tax benefits, such as the American opportunity and lifetime learning credits. 1040 ez free You may qualify for these other benefits even if you do not meet the requirements listed above. 1040 ez free   Also, your work-related education expenses may qualify you to claim more than one tax benefit. 1040 ez free Generally, you may claim any number of benefits as long as you use different expenses to figure each one. 1040 ez free Qualifying Work-Related Education You can deduct the costs of qualifying work-related education as business expenses. 1040 ez free This is education that meets at least one of the following two tests. 1040 ez free The education is required by your employer or the law to keep your present salary, status, or job. 1040 ez free The required education must serve a bona fide business purpose of your employer. 1040 ez free The education maintains or improves skills needed in your present work. 1040 ez free However, even if the education meets one or both of the above tests, it is not qualifying work-related education if it: Is needed to meet the minimum educational requirements of your present trade or business, or Is part of a program of study that will qualify you for a new trade or business. 1040 ez free You can deduct the costs of qualifying work-related education as a business expense even if the education could lead to a degree. 1040 ez free Use Figure 12-1, Does Your Work-Related Education Qualify as a quick check to see if your education qualifies. 1040 ez free Education Required by Employer or by Law Once you have met the minimum educational requirements for your job, your employer or the law may require you to get more education. 1040 ez free This additional education is qualifying work-related education if all three of the following requirements are met. 1040 ez free It is required for you to keep your present salary, status, or job, The requirement serves a bona fide business purpose of your employer, and The education is not part of a program that will qualify you for a new trade or business. 1040 ez free When you get more education than your employer or the law requires, the additional education can be qualifying work-related education only if it maintains or improves skills required in your present work. 1040 ez free See Education To Maintain or Improve Skills , later. 1040 ez free Example. 1040 ez free You are a teacher who has satisfied the minimum requirements for teaching. 1040 ez free Your employer requires you to take an additional college course each year to keep your teaching job. 1040 ez free If the courses will not qualify you for a new trade or business, they are qualifying work-related education even if you eventually receive a master's degree and an increase in salary because of this extra education. 1040 ez free This image is too large to be displayed in the current screen. 1040 ez free Please click the link to view the image. 1040 ez free Figure 12-1 Education To Maintain or Improve Skills If your education is not required by your employer or the law, it can be qualifying work-related education only if it maintains or improves skills needed in your present work. 1040 ez free This could include refresher courses, courses on current developments, and academic or vocational courses. 1040 ez free Example. 1040 ez free You repair televisions, radios, and stereo systems for XYZ Store. 1040 ez free To keep up with the latest changes, you take special courses in radio and stereo service. 1040 ez free These courses maintain and improve skills required in your work. 1040 ez free Maintaining skills vs. 1040 ez free qualifying for new job. 1040 ez free   Education to maintain or improve skills needed in your present work is not qualifying education if it will also qualify you for a new trade or business. 1040 ez free Education during temporary absence. 1040 ez free   If you stop working for a year or less in order to get education to maintain or improve skills needed in your present work and then return to the same general type of work, your absence is considered temporary. 1040 ez free Education that you get during a temporary absence is qualifying work-related education if it maintains or improves skills needed in your present work. 1040 ez free Example. 1040 ez free You quit your biology research job to become a full-time biology graduate student for 1 year. 1040 ez free If you return to work in biology research after completing the courses, the education is related to your present work even if you do not go back to work with the same employer. 1040 ez free Education during indefinite absence. 1040 ez free   If you stop work for more than a year, your absence from your job is considered indefinite. 1040 ez free Education during an indefinite absence, even if it maintains or improves skills needed in the work from which you are absent, is considered to qualify you for a new trade or business. 1040 ez free Therefore, it is not qualifying work-related education. 1040 ez free Education To Meet Minimum Requirements Education you need to meet the minimum educational requirements for your present trade or business is not qualifying work-related education. 1040 ez free The minimum educational requirements are determined by: Laws and regulations, Standards of your profession, trade, or business, and Your employer. 1040 ez free Once you have met the minimum educational requirements that were in effect when you were hired, you do not have to meet any new minimum educational requirements. 1040 ez free This means that if the minimum requirements change after you were hired, any education you need to meet the new requirements can be qualifying education. 1040 ez free You have not necessarily met the minimum educational requirements of your trade or business simply because you are already doing the work. 1040 ez free Example 1. 1040 ez free You are a full-time engineering student. 1040 ez free Although you have not received your degree or certification, you work part time as an engineer for a firm that will employ you as a full-time engineer after you finish college. 1040 ez free Although your college engineering courses improve your skills in your present job, they are also needed to meet the minimum job requirements for a full-time engineer. 1040 ez free The education is not qualifying work-related education. 1040 ez free Example 2. 1040 ez free You are an accountant and you have met the minimum educational requirements of your employer. 1040 ez free Your employer later changes the minimum educational requirements and requires you to take college courses to keep your job. 1040 ez free These additional courses can be qualifying work-related education because you have already satisfied the minimum requirements that were in effect when you were hired. 1040 ez free Requirements for Teachers States or school districts usually set the minimum educational requirements for teachers. 1040 ez free The requirement is the college degree or the minimum number of college hours usually required of a person hired for that position. 1040 ez free If there are no requirements, you will have met the minimum educational requirements when you become a faculty member. 1040 ez free The determination of whether you are a faculty member of an educational institution must be made on the basis of the particular practices of the institution. 1040 ez free You generally will be considered a faculty member when one or more of the following occurs. 1040 ez free You have tenure. 1040 ez free Your years of service count toward obtaining tenure. 1040 ez free You have a vote in faculty decisions. 1040 ez free Your school makes contributions for you to a retirement plan other than social security or a similar program. 1040 ez free Example 1. 1040 ez free The law in your state requires beginning secondary school teachers to have a bachelor's degree, including 10 professional education courses. 1040 ez free In addition, to keep the job a teacher must complete a fifth year of training within 10 years from the date of hire. 1040 ez free If the employing school certifies to the state Department of Education that qualified teachers cannot be found, the school can hire persons with only 3 years of college. 1040 ez free However, to keep their jobs, these teachers must get a bachelor's degree and the required professional education courses within 3 years. 1040 ez free Under these facts, the bachelor's degree, whether or not it includes the 10 professional education courses, is considered the minimum educational requirement for qualification as a teacher in your state. 1040 ez free If you have all the required education except the fifth year, you have met the minimum educational requirements. 1040 ez free The fifth year of training is qualifying work-related education unless it is part of a program of study that will qualify you for a new trade or business. 1040 ez free Example 2. 1040 ez free Assume the same facts as in Example 1 except that you have a bachelor's degree and only six professional education courses. 1040 ez free The additional four education courses can be qualifying work-related education. 1040 ez free Although you do not have all the required courses, you have already met the minimum educational requirements. 1040 ez free Example 3. 1040 ez free Assume the same facts as in Example 1 except that you are hired with only 3 years of college. 1040 ez free The courses you take that lead to a bachelor's degree (including those in education) are not qualifying work-related education. 1040 ez free They are needed to meet the minimum educational requirements for employment as a teacher. 1040 ez free Example 4. 1040 ez free You have a bachelor's degree and you work as a temporary instructor at a university. 1040 ez free At the same time, you take graduate courses toward an advanced degree. 1040 ez free The rules of the university state that you can become a faculty member only if you get a graduate degree. 1040 ez free Also, you can keep your job as an instructor only as long as you show satisfactory progress toward getting this degree. 1040 ez free You have not met the minimum educational requirements to qualify you as a faculty member. 1040 ez free The graduate courses are not qualifying work-related education. 1040 ez free Certification in a new state. 1040 ez free   Once you have met the minimum educational requirements for teachers for your state, you are considered to have met the minimum educational requirements in all states. 1040 ez free This is true even if you must get additional education to be certified in another state. 1040 ez free Any additional education you need is qualifying work-related education. 1040 ez free You have already met the minimum requirements for teaching. 1040 ez free Teaching in another state is not a new trade or business. 1040 ez free Example. 1040 ez free You hold a permanent teaching certificate in State A and are employed as a teacher in that state for several years. 1040 ez free You move to State B and are promptly hired as a teacher. 1040 ez free You are required, however, to complete certain prescribed courses to get a permanent teaching certificate in State B. 1040 ez free These additional courses are qualifying work-related education because the teaching position in State B involves the same general kind of work for which you were qualified in State A. 1040 ez free Education That Qualifies You for a New Trade or Business Education that is part of a program of study that will qualify you for a new trade or business is not qualifying work-related education. 1040 ez free This is true even if you do not plan to enter that trade or business. 1040 ez free If you are an employee, a change of duties that involves the same general kind of work is not a new trade or business. 1040 ez free Example 1. 1040 ez free You are an accountant. 1040 ez free Your employer requires you to get a law degree at your own expense. 1040 ez free You register at a law school for the regular curriculum that leads to a law degree. 1040 ez free Even if you do not intend to become a lawyer, the education is not qualifying because the law degree will qualify you for a new trade or business. 1040 ez free Example 2. 1040 ez free You are a general practitioner of medicine. 1040 ez free You take a 2-week course to review developments in several specialized fields of medicine. 1040 ez free The course does not qualify you for a new profession. 1040 ez free It is qualifying work- related education because it maintains or improves skills required in your present profession. 1040 ez free Example 3. 1040 ez free While working in the private practice of psychiatry, you enter a program to study and train at an accredited psychoanalytic institute. 1040 ez free The program will lead to qualifying you to practice psychoanalysis. 1040 ez free The psychoanalytic training does not qualify you for a new profession. 1040 ez free It is qualifying work-related education because it maintains or improves skills required in your present profession. 1040 ez free Bar or CPA Review Course Review courses to prepare for the bar examination or the certified public accountant (CPA) examination are not qualifying work-related education. 1040 ez free They are part of a program of study that can qualify you for a new profession. 1040 ez free Teaching and Related Duties All teaching and related duties are considered the same general kind of work. 1040 ez free A change in duties in any of the following ways is not considered a change to a new business. 1040 ez free Elementary school teacher to secondary school teacher. 1040 ez free Teacher of one subject, such as biology, to teacher of another subject, such as art. 1040 ez free Classroom teacher to guidance counselor. 1040 ez free Classroom teacher to school administrator. 1040 ez free What Expenses Can Be Deducted If your education meets the requirements described earlier under Qualifying Work-Related Education you can generally deduct your education expenses as business expenses. 1040 ez free If you are not self-employed, you can deduct business expenses only if you itemize your deductions. 1040 ez free You cannot deduct expenses related to tax-exempt and excluded income. 1040 ez free Deductible expenses. 1040 ez free   The following education expenses can be deducted. 1040 ez free Tuition, books, supplies, lab fees, and similar items. 1040 ez free Certain transportation and travel costs. 1040 ez free Other education expenses, such as costs of research and typing when writing a paper as part of an educational program. 1040 ez free Nondeductible expenses. 1040 ez free   You cannot deduct personal or capital expenses. 1040 ez free For example, you cannot deduct the dollar value of vacation time or annual leave you take to attend classes. 1040 ez free This amount is a personal expense. 1040 ez free Unclaimed reimbursement. 1040 ez free   If you do not claim reimbursement that you are entitled to receive from your employer, you cannot deduct the expenses that apply to that unclaimed reimbursement. 1040 ez free Example. 1040 ez free Your employer agrees to pay your education expenses if you file a voucher showing your expenses. 1040 ez free You do not file a voucher and you do not get reimbursed. 1040 ez free Because you did not file a voucher, you cannot deduct the expenses on your tax return. 1040 ez free Transportation Expenses If your education qualifies, you can deduct local transportation costs of going directly from work to school. 1040 ez free If you are regularly employed and go to school on a temporary basis, you can also deduct the costs of returning from school to home. 1040 ez free Temporary basis. 1040 ez free   You go to school on a temporary basis if either of the following situations applies to you. 1040 ez free Your attendance at school is realistically expected to last 1 year or less and does indeed last for 1 year or less. 1040 ez free Initially, your attendance at school is realistically expected to last 1 year or less, but at a later date your attendance is reasonably expected to last more than 1 year. 1040 ez free Your attendance is temporary up to the date you determine it will last more than 1 year. 1040 ez free If you are in either situation (1) or (2) above, your attendance is not temporary if facts and circumstances indicate otherwise. 1040 ez free Attendance not on a temporary basis. 1040 ez free   You do not go to school on a temporary basis if either of the following situations apply to you. 1040 ez free Your attendance at school is realistically expected to last more than 1 year. 1040 ez free It does not matter how long you actually attend. 1040 ez free Initially, your attendance at school is realistically expected to last 1 year or less, but at a later date your attendance is reasonably expected to last more than 1 year. 1040 ez free Your attendance is not temporary after the date you determine it will last more than 1 year. 1040 ez free Deductible Transportation Expenses If you are regularly employed and go directly from home to school on a temporary basis, you can deduct the round-trip costs of transportation between your home and school. 1040 ez free This is true regardless of the location of the school, the distance traveled, or whether you attend school on nonwork days. 1040 ez free Transportation expenses include the actual costs of bus, subway, cab, or other fares, as well as the costs of using your car. 1040 ez free Transportation expenses do not include amounts spent for travel, meals, or lodging while you are away from home overnight. 1040 ez free Example 1. 1040 ez free You regularly work in a nearby town, and go directly from work to home. 1040 ez free You also attend school every work night for 3 months to take a course that improves your job skills. 1040 ez free Since you are attending school on a temporary basis, you can deduct your daily round-trip transportation expenses in going between home and school. 1040 ez free This is true regardless of the distance traveled. 1040 ez free Example 2. 1040 ez free Assume the same facts as in Example 1 except that on certain nights you go directly from work to school and then home. 1040 ez free You can deduct your transportation expenses from your regular work site to school and then home. 1040 ez free Example 3. 1040 ez free Assume the same facts as in Example 1 except that you attend the school for 9 months on Saturdays, nonwork days. 1040 ez free Since you are attending school on a temporary basis, you can deduct your round-trip transportation expenses in going between home and school. 1040 ez free Example 4. 1040 ez free Assume the same facts as in Example 1 except that you attend classes twice a week for 15 months. 1040 ez free Since your attendance in school is not considered temporary, you cannot deduct your transportation expenses in going between home and school. 1040 ez free If you go directly from work to school, you can deduct the one-way transportation expenses of going from work to school. 1040 ez free If you go from work to home to school and return home, your transportation expenses cannot be more than if you had gone directly from work to school. 1040 ez free Using your car. 1040 ez free    If you use your car (whether you own or lease it) for transportation to school, you can deduct your actual expenses or use the standard mileage rate to figure the amount you can deduct. 1040 ez free The standard mileage rate for miles driven from January 1, 2013 through December 31, 2013, is 56. 1040 ez free 5 cents per mile. 1040 ez free Whichever method you use, you can also deduct parking fees and tolls. 1040 ez free See Publication 463, chapter 4, for information on deducting your actual expenses of using a car. 1040 ez free Travel Expenses You can deduct expenses for travel, meals (see 50% limit on meals , later), and lodging if you travel overnight mainly to obtain qualifying work-related education. 1040 ez free Travel expenses for qualifying work-related education are treated the same as travel expenses for other employee business purposes. 1040 ez free For more information, see chapter 1 of Publication 463. 1040 ez free You cannot deduct expenses for personal activities such as sightseeing, visiting, or entertaining. 1040 ez free Mainly personal travel. 1040 ez free   If your travel away from home is mainly personal, you cannot deduct all of your expenses for travel, meals, and lodging. 1040 ez free You can deduct only your expenses for lodging and 50% of your expenses for meals during the time you attend the qualified educational activities. 1040 ez free   Whether a trip's purpose is mainly personal or educational depends upon the facts and circumstances. 1040 ez free An important factor is the comparison of time spent on personal activities with time spent on educational activities. 1040 ez free If you spend more time on personal activities, the trip is considered mainly educational only if you can show a substantial nonpersonal reason for traveling to a particular location. 1040 ez free Example 1. 1040 ez free John works in Newark, New Jersey. 1040 ez free He traveled to Chicago to take a deductible 1-week course at the request of his employer. 1040 ez free His main reason for going to Chicago was to take the course. 1040 ez free While there, he took a sightseeing trip, entertained some friends, and took a side trip to Pleasantville for a day. 1040 ez free Since the trip was mainly for business, John can deduct his round-trip airfare to Chicago. 1040 ez free He cannot deduct his transportation expenses of going to Pleasantville. 1040 ez free He can deduct only the meals (subject to the 50% limit) and lodging connected with his educational activities. 1040 ez free Example 2. 1040 ez free Sue works in Boston. 1040 ez free She went to a university in Michigan to take a course for work. 1040 ez free The course is qualifying work-related education. 1040 ez free She took one course, which is one-fourth of a full course load of study. 1040 ez free She spent the rest of the time on personal activities. 1040 ez free Her reasons for taking the course in Michigan were all personal. 1040 ez free Sue's trip is mainly personal because three-fourths of her time is considered personal time. 1040 ez free She cannot deduct the cost of her round-trip train ticket to Michigan. 1040 ez free She can deduct one-fourth of the meals (subject to the 50% limit) and lodging costs for the time she attended the university. 1040 ez free Example 3. 1040 ez free Dave works in Nashville and recently traveled to California to take a 2-week seminar. 1040 ez free The seminar is qualifying work-related education. 1040 ez free While there, he spent an extra 8 weeks on personal activities. 1040 ez free The facts, including the extra 8-week stay, show that his main purpose was to take a vacation. 1040 ez free Dave cannot deduct his round-trip airfare or his meals and lodging for the 8 weeks. 1040 ez free He can deduct only his expenses for meals (subject to the 50% limit) and lodging for the 2 weeks he attended the seminar. 1040 ez free Cruises and conventions. 1040 ez free   Certain cruises and conventions offer seminars or courses as part of their itinerary. 1040 ez free Even if the seminars or courses are work related, your deduction for travel may be limited. 1040 ez free This applies to: Travel by ocean liner, cruise ship, or other form of luxury water transportation, and Conventions outside the North American area. 1040 ez free   For a discussion of the limits on travel expense deductions that apply to cruises and conventions, see Luxury Water Travel and Conventions in chapter 1 of Publication 463. 1040 ez free 50% limit on meals. 1040 ez free   You can deduct only 50% of the cost of your meals while traveling away from home to obtain qualifying work-related education. 1040 ez free If you were reimbursed for the meals, see How To Treat Reimbursements , later. 1040 ez free   Employees must use Form 2106 or Form 2106-EZ to apply the 50% limit. 1040 ez free Travel as Education You cannot deduct the cost of travel as a form of education even if it is directly related to your duties in your work or business. 1040 ez free Example. 1040 ez free You are a French language teacher. 1040 ez free While on sabbatical leave granted for travel, you traveled through France to improve your knowledge of the French language. 1040 ez free You chose your itinerary and most of your activities to improve your French language skills. 1040 ez free You cannot deduct your travel expenses as education expenses. 1040 ez free This is true even if you spent most of your time learning French by visiting French schools and families, attending movies or plays, and engaging in similar activities. 1040 ez free No Double Benefit Allowed You cannot do either of the following. 1040 ez free Deduct work-related education expenses as business expenses if you benefit from these expenses under any other provision of the law, for example, as a tuition and fees deduction. 1040 ez free Deduct work-related education expenses paid with tax-free scholarship, grant, or employer-provided educational assistance. 1040 ez free See Adjustments to Qualifying Work-Related Education Expenses, next. 1040 ez free Adjustments to Qualifying Work-Related Education Expenses If you pay qualifying work-related education expenses with certain tax-free funds, you cannot claim a deduction for those amounts. 1040 ez free You must reduce the qualifying expenses by the amount of such expenses allocable to the tax-free educational assistance. 1040 ez free Tax-free educational assistance. 1040 ez free   This includes: The tax-free part of scholarships and fellowships (see Tax-Free Scholarships and Fellowships in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), Pell grants (see Pell Grants and Other Title IV Need-Based Education Grants in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions). 1040 ez free Employer-provided educational assistance (see chapter 11, Employer-Provided Educational Assistance ), Veterans' educational assistance (see Veterans' Benefits in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), and Any other nontaxable (tax-free) payments (other than gifts or inheritances) received as educational assistance. 1040 ez free Amounts that do not reduce qualifying work-related education expenses. 1040 ez free   Do not reduce the qualifying work-related education expenses by amounts paid with funds the student receives as: Payment for services, such as wages, A loan, A gift, An inheritance, or A withdrawal from the student's personal savings. 1040 ez free Also, do not reduce the qualifying work-related education expenses by any scholarship or fellowship reported as income on the student's return or any scholarship which, by its terms, cannot be applied to qualifying work-related education expenses. 1040 ez free How To Treat Reimbursements How you treat reimbursements depends on the arrangement you have with your employer. 1040 ez free There are two basic types of reimbursement arrangements—accountable plans and nonaccountable plans. 1040 ez free You can tell the type of plan you are reimbursed under by the way the reimbursement is reported on your Form W-2. 1040 ez free Note. 1040 ez free The following rules about reimbursement arrangements also apply to expense allowances received from your employer. 1040 ez free Accountable Plans To be an accountable plan, your employer's reimbursement arrangement must require you to meet all three of the following rules. 1040 ez free Your expenses must have a business connection. 1040 ez free This means your expenses must be deductible under the rules for qualifying work-related education explained earlier. 1040 ez free You must adequately account to your employer for your expenses within a reasonable period of time. 1040 ez free You must return any reimbursement or allowance in excess of the expenses accounted for within a reasonable period of time. 1040 ez free If you are reimbursed under an accountable plan, your employer should not include any reimbursement in your income in box 1 of your Form W-2. 1040 ez free If your employer included reimbursements in box 1 of your Form W-2 and you meet all three rules for accountable plans, ask your employer for a corrected Form W-2. 1040 ez free Accountable plan rules not met. 1040 ez free   Even though you are reimbursed under an accountable plan, some of your expenses may not meet all three rules for accountable plans. 1040 ez free Those expenses that fail to meet the three rules are treated as having been reimbursed under a Nonaccountable Plan (discussed later). 1040 ez free Expenses equal reimbursement. 1040 ez free   Under an accountable plan, if your expenses equal your reimbursement, you do not complete Form 2106 or 2106-EZ. 1040 ez free Because your expenses and reimbursements are equal, you do not have a deduction. 1040 ez free Excess expenses. 1040 ez free   If your expenses are more than your reimbursement, you can deduct your excess expenses. 1040 ez free This is discussed later, under Deducting Business Expenses . 1040 ez free Allocating your reimbursements for meals. 1040 ez free   Because your excess meal expenses are subject to the 50% limit, you must figure them separately from your other expenses. 1040 ez free If your employer paid you a single amount to cover both meals and other expenses, you must allocate the reimbursement so that you can figure your excess meal expenses separately. 1040 ez free Make the allocation as follows. 1040 ez free Divide your meal expenses by your total expenses. 1040 ez free Multiply your total reimbursement by the result from (1). 1040 ez free This is the allocated reimbursement for your meal expenses. 1040 ez free Subtract the amount figured in (2) from your total reimbursement. 1040 ez free The difference is the allocated reimbursement for your other expenses of qualifying work-related education. 1040 ez free Example. 1040 ez free Your employer paid you an expense allowance of $2,000 under an accountable plan. 1040 ez free The allowance was to cover all of your expenses of traveling away from home to take a 2-week training course for work. 1040 ez free There was no indication of how much of the reimbursement was for each type of expense. 1040 ez free Your actual expenses equal $2,500 ($425 for meals + $700 lodging + $150 transportation expenses + $1,225 for books and tuition). 1040 ez free Using the steps listed above, allocate the reimbursement between the $425 meal expenses and the $2,075 other expenses. 1040 ez free   1. 1040 ez free $425 meal expenses  $2,500 total expenses = . 1040 ez free 17   2. 1040 ez free $2,000 (reimbursement)×. 1040 ez free 17     =$340 (allocated reimbursement for meal expenses)   3. 1040 ez free $2,000 (reimbursement)−$340 (meals)     = $1,660 (allocated reimbursement for other qualifying work-related education expenses) Your excess meal expenses are $85 ($425 − $340) and your excess other expenses are $415 ($2,075 − $1,660). 1040 ez free After you apply the 50% limit to your meals, you have a deduction for work-related education expenses of $458 (($85 × 50%) + $415). 1040 ez free Nonaccountable Plans Your employer will combine the amount of any reimbursement or other expense allowance paid to you under a nonaccountable plan with your wages, salary, or other pay and report the total in box 1 of your Form W-2. 1040 ez free You can deduct your expenses regardless of whether they are more than, less than, or equal to your reimbursement. 1040 ez free This is discussed later under Deducting Business Expenses . 1040 ez free An illustrated example of a nonaccountable plan, using Form 2106-EZ, is shown at the end of this chapter. 1040 ez free Reimbursements for nondeductible expenses. 1040 ez free   Reimbursements you received for nondeductible expenses are treated as paid under a nonaccountable plan. 1040 ez free You must include them in your income. 1040 ez free For example, you must include in your income reimbursements your employer gave you for expenses of education that: You need to meet the minimum educational requirements for your job, or Is part of a program of study that can qualify you for a new trade or business. 1040 ez free   For more information on accountable and nonaccountable plans, see chapter 6 of Publication 463. 1040 ez free Deducting Business Expenses Self-employed persons and employees report their business expenses differently. 1040 ez free The following information explains what forms you must use to deduct the cost of your qualifying work-related education as a business expense. 1040 ez free Self-Employed Persons If you are self-employed, you must report the cost of your qualifying work-related education on the appropriate form used to report your business income and expenses (generally Schedule C (Form 1040), Schedule C-EZ (Form 1040), or Schedule F (Form 1040)). 1040 ez free If your education expenses include expenses for a car or truck, travel, or meals, report those expenses the same way you report other business expenses for those items. 1040 ez free See the instructions for the form you file for information on how to complete it. 1040 ez free Employees If you are an employee, you can deduct the cost of qualifying work-related education only if you: Did not receive (and were not entitled to receive) any reimbursement from your employer, Were reimbursed under a nonaccountable plan (amount is included in box 1 of Form W-2), or Received reimbursement under an accountable plan, but the amount received was less than your expenses for which you claimed reimbursement. 1040 ez free If either (1) or (2) applies, you can deduct the total qualifying cost. 1040 ez free If (3) applies, you can deduct only the qualifying costs that were more than your reimbursement. 1040 ez free In order to deduct the cost of your qualifying work-related education as a business expense, include the amount with your deduction for any other employee business expenses on Schedule A (Form 1040), line 21, or Schedule A (Form 1040NR), line 7. 1040 ez free (Special rules for expenses of certain performing artists and fee-basis officials and for impairment-related work expenses are explained later. 1040 ez free ) This deduction (except for impairment-related work expenses of disabled individuals) is subject to the 2%-of-adjusted-gross-income limit that applies to most miscellaneous itemized deductions. 1040 ez free Form 2106 or 2106-EZ. 1040 ez free   To figure your deduction for employee business expenses, including qualifying work-related education, you generally must complete Form 2106 or 2106-EZ. 1040 ez free Form not required. 1040 ez free   Do not complete either Form 2106 or 2106-EZ if: All reimbursements, if any, are included in box 1 of your Form W-2, and You are not claiming travel, transportation, meal, or entertainment expenses. 1040 ez free   If you meet both of these requirements, enter the expenses directly on Schedule A (Form 1040), line 21, or Schedule A (Form 1040NR), line 7. 1040 ez free (Special rules for expenses of certain Performing Artists and Fee-Basis Officials and for Impairment-Related Work Expenses are explained later. 1040 ez free ) Using Form 2106-EZ. 1040 ez free   This form is shorter and easier to use than Form 2106. 1040 ez free Generally, you can use this form if: All reimbursements, if any, are included in box 1 of your Form W-2, and You are using the standard mileage rate if you are claiming vehicle expenses. 1040 ez free   If you do not meet both of these requirements, use Form 2106. 1040 ez free Performing Artists and Fee-Basis Officials If you are a qualified performing artist, or a state (or local) government official who is paid in whole or in part on a fee basis, you can deduct the cost of your qualifying work-related education as an adjustment to gross income rather than as an itemized deduction. 1040 ez free Include the cost of your qualifying work-related education with any other employee business expenses on Form 1040, line 24, or Form 1040NR, line 35. 1040 ez free You do not have to itemize your deductions on Schedule A (Form 1040 or 1040NR), and, therefore, the deduction is not subject to the 2%-of-adjusted-gross-income limit. 1040 ez free You must complete Form 2106 or 2106-EZ to figure your deduction even if you meet the requirements described earlier under Form not required . 1040 ez free For more information on qualified performing artists, see chapter 6 of Publication 463. 1040 ez free Impairment-Related Work Expenses If you are disabled and have impairment-related work expenses that are necessary for you to be able to get qualifying work-related education, you can deduct these expenses on Schedule A (Form 1040), line 28, or Schedule A (Form 1040NR), line 14. 1040 ez free They are not subject to the 2%-of-adjusted-gross-income limit. 1040 ez free To deduct these expenses, you must complete Form 2106 or 2106-EZ even if you meet the requirements described earlier under Form not required . 1040 ez free For more information on impairment-related work expenses, see chapter 6 of Publication 463. 1040 ez free Recordkeeping You must keep records as proof of any deduction claimed on your tax return. 1040 ez free Generally, you should keep your records for 3 years from the date of filing the tax return and claiming the deduction. 1040 ez free If you are an employee who is reimbursed for expenses and you give your records and documentation to your employer, you do not have to keep duplicate copies of this information. 1040 ez free However, you should keep your records for a 3-year period if: You claim deductions for expenses that are more than your reimbursement, Your employer does not use adequate accounting procedures to verify expense accounts, You are related to your employer, or Your expenses are reimbursed under a nonaccountable plan. 1040 ez free Examples of records to keep. 1040 ez free   If any of the above cases apply to you, you must be able to prove that your expenses are deductible. 1040 ez free You should keep adequate records or have sufficient evidence that will support your expenses. 1040 ez free Estimates or approximations do not qualify as proof of an expense. 1040 ez free Some examples of what can be used to help prove your expenses are: Documents, such as transcripts, course descriptions, catalogs, etc. 1040 ez free , showing periods of enrollment in educational institutions, principal subjects studied, and descriptions of educational activity. 1040 ez free Canceled checks and receipts to verify amounts you spent for: Tuition and books, Meals and lodging while away from home overnight for educational purposes, Travel and transportation, and Other education expenses. 1040 ez free Statements from your employer explaining whether the education was necessary for you to keep your job, salary, or status; how the education helped maintain or improve skills needed in your job; how much reimbursement you received; and, if you are a teacher, the type of certificate and subjects taught. 1040 ez free Complete information about any scholarship or fellowship grants, including amounts you received during the year. 1040 ez free Illustrated Example Victor Jones teaches math at a private high school in North Carolina. 1040 ez free He was selected to attend a 3-week math seminar at a university in California. 1040 ez free The seminar will improve his skills in his current job and is qualifying work-related education. 1040 ez free He was reimbursed for his expenses under his employer's nonaccountable plan, so his reimbursement of $2,100 is included in the wages shown in box 1 of his Form W-2. 1040 ez free Victor will file Form 1040. 1040 ez free His actual expenses for the seminar are as follows:   Lodging   $1,050     Meals   526     Airfare   550     Taxi fares   50     Tuition and books   400     Total Expenses   $2,576   Victor files Form 2106-EZ with his tax return. 1040 ez free He shows his expenses for the seminar in Part I of the form. 1040 ez free He enters $1,650 ($1,050 + $550 + $50) on line 3 to account for his lodging, airfare, and taxi fares. 1040 ez free He enters $400 on line 4 for his tuition and books. 1040 ez free On the line provided for total meals and entertainment expenses, Victor enters $526 for meal expenses. 1040 ez free He multiplies that amount by 50% and enters the result, $263, on line 5. 1040 ez free On line 6, Victor totals the amounts from lines 3 through 5. 1040 ez free He carries the total, $2,313, to Schedule A (Form 1040), line 21. 1040 ez free Since he does not claim any vehicle expenses, Victor leaves Part II blank. 1040 ez free His filled-in form is shown on the next page. 1040 ez free This image is too large to be displayed in the current screen. 1040 ez free Please click the link to view the image. 1040 ez free Form 2106-EZ for V. 1040 ez free Jones Prev  Up  Next   Home   More Online Publications
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Internal Revenue Manual (IRM) Materials Relating to Tax Exempt Bonds

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IRM 4.81.1 TEB Program
This manual section outlines the Tax Exempt Bonds (TEB) program responsibilities in the oversight, compliance and education related to arrangements that involve debt instruments or obligations of States, their political subdivisions and other entities entitled to issue tax-exempt and tax credit obligations.

IRM 4.81.2 Examination Selection
This manual section provides procedures for the TEB classification program through which examinations pertaining to tax-exempt bond transactions are selected in accordance with inventory requirements.

IRM 4.81.5 Examination Process (Sections 1 - 7.6) (Sections 7.7 - 9.6)
This manual section provides the basic techniques that are intended to ensure that a uniform approach is taken when conducting TEB examinations. The following guidance on general examination techniques and procedures used to conduct examinations of tax-exempt bonds and tax credit bonds is provided for TEB examiners. The procedures outlined within this manual are designed to be used as a guide for TEB examiners when examining a Form 8038 series information return and are not intended to be all inclusive.

IRM 4.81.6 Closing Agreements
This manual section sets forth procedures under which the IRS will enter into closing agreements with governmental issuers and other parties to tax-exempt bond transactions with respect to the application of federal tax law requirements under the Code and corresponding Income Tax regulations (the " Regulations" or "ITR" ) in order to correct any compliance failures and preserve the tax-exempt status of the bonds. These procedures seek to ensure consistency of treatment and to encourage increased voluntary compliance throughout the municipal bond industry.

IRM 4.81.7 Bondholder Referrals
This manual section provides guidance for TEB examiners to refer bondholders in the event of an adverse bond examination.

IRM 4.81.10 Quality Review
This manual section provides guidance and procedures for the systematic review of cases for the purpose of measuring quality and to identify examination deficiency trends.

IRM 4.81.11 Referral Program
This manual provides procedures for the TEB Referral Program for Tax Exempt Bonds. It provides guidance for handling information items and referrals received or developed by TEB that relate specifically to compliance issues.

IRM 4.82.1 Examining Qualified Small Issue Bonds
This manual section provides procedures for examining qualified small issue bonds under section 144(a) of the Internal Revenue Code

IRM 7.2.3 Tax Exempt Bonds Voluntary Closing Agreement Program
This manual section provides procedures for the voluntary closing agreement program for tax-exempt bonds and tax credit bonds known as TEB VCAP.

IRM 22.42.1 Tax Exempt Bonds Customer Education and Outreach
This manual section provides procedures for the Tax Exempt Bonds Customer Education & Outreach ("TEB CE&O" ) program.

Page Last Reviewed or Updated: 26-Mar-2014

The 1040 Ez Free

1040 ez free Publication 502 - Main Content Table of Contents What Are Medical Expenses? What Expenses Can You Include This Year?Community property states. 1040 ez free How Much of the Expenses Can You Deduct? Whose Medical Expenses Can You Include?Spouse Dependent Decedent What Medical Expenses Are Includible?Abortion Acupuncture Alcoholism Ambulance Annual Physical Examination Artificial Limb Artificial Teeth Bandages Birth Control Pills Body Scan Braille Books and Magazines Breast Pumps and Supplies Breast Reconstruction Surgery Capital Expenses Car Chiropractor Christian Science Practitioner Contact Lenses Crutches Dental Treatment Diagnostic Devices Disabled Dependent Care Expenses Drug Addiction Drugs Eye Exam Eyeglasses Eye Surgery Fertility Enhancement Founder's Fee Guide Dog or Other Service Animal Health Institute Health Maintenance Organization (HMO) Hearing Aids Home Care Home Improvements Hospital Services Insurance Premiums Intellectually and Developmentally Disabled, Special Home for Laboratory Fees Lactation Expenses Lead-Based Paint Removal Learning Disability Legal Fees Lifetime Care—Advance Payments Lodging Long-Term Care Meals Medical Conferences Medical Information Plan Medicines Nursing Home Nursing Services Operations Optometrist Organ Donors Osteopath Oxygen Physical Examination Pregnancy Test Kit Prosthesis Psychiatric Care Psychoanalysis Psychologist Special Education Sterilization Stop-Smoking Programs Surgery Telephone Television Therapy Transplants Transportation Trips Tuition Vasectomy Vision Correction Surgery Weight-Loss Program Wheelchair Wig X-ray What Expenses Are Not Includible?Baby Sitting, Childcare, and Nursing Services for a Normal, Healthy Baby Controlled Substances Cosmetic Surgery Dancing Lessons Diaper Service Electrolysis or Hair Removal Flexible Spending Account Funeral Expenses Future Medical Care Hair Transplant Health Club Dues Health Coverage Tax Credit Health Savings Accounts Household Help Illegal Operations and Treatments Insurance Premiums Maternity Clothes Medical Savings Account (MSA) Medicines and Drugs From Other Countries Nonprescription Drugs and Medicines Nutritional Supplements Personal Use Items Swimming Lessons Teeth Whitening Veterinary Fees Weight-Loss Program How Do You Treat Reimbursements?Insurance Reimbursement How Do You Figure and Report the Deduction on Your Tax Return?What Tax Form Do You Use? Sale of Medical Equipment or Property Damages for Personal Injuries Impairment-Related Work Expenses Health Insurance Costs for Self-Employed Persons COBRA Premium Assistance Health Coverage Tax CreditWho Can Take This Credit? Qualifying Family Member Qualified Health Insurance Nonqualified Health Insurance Eligible Coverage Month How To Take the Credit How To Get Tax HelpLow Income Taxpayer Clinics What Are Medical Expenses? Medical expenses are the costs of diagnosis, cure, mitigation, treatment, or prevention of disease, and the costs for treatments affecting any part or function of the body. 1040 ez free These expenses include payments for legal medical services rendered by physicians, surgeons, dentists, and other medical practitioners. 1040 ez free They include the costs of equipment, supplies, and diagnostic devices needed for these purposes. 1040 ez free Medical care expenses must be primarily to alleviate or prevent a physical or mental defect or illness. 1040 ez free They do not include expenses that are merely beneficial to general health, such as vitamins or a vacation. 1040 ez free Medical expenses include the premiums you pay for insurance that covers the expenses of medical care, and the amounts you pay for transportation to get medical care. 1040 ez free Medical expenses also include amounts paid for qualified long-term care services and limited amounts paid for any qualified long-term care insurance contract. 1040 ez free What Expenses Can You Include This Year? You can include only the medical and dental expenses you paid this year, regardless of when the services were provided. 1040 ez free (But see Decedent under Whose Medical Expenses Can You Include, for an exception. 1040 ez free ) If you pay medical expenses by check, the day you mail or deliver the check generally is the date of payment. 1040 ez free If you use a “pay-by-phone” or “online” account to pay your medical expenses, the date reported on the statement of the financial institution showing when payment was made is the date of payment. 1040 ez free If you use a credit card, include medical expenses you charge to your credit card in the year the charge is made, not when you actually pay the amount charged. 1040 ez free If you did not claim a medical or dental expense that would have been deductible in an earlier year, you can file Form 1040X, Amended U. 1040 ez free S. 1040 ez free Individual Income Tax Return, for the year in which you overlooked the expense. 1040 ez free Do not claim the expense on this year's return. 1040 ez free Generally, an amended return must be filed within 3 years from the date the original return was filed or within 2 years from the time the tax was paid, whichever is later. 1040 ez free You cannot include medical expenses that were paid by insurance companies or other sources. 1040 ez free This is true whether the payments were made directly to you, to the patient, or to the provider of the medical services. 1040 ez free Separate returns. 1040 ez free   If you and your spouse live in a noncommunity property state and file separate returns, each of you can include only the medical expenses each actually paid. 1040 ez free Any medical expenses paid out of a joint checking account in which you and your spouse have the same interest are considered to have been paid equally by each of you, unless you can show otherwise. 1040 ez free Community property states. 1040 ez free   If you and your spouse live in a community property state and file separate returns or are registered domestic partners in Nevada, Washington, or California, any medical expenses paid out of community funds are divided equally. 1040 ez free Generally, each of you should include half the expenses. 1040 ez free If medical expenses are paid out of the separate funds of one individual, only the individual who paid the medical expenses can include them. 1040 ez free If you live in a community property state and are not filing a joint return, see Publication 555, Community Property. 1040 ez free How Much of the Expenses Can You Deduct? Generally, you can deduct on Schedule A (Form 1040) only the amount of your medical and dental expenses that is more than 10% of your AGI. 1040 ez free But if either you or your spouse was born before January 2, 1949, you can deduct the amount of your medical and dental expenses that is more than 7. 1040 ez free 5% of your AGI. 1040 ez free Example. 1040 ez free You are unmarried and were born after January 2, 1949, and your AGI is $40,000, 10% of which is $4,000. 1040 ez free You paid medical expenses of $2,500. 1040 ez free You cannot deduct any of your medical expenses because they are not more than 10% of your AGI. 1040 ez free Whose Medical Expenses Can You Include? You can generally include medical expenses you pay for yourself, as well as those you pay for someone who was your spouse or your dependent either when the services were provided or when you paid for them. 1040 ez free There are different rules for decedents and for individuals who are the subject of multiple support agreements. 1040 ez free See Support claimed under a multiple support agreement , later under Qualifying Relative. 1040 ez free Spouse You can include medical expenses you paid for your spouse. 1040 ez free To include these expenses, you must have been married either at the time your spouse received the medical services or at the time you paid the medical expenses. 1040 ez free Example 1. 1040 ez free Mary received medical treatment before she married Bill. 1040 ez free Bill paid for the treatment after they married. 1040 ez free Bill can include these expenses in figuring his medical expense deduction even if Bill and Mary file separate returns. 1040 ez free If Mary had paid the expenses, Bill could not include Mary's expenses in his separate return. 1040 ez free Mary would include the amounts she paid during the year in her separate return. 1040 ez free If they filed a joint return, the medical expenses both paid during the year would be used to figure their medical expense deduction. 1040 ez free Example 2. 1040 ez free This year, John paid medical expenses for his wife Louise, who died last year. 1040 ez free John married Belle this year and they file a joint return. 1040 ez free Because John was married to Louise when she received the medical services, he can include those expenses in figuring his medical expense deduction for this year. 1040 ez free Dependent You can include medical expenses you paid for your dependent. 1040 ez free For you to include these expenses, the person must have been your dependent either at the time the medical services were provided or at the time you paid the expenses. 1040 ez free A person generally qualifies as your dependent for purposes of the medical expense deduction if both of the following requirements are met. 1040 ez free The person was a qualifying child (defined later) or a qualifying relative (defined later), and The person was a U. 1040 ez free S. 1040 ez free citizen or national or a resident of the United States, Canada, or Mexico. 1040 ez free If your qualifying child was adopted, see Exception for adopted child , later. 1040 ez free You can include medical expenses you paid for an individual that would have been your dependent except that: He or she received gross income of $3,900 or more in 2013, He or she filed a joint return for 2013, or You, or your spouse if filing jointly, could be claimed as a dependent on someone else's 2013 return. 1040 ez free Exception for adopted child. 1040 ez free   If you are a U. 1040 ez free S. 1040 ez free citizen or national and your adopted child lived with you as a member of your household for 2013, that child does not have to be a U. 1040 ez free S. 1040 ez free citizen or national, or a resident of the United States, Canada, or Mexico. 1040 ez free Qualifying Child A qualifying child is a child who: Is your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, half brother, half sister, or a descendant of any of them (for example, your grandchild, niece, or nephew), Was: Under age 19 at the end of 2013 and younger than you (or your spouse, if filing jointly), Under age 24 at the end of 2013, a full-time student, and younger than you (or your spouse, if filing jointly), or Any age and permanently and totally disabled, Lived with you for more than half of 2013, Did not provide over half of his or her own support for 2013, and Did not file a joint return, other than to claim a refund. 1040 ez free Adopted child. 1040 ez free   A legally adopted child is treated as your own child. 1040 ez free This child includes a child lawfully placed with you for legal adoption. 1040 ez free   You can include medical expenses that you paid for a child before adoption if the child qualified as your dependent when the medical services were provided or when the expenses were paid. 1040 ez free   If you pay back an adoption agency or other persons for medical expenses they paid under an agreement with you, you are treated as having paid those expenses provided you clearly substantiate that the payment is directly attributable to the medical care of the child. 1040 ez free   But if you pay the agency or other person for medical care that was provided and paid for before adoption negotiations began, you cannot include them as medical expenses. 1040 ez free    You may be able to take a credit for other expenses related to an adoption. 1040 ez free See the Instructions for Form 8839, Qualified Adoption Expenses, for more information. 1040 ez free Child of divorced or separated parents. 1040 ez free   For purposes of the medical and dental expenses deduction, a child of divorced or separated parents can be treated as a dependent of both parents. 1040 ez free Each parent can include the medical expenses he or she pays for the child, even if the other parent claims the child's dependency exemption, if: The child is in the custody of one or both parents for more than half the year, The child receives over half of his or her support during the year from his or her parents, and The child's parents: Are divorced or legally separated under a decree of divorce or separate maintenance, Are separated under a written separation agreement, or Live apart at all times during the last 6 months of the year. 1040 ez free This does not apply if the child's exemption is being claimed under a multiple support agreement (discussed later). 1040 ez free Qualifying Relative A qualifying relative is a person: Who is your: Son, daughter, stepchild, or foster child, or a descendant of any of them (for example, your grandchild), Brother, sister, half brother, half sister, or a son or daughter of any of them, Father, mother, or an ancestor or sibling of either of them (for example, your grandmother, grandfather, aunt, or uncle), Stepbrother, stepsister, stepfather, stepmother, son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law, or Any other person (other than your spouse) who lived with you all year as a member of your household if your relationship did not violate local law, Who was not a qualifying child (see Qualifying Child, earlier) of any taxpayer for 2013, and For whom you provided over half of the support in 2013. 1040 ez free But see Child of divorced or separated parents , earlier, Support claimed under a multiple support agreement, next, and Kidnapped child under Qualifying Relative in Publication 501. 1040 ez free Support claimed under a multiple support agreement. 1040 ez free   If you are considered to have provided more than half of a qualifying relative's support under a multiple support agreement, you can include medical expenses you pay for that person. 1040 ez free A multiple support agreement is used when two or more people provide more than half of a person's support, but no one alone provides more than half. 1040 ez free   Any medical expenses paid by others who joined you in the agreement cannot be included as medical expenses by anyone. 1040 ez free However, you can include the entire unreimbursed amount you paid for medical expenses. 1040 ez free Example. 1040 ez free You and your three brothers each provide one-fourth of your mother's total support. 1040 ez free Under a multiple support agreement, you treat your mother as your dependent. 1040 ez free You paid all of her medical expenses. 1040 ez free Your brothers repaid you for three-fourths of these expenses. 1040 ez free In figuring your medical expense deduction, you can include only one-fourth of your mother's medical expenses. 1040 ez free Your brothers cannot include any part of the expenses. 1040 ez free However, if you and your brothers share the nonmedical support items and you separately pay all of your mother's medical expenses, you can include the unreimbursed amount you paid for her medical expenses in your medical expenses. 1040 ez free Decedent Medical expenses paid before death by the decedent are included in figuring any deduction for medical and dental expenses on the decedent's final income tax return. 1040 ez free This includes expenses for the decedent's spouse and dependents as well as for the decedent. 1040 ez free The survivor or personal representative of a decedent can choose to treat certain expenses paid by the decedent's estate for the decedent's medical care as paid by the decedent at the time the medical services were provided. 1040 ez free The expenses must be paid within the 1-year period beginning with the day after the date of death. 1040 ez free If you are the survivor or personal representative making this choice, you must attach a statement to the decedent's Form 1040 (or the decedent's amended return, Form 1040X) saying that the expenses have not been and will not be claimed on the estate tax return. 1040 ez free Qualified medical expenses paid before death by the decedent are not deductible if paid with a tax-free distribution from any Archer MSA, Medicare Advantage MSA, or health savings account. 1040 ez free What if the decedent's return had been filed and the medical expenses were not included?   Form 1040X can be filed for the year or years the expenses are treated as paid, unless the period for filing an amended return for that year has passed. 1040 ez free Generally, an amended return must be filed within 3 years of the date the original return was filed, or within 2 years from the time the tax was paid, whichever date is later. 1040 ez free Example. 1040 ez free John properly filed his 2012 income tax return. 1040 ez free He died in 2013 with unpaid medical expenses of $1,500 from 2012 and $1,800 in 2013. 1040 ez free If the expenses are paid within the 1-year period, his survivor or personal representative can file an amended return for 2012 claiming a deduction based on the $1,500 medical expenses. 1040 ez free The $1,800 of medical expenses from 2013 can be included on the decedent's final return for 2013. 1040 ez free What if you pay medical expenses of a deceased spouse or dependent?   If you paid medical expenses for your deceased spouse or dependent, include them as medical expenses on your Form 1040 in the year paid, whether they are paid before or after the decedent's death. 1040 ez free The expenses can be included if the person was your spouse or dependent either at the time the medical services were provided or at the time you paid the expenses. 1040 ez free What Medical Expenses Are Includible? Following is a list of items that you can include in figuring your medical expense deduction. 1040 ez free The items are listed in alphabetical order. 1040 ez free This list does not include all possible medical expenses. 1040 ez free To determine if an expense not listed can be included in figuring your medical expense deduction, see What Are Medical Expenses , earlier. 1040 ez free Abortion You can include in medical expenses the amount you pay for a legal abortion. 1040 ez free Acupuncture You can include in medical expenses the amount you pay for acupuncture. 1040 ez free Alcoholism You can include in medical expenses amounts you pay for an inpatient's treatment at a therapeutic center for alcohol addiction. 1040 ez free This includes meals and lodging provided by the center during treatment. 1040 ez free You can also include in medical expenses amounts you pay for transportation to and from Alcoholics Anonymous meetings in your community if the attendance is pursuant to medical advice that membership in Alcoholics Anonymous is necessary for the treatment of a disease involving the excessive use of alcoholic liquors. 1040 ez free Ambulance You can include in medical expenses amounts you pay for ambulance service. 1040 ez free Annual Physical Examination See Physical Examination , later. 1040 ez free Artificial Limb You can include in medical expenses the amount you pay for an artificial limb. 1040 ez free Artificial Teeth You can include in medical expenses the amount you pay for artificial teeth. 1040 ez free Bandages You can include in medical expenses the cost of medical supplies such as bandages. 1040 ez free Birth Control Pills You can include in medical expenses the amount you pay for birth control pills prescribed by a doctor. 1040 ez free Body Scan You can include in medical expenses the cost of an electronic body scan. 1040 ez free Braille Books and Magazines You can include in medical expenses the part of the cost of Braille books and magazines for use by a visually impaired person that is more than the cost of regular printed editions. 1040 ez free Breast Pumps and Supplies You can include in medical expenses the cost of breast pumps and supplies that assist lactation. 1040 ez free Breast Reconstruction Surgery You can include in medical expenses the amounts you pay for breast reconstruction surgery, as well as breast prosthesis, following a mastectomy for cancer. 1040 ez free See Cosmetic Surgery , later. 1040 ez free Capital Expenses You can include in medical expenses amounts you pay for special equipment installed in a home, or for improvements, if their main purpose is medical care for you, your spouse, or your dependent. 1040 ez free The cost of permanent improvements that increase the value of your property may be partly included as a medical expense. 1040 ez free The cost of the improvement is reduced by the increase in the value of your property. 1040 ez free The difference is a medical expense. 1040 ez free If the value of your property is not increased by the improvement, the entire cost is included as a medical expense. 1040 ez free Certain improvements made to accommodate a home to your disabled condition, or that of your spouse or your dependents who live with you, do not usually increase the value of the home and the cost can be included in full as medical expenses. 1040 ez free These improvements include, but are not limited to, the following items. 1040 ez free Constructing entrance or exit ramps for your home. 1040 ez free Widening doorways at entrances or exits to your home. 1040 ez free Widening or otherwise modifying hallways and interior doorways. 1040 ez free Installing railings, support bars, or other modifications to bathrooms. 1040 ez free Lowering or modifying kitchen cabinets and equipment. 1040 ez free Moving or modifying electrical outlets and fixtures. 1040 ez free Installing porch lifts and other forms of lifts (but elevators generally add value to the house). 1040 ez free Modifying fire alarms, smoke detectors, and other warning systems. 1040 ez free Modifying stairways. 1040 ez free Adding handrails or grab bars anywhere (whether or not in bathrooms). 1040 ez free Modifying hardware on doors. 1040 ez free Modifying areas in front of entrance and exit doorways. 1040 ez free Grading the ground to provide access to the residence. 1040 ez free Only reasonable costs to accommodate a home to a disabled condition are considered medical care. 1040 ez free Additional costs for personal motives, such as for architectural or aesthetic reasons, are not medical expenses. 1040 ez free Capital expense worksheet. 1040 ez free   Use Worksheet A to figure the amount of your capital expense to include in your medical expenses. 1040 ez free Worksheet A. 1040 ez free Capital Expense Worksheet Instructions: Use this worksheet to figure the amount, if any, of your medical expenses due to a home improvement. 1040 ez free 1. 1040 ez free Enter the amount you paid for the home improvement 1. 1040 ez free   2. 1040 ez free Enter the value of your home immediately after the improvement 2. 1040 ez free       3. 1040 ez free Enter the value of your home immediately before the improvement 3. 1040 ez free       4. 1040 ez free Subtract line 3 from line 2. 1040 ez free This is the increase in the value of your home due to the improvement 4. 1040 ez free     • If line 4 is more than or equal to line 1, you have no medical expenses due to the home improvement; stop here. 1040 ez free       • If line 4 is less than line 1, go to line 5. 1040 ez free     5. 1040 ez free Subtract line 4 from line 1. 1040 ez free These are your medical expenses due to the home improvement 5. 1040 ez free   Operation and upkeep. 1040 ez free   Amounts you pay for operation and upkeep of a capital asset qualify as medical expenses, as long as the main reason for them is medical care. 1040 ez free This rule applies even if none or only part of the original cost of the capital asset qualified as a medical care expense. 1040 ez free Improvements to property rented by a person with a disability. 1040 ez free   Amounts paid to buy and install special plumbing fixtures for a person with a disability, mainly for medical reasons, in a rented house are medical expenses. 1040 ez free Example. 1040 ez free John has arthritis and a heart condition. 1040 ez free He cannot climb stairs or get into a bathtub. 1040 ez free On his doctor's advice, he installs a bathroom with a shower stall on the first floor of his two-story rented house. 1040 ez free The landlord did not pay any of the cost of buying and installing the special plumbing and did not lower the rent. 1040 ez free John can include in medical expenses the entire amount he paid. 1040 ez free Car You can include in medical expenses the cost of special hand controls and other special equipment installed in a car for the use of a person with a disability. 1040 ez free Special design. 1040 ez free   You can include in medical expenses the difference between the cost of a regular car and a car specially designed to hold a wheelchair. 1040 ez free Cost of operation. 1040 ez free   The includible costs of using a car for medical reasons are explained under Transportation , later. 1040 ez free Chiropractor You can include in medical expenses fees you pay to a chiropractor for medical care. 1040 ez free Christian Science Practitioner You can include in medical expenses fees you pay to Christian Science practitioners for medical care. 1040 ez free Contact Lenses You can include in medical expenses amounts you pay for contact lenses needed for medical reasons. 1040 ez free You can also include the cost of equipment and materials required for using contact lenses, such as saline solution and enzyme cleaner. 1040 ez free See Eyeglasses and Eye Surgery , later. 1040 ez free Crutches You can include in medical expenses the amount you pay to buy or rent crutches. 1040 ez free Dental Treatment You can include in medical expenses the amounts you pay for the prevention and alleviation of dental disease. 1040 ez free Preventive treatment includes the services of a dental hygienist or dentist for such procedures as teeth cleaning, the application of sealants, and fluoride treatments to prevent tooth decay. 1040 ez free Treatment to alleviate dental disease include services of a dentist for procedures such as X-rays, fillings, braces, extractions, dentures, and other dental ailments. 1040 ez free But see Teeth Whitening under What Expenses Are Not Includible, later. 1040 ez free Diagnostic Devices You can include in medical expenses the cost of devices used in diagnosing and treating illness and disease. 1040 ez free Example. 1040 ez free You have diabetes and use a blood sugar test kit to monitor your blood sugar level. 1040 ez free You can include the cost of the blood sugar test kit in your medical expenses. 1040 ez free Disabled Dependent Care Expenses Some disabled dependent care expenses may qualify as either: Medical expenses, or Work-related expenses for purposes of taking a credit for dependent care. 1040 ez free (See Publication 503, Child and Dependent Care Expenses. 1040 ez free ) You can choose to apply them either way as long as you do not use the same expenses to claim both a credit and a medical expense deduction. 1040 ez free Drug Addiction You can include in medical expenses amounts you pay for an inpatient's treatment at a therapeutic center for drug addiction. 1040 ez free This includes meals and lodging at the center during treatment. 1040 ez free Drugs See Medicines , later. 1040 ez free Eye Exam You can include in medical expenses the amount you pay for eye examinations. 1040 ez free Eyeglasses You can include in medical expenses amounts you pay for eyeglasses and contact lenses needed for medical reasons. 1040 ez free See Contact Lenses , earlier, for more information. 1040 ez free Eye Surgery You can include in medical expenses the amount you pay for eye surgery to treat defective vision, such as laser eye surgery or radial keratotomy. 1040 ez free Fertility Enhancement You can include in medical expenses the cost of the following procedures to overcome an inability to have children. 1040 ez free Procedures such as in vitro fertilization (including temporary storage of eggs or sperm). 1040 ez free Surgery, including an operation to reverse prior surgery that prevented the person operated on from having children. 1040 ez free Founder's Fee See Lifetime Care—Advance Payments , later. 1040 ez free Guide Dog or Other Service Animal You can include in medical expenses the costs of buying, training, and maintaining a guide dog or other service animal to assist a visually impaired or hearing disabled person, or a person with other physical disabilities. 1040 ez free In general, this includes any costs, such as food, grooming, and veterinary care, incurred in maintaining the health and vitality of the service animal so that it may perform its duties. 1040 ez free Health Institute You can include in medical expenses fees you pay for treatment at a health institute only if the treatment is prescribed by a physician and the physician issues a statement that the treatment is necessary to alleviate a physical or mental defect or illness of the individual receiving the treatment. 1040 ez free Health Maintenance Organization (HMO) You can include in medical expenses amounts you pay to entitle you, your spouse, or a dependent to receive medical care from an HMO. 1040 ez free These amounts are treated as medical insurance premiums. 1040 ez free See Insurance Premiums , later. 1040 ez free Hearing Aids You can include in medical expenses the cost of a hearing aid and batteries, repairs, and maintenance needed to operate it. 1040 ez free Home Care See Nursing Services , later. 1040 ez free Home Improvements See Capital Expenses , earlier. 1040 ez free Hospital Services You can include in medical expenses amounts you pay for the cost of inpatient care at a hospital or similar institution if a principal reason for being there is to receive medical care. 1040 ez free This includes amounts paid for meals and lodging. 1040 ez free Also see Lodging , later. 1040 ez free Insurance Premiums You can include in medical expenses insurance premiums you pay for policies that cover medical care. 1040 ez free Medical care policies can provide payment for treatment that includes: Hospitalization, surgical services, X-rays, Prescription drugs and insulin, Dental care, Replacement of lost or damaged contact lenses, and Long-term care (subject to additional limitations). 1040 ez free See Qualified Long-Term Care Insurance Contracts under Long-Term Care, later. 1040 ez free If you have a policy that provides payments for other than medical care, you can include the premiums for the medical care part of the policy if the charge for the medical part is reasonable. 1040 ez free The cost of the medical part must be separately stated in the insurance contract or given to you in a separate statement. 1040 ez free Health coverage tax credit. 1040 ez free   If, during 2013, you were an eligible trade adjustment assistance (TAA) recipient, alternative TAA (ATAA) recipient, reemployment TAA (RTAA) recipient, or Pension Benefit Guaranty Corporation (PBGC) pension recipient, you must complete Form 8885 before completing Schedule A. 1040 ez free When figuring the amount of insurance premiums you can deduct on Schedule A, do not include: Any amounts you included on Form 8885, Any qualified health insurance premiums you paid to “U. 1040 ez free S. 1040 ez free Treasury–HCTC,” or Any health coverage tax credit advance payments shown on Form 1099-H, Health Coverage Tax Credit (HCTC) Advance Payments. 1040 ez free Employer-Sponsored Health Insurance Plan Do not include in your medical and dental expenses any insurance premiums paid by an employer-sponsored health insurance plan unless the premiums are included on your Form W-2, Wage and Tax Statement. 1040 ez free Also, do not include any other medical and dental expenses paid by the plan unless the amount paid is included on your Form W-2. 1040 ez free Example. 1040 ez free You are a federal employee participating in the premium conversion plan of the Federal Employee Health Benefits (FEHB) program. 1040 ez free Your share of the FEHB premium is paid by making a pre-tax reduction in your salary. 1040 ez free Because you are an employee whose insurance premiums are paid with money that is never included in your gross income, you cannot deduct the premiums paid with that money. 1040 ez free Long-term care services. 1040 ez free   Contributions made by your employer to provide coverage for qualified long-term care services under a flexible spending or similar arrangement must be included in your income. 1040 ez free This amount will be reported as wages on your Form W-2. 1040 ez free Retired public safety officers. 1040 ez free   If you are a retired public safety officer, do not include as medical expenses any health or long-term care insurance premiums that you elected to have paid with tax-free distributions from a retirement plan. 1040 ez free This applies only to distributions that would otherwise be included in income. 1040 ez free Health reimbursement arrangement (HRA). 1040 ez free   If you have medical expenses that are reimbursed by a health reimbursement arrangement, you cannot include those expenses in your medical expenses. 1040 ez free This is because an HRA is funded solely by the employer. 1040 ez free Medicare A If you are covered under social security (or if you are a government employee who paid Medicare tax), you are enrolled in Medicare A. 1040 ez free The payroll tax paid for Medicare A is not a medical expense. 1040 ez free If you are not covered under social security (or were not a government employee who paid Medicare tax), you can voluntarily enroll in Medicare A. 1040 ez free In this situation you can include the premiums you paid for Medicare A as a medical expense. 1040 ez free Medicare B Medicare B is a supplemental medical insurance. 1040 ez free Premiums you pay for Medicare B are a medical expense. 1040 ez free Check the information you received from the Social Security Administration to find out your premium. 1040 ez free Medicare D Medicare D is a voluntary prescription drug insurance program for persons with Medicare A or B. 1040 ez free You can include as a medical expense premiums you pay for Medicare D. 1040 ez free Prepaid Insurance Premiums Premiums you pay before you are age 65 for insurance for medical care for yourself, your spouse, or your dependents after you reach age 65 are medical care expenses in the year paid if they are: Payable in equal yearly installments or more often, and Payable for at least 10 years, or until you reach age 65 (but not for less than 5 years). 1040 ez free Unused Sick Leave Used To Pay Premiums You must include in gross income cash payments you receive at the time of retirement for unused sick leave. 1040 ez free You also must include in gross income the value of unused sick leave that, at your option, your employer applies to the cost of your continuing participation in your employer's health plan after you retire. 1040 ez free You can include this cost of continuing participation in the health plan as a medical expense. 1040 ez free If you participate in a health plan where your employer automatically applies the value of unused sick leave to the cost of your continuing participation in the health plan (and you do not have the option to receive cash), do not include the value of the unused sick leave in gross income. 1040 ez free You cannot include this cost of continuing participation in that health plan as a medical expense. 1040 ez free Insurance Premiums You Cannot Include You cannot include premiums you pay for: Life insurance policies, Policies providing payment for loss of earnings, Policies for loss of life, limb, sight, etc. 1040 ez free , Policies that pay you a guaranteed amount each week for a stated number of weeks if you are hospitalized for sickness or injury, The part of your car insurance that provides medical insurance coverage for all persons injured in or by your car because the part of the premium providing insurance for you, your spouse, and your dependents is not stated separately from the part of the premium providing insurance for medical care for others, or Health or long-term care insurance if you elected to pay these premiums with tax-free distributions from a retirement plan made directly to the insurance provider and these distributions would otherwise have been included in income. 1040 ez free Taxes imposed by any governmental unit, such as Medicare taxes, are not insurance premiums. 1040 ez free Coverage for nondependents. 1040 ez free   Generally, you cannot deduct any additional premium you pay as the result of including on your policy someone who is not your spouse or dependent, even if that person is your child under age 27. 1040 ez free However, you can deduct the additional premium if that person is: Your child whom you do not claim as a dependent because of the rules for children of divorced or separated parents, Any person you could have claimed as a dependent on your return except that person received $3,900 or more of gross income or filed a joint return, or Any person you could have claimed as a dependent except that you, or your spouse if filing jointly, can be claimed as a dependent on someone else's 2013 return. 1040 ez free  Also, if you had family coverage when you added this individual to your policy and your premiums did not increase, you can enter on Schedule A (Form 1040) the full amount of your medical and dental insurance premiums. 1040 ez free Intellectually and Developmentally Disabled, Special Home for You can include in medical expenses the cost of keeping a person who is intellectually and developmentally disabled in a special home, not the home of a relative, on the recommendation of a psychiatrist to help the person adjust from life in a mental hospital to community living. 1040 ez free Laboratory Fees You can include in medical expenses the amounts you pay for laboratory fees that are part of medical care. 1040 ez free Lactation Expenses See Breast Pumps and Supplies , earlier. 1040 ez free Lead-Based Paint Removal You can include in medical expenses the cost of removing lead-based paints from surfaces in your home to prevent a child who has or had lead poisoning from eating the paint. 1040 ez free These surfaces must be in poor repair (peeling or cracking) or within the child's reach. 1040 ez free The cost of repainting the scraped area is not a medical expense. 1040 ez free If, instead of removing the paint, you cover the area with wallboard or paneling, treat these items as capital expenses. 1040 ez free See Capital Expenses , earlier. 1040 ez free Do not include the cost of painting the wallboard as a medical expense. 1040 ez free Learning Disability See Special Education , later. 1040 ez free Legal Fees You can include in medical expenses legal fees you paid that are necessary to authorize treatment for mental illness. 1040 ez free However, you cannot include in medical expenses fees for the management of a guardianship estate, fees for conducting the affairs of the person being treated, or other fees that are not necessary for medical care. 1040 ez free Lifetime Care—Advance Payments You can include in medical expenses a part of a life-care fee or “founder's fee” you pay either monthly or as a lump sum under an agreement with a retirement home. 1040 ez free The part of the payment you include is the amount properly allocable to medical care. 1040 ez free The agreement must require that you pay a specific fee as a condition for the home's promise to provide lifetime care that includes medical care. 1040 ez free You can use a statement from the retirement home to prove the amount properly allocable to medical care. 1040 ez free The statement must be based either on the home's prior experience or on information from a comparable home. 1040 ez free Dependents with disabilities. 1040 ez free   You can include in medical expenses advance payments to a private institution for lifetime care, treatment, and training of your physically or mentally impaired child upon your death or when you become unable to provide care. 1040 ez free The payments must be a condition for the institution's future acceptance of your child and must not be refundable. 1040 ez free Payments for future medical care. 1040 ez free   Generally, you cannot include in medical expenses current payments for medical care (including medical insurance) to be provided substantially beyond the end of the year. 1040 ez free This rule does not apply in situations where the future care is purchased in connection with obtaining lifetime care of the type described earlier. 1040 ez free Lodging You can include in medical expenses the cost of meals and lodging at a hospital or similar institution if a principal reason for being there is to receive medical care. 1040 ez free See Nursing Home , later. 1040 ez free You may be able to include in medical expenses the cost of lodging not provided in a hospital or similar institution. 1040 ez free You can include the cost of such lodging while away from home if all of the following requirements are met. 1040 ez free The lodging is primarily for and essential to medical care. 1040 ez free The medical care is provided by a doctor in a licensed hospital or in a medical care facility related to, or the equivalent of, a licensed hospital. 1040 ez free The lodging is not lavish or extravagant under the circumstances. 1040 ez free There is no significant element of personal pleasure, recreation, or vacation in the travel away from home. 1040 ez free The amount you include in medical expenses for lodging cannot be more than $50 for each night for each person. 1040 ez free You can include lodging for a person traveling with the person receiving the medical care. 1040 ez free For example, if a parent is traveling with a sick child, up to $100 per night can be included as a medical expense for lodging. 1040 ez free Meals are not included. 1040 ez free Do not include the cost of lodging while away from home for medical treatment if that treatment is not received from a doctor in a licensed hospital or in a medical care facility related to, or the equivalent of, a licensed hospital or if that lodging is not primarily for or essential to the medical care received. 1040 ez free Long-Term Care You can include in medical expenses amounts paid for qualified long-term care services and premiums paid for qualified long-term care insurance contracts. 1040 ez free Qualified Long-Term Care Services Qualified long-term care services are necessary diagnostic, preventive, therapeutic, curing, treating, mitigating, rehabilitative services, and maintenance and personal care services (defined later) that are: Required by a chronically ill individual, and Provided pursuant to a plan of care prescribed by a licensed health care practitioner. 1040 ez free Chronically ill individual. 1040 ez free   An individual is chronically ill if, within the previous 12 months, a licensed health care practitioner has certified that the individual meets either of the following descriptions. 1040 ez free He or she is unable to perform at least two activities of daily living without substantial assistance from another individual for at least 90 days, due to a loss of functional capacity. 1040 ez free Activities of daily living are eating, toileting, transferring, bathing, dressing, and continence. 1040 ez free He or she requires substantial supervision to be protected from threats to health and safety due to severe cognitive impairment. 1040 ez free Maintenance and personal care services. 1040 ez free    Maintenance or personal care services is care which has as its primary purpose the providing of a chronically ill individual with needed assistance with his or her disabilities (including protection from threats to health and safety due to severe cognitive impairment). 1040 ez free Qualified Long-Term Care Insurance Contracts A qualified long-term care insurance contract is an insurance contract that provides only coverage of qualified long-term care services. 1040 ez free The contract must: Be guaranteed renewable, Not provide for a cash surrender value or other money that can be paid, assigned, pledged, or borrowed, 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 must be used only to reduce future premiums or increase future benefits, and Generally 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 free The amount of qualified long-term care premiums you can include is limited. 1040 ez free You can include the following as medical expenses on Schedule A (Form 1040). 1040 ez free Qualified long-term care premiums up to the following amounts. 1040 ez free Age 40 or under – $360. 1040 ez free Age 41 to 50 – $680. 1040 ez free Age 51 to 60 – $1,360. 1040 ez free Age 61 to 70 – $3,640. 1040 ez free Age 71 or over – $4,550. 1040 ez free Unreimbursed expenses for qualified long-term care services. 1040 ez free Note. 1040 ez free The limit on premiums is for each person. 1040 ez free Also, if you are an eligible retired public safety officer, you cannot include premiums for long-term care insurance if you elected to pay these premiums with tax-free distributions from a qualified retirement plan made directly to the insurance provider and these distributions would otherwise have been included in your income. 1040 ez free Meals You can include in medical expenses the cost of meals at a hospital or similar institution if a principal reason for being there is to get medical care. 1040 ez free You cannot include in medical expenses the cost of meals that are not part of inpatient care. 1040 ez free Also see Weight-Loss Program and Nutritional Supplements , later. 1040 ez free Medical Conferences You can include in medical expenses amounts paid for admission and transportation to a medical conference if the medical conference concerns the chronic illness of yourself, your spouse, or your dependent. 1040 ez free The costs of the medical conference must be primarily for and necessary to the medical care of you, your spouse, or your dependent. 1040 ez free The majority of the time spent at the conference must be spent attending sessions on medical information. 1040 ez free The cost of meals and lodging while attending the conference is not deductible as a medical expense. 1040 ez free Medical Information Plan You can include in medical expenses amounts paid to a plan that keeps medical information in a computer data bank and retrieves and furnishes the information upon request to an attending physician. 1040 ez free Medicines You can include in medical expenses amounts you pay for prescribed medicines and drugs. 1040 ez free A prescribed drug is one that requires a prescription by a doctor for its use by an individual. 1040 ez free You can also include amounts you pay for insulin. 1040 ez free Except for insulin, you cannot include in medical expenses amounts you pay for a drug that is not prescribed. 1040 ez free Imported medicines and drugs. 1040 ez free   If you imported medicines or drugs from other countries, see Medicines and Drugs From Other Countries , under What Expenses Are Not Includible, later. 1040 ez free Nursing Home You can include in medical expenses the cost of medical care in a nursing home, home for the aged, or similar institution, for yourself, your spouse, or your dependents. 1040 ez free This includes the cost of meals and lodging in the home if a principal reason for being there is to get medical care. 1040 ez free Do not include the cost of meals and lodging if the reason for being in the home is personal. 1040 ez free You can, however, include in medical expenses the part of the cost that is for medical or nursing care. 1040 ez free Nursing Services You can include in medical expenses wages and other amounts you pay for nursing services. 1040 ez free The services need not be performed by a nurse as long as the services are of a kind generally performed by a nurse. 1040 ez free This includes services connected with caring for the patient's condition, such as giving medication or changing dressings, as well as bathing and grooming the patient. 1040 ez free These services can be provided in your home or another care facility. 1040 ez free Generally, only the amount spent for nursing services is a medical expense. 1040 ez free If the attendant also provides personal and household services, amounts paid to the attendant must be divided between the time spent performing household and personal services and the time spent for nursing services. 1040 ez free For example, because of your medical condition you pay a visiting nurse $300 per week for medical and household services. 1040 ez free She spends 10% of her time doing household services such as washing dishes and laundry. 1040 ez free You can include only $270 per week as medical expenses. 1040 ez free The $30 (10% × $300) allocated to household services cannot be included. 1040 ez free However, certain maintenance or personal care services provided for qualified long-term care can be included in medical expenses. 1040 ez free See Maintenance and personal care services under Long-Term Care, earlier. 1040 ez free Additionally, certain expenses for household services or for the care of a qualifying individual incurred to allow you to work may qualify for the child and dependent care credit. 1040 ez free See Publication 503. 1040 ez free You can also include in medical expenses part of the amount you pay for that attendant's meals. 1040 ez free Divide the food expense among the household members to find the cost of the attendant's food. 1040 ez free Then divide that cost in the same manner as in the preceding paragraph. 1040 ez free If you had to pay additional amounts for household upkeep because of the attendant, you can include the extra amounts with your medical expenses. 1040 ez free This includes extra rent or utilities you pay because you moved to a larger apartment to provide space for the attendant. 1040 ez free Employment taxes. 1040 ez free   You can include as a medical expense social security tax, FUTA, Medicare tax, and state employment taxes you pay for an attendant who provides medical care. 1040 ez free If the attendant also provides personal and household services, you can include as a medical expense only the amount of employment taxes paid for medical services as explained earlier. 1040 ez free For information on employment tax responsibilities of household employers, see Publication 926, Household Employer's Tax Guide. 1040 ez free Operations You can include in medical expenses amounts you pay for legal operations that are not for unnecessary cosmetic surgery. 1040 ez free See Cosmetic Surgery under What Expenses Are Not Includible, later. 1040 ez free Optometrist See Eyeglasses , earlier. 1040 ez free Organ Donors See Transplants , later. 1040 ez free Osteopath You can include in medical expenses amounts you pay to an osteopath for medical care. 1040 ez free Oxygen You can include in medical expenses amounts you pay for oxygen and oxygen equipment to relieve breathing problems caused by a medical condition. 1040 ez free Physical Examination You can include in medical expenses the amount you pay for an annual physical examination and diagnostic tests by a physician. 1040 ez free You do not have to be ill at the time of the examination. 1040 ez free Pregnancy Test Kit You can include in medical expenses the amount you pay to purchase a pregnancy test kit to determine if you are pregnant. 1040 ez free Prosthesis See Artificial Limb and Breast Reconstruction Surgery , earlier. 1040 ez free Psychiatric Care You can include in medical expenses amounts you pay for psychiatric care. 1040 ez free This includes the cost of supporting a mentally ill dependent at a specially equipped medical center where the dependent receives medical care. 1040 ez free See Psychoanalysis, next, and Transportation , later. 1040 ez free Psychoanalysis You can include in medical expenses payments for psychoanalysis. 1040 ez free However, you cannot include payments for psychoanalysis that is part of required training to be a psychoanalyst. 1040 ez free Psychologist You can include in medical expenses amounts you pay to a psychologist for medical care. 1040 ez free Special Education You can include in medical expenses fees you pay on a doctor's recommendation for a child's tutoring by a teacher who is specially trained and qualified to work with children who have learning disabilities caused by mental or physical impairments, including nervous system disorders. 1040 ez free You can include in medical expenses the cost (tuition, meals, and lodging) of attending a school that furnishes special education to help a child to overcome learning disabilities. 1040 ez free A doctor must recommend that the child attend the school. 1040 ez free Overcoming the learning disabilities must be a principal reason for attending the school, and any ordinary education received must be incidental to the special education provided. 1040 ez free Special education includes: Teaching Braille to a visually impaired person, Teaching lip reading to a hearing disabled person, or Giving remedial language training to correct a condition caused by a birth defect. 1040 ez free Sterilization You can include in medical expenses the cost of a legal sterilization (a legally performed operation to make a person unable to have children). 1040 ez free Also see Vasectomy , later. 1040 ez free Stop-Smoking Programs You can include in medical expenses amounts you pay for a program to stop smoking. 1040 ez free However, you cannot include in medical expenses amounts you pay for drugs that do not require a prescription, such as nicotine gum or patches, that are designed to help stop smoking. 1040 ez free Surgery See Operations , earlier. 1040 ez free Telephone You can include in medical expenses the cost of special telephone equipment that lets a person who is deaf, hard of hearing or has a speech disability communicate over a regular telephone. 1040 ez free This includes teletypewriter (TTY) and telecommunications device for the deaf (TDD) equipment. 1040 ez free You can also include the cost of repairing the equipment. 1040 ez free Television You can include in medical expenses the cost of equipment that displays the audio part of television programs as subtitles for persons with a hearing disability. 1040 ez free This may be the cost of an adapter that attaches to a regular set. 1040 ez free It also may be the part of the cost of a specially equipped television that exceeds the cost of the same model regular television set. 1040 ez free Therapy You can include in medical expenses amounts you pay for therapy received as medical treatment. 1040 ez free Transplants You can include in medical expenses amounts paid for medical care you receive because you are a donor or a possible donor of a kidney or other organ. 1040 ez free This includes transportation. 1040 ez free You can include any expenses you pay for the medical care of a donor in connection with the donating of an organ. 1040 ez free This includes transportation. 1040 ez free Transportation You can include in medical expenses amounts paid for transportation primarily for, and essential to, medical care. 1040 ez free You can include:    Bus, taxi, train, or plane fares or ambulance service, Transportation expenses of a parent who must go with a child who needs medical care, Transportation expenses of a nurse or other person who can give injections, medications, or other treatment required by a patient who is traveling to get medical care and is unable to travel alone, and Transportation expenses for regular visits to see a mentally ill dependent, if these visits are recommended as a part of treatment. 1040 ez free Car expenses. 1040 ez free   You can include out-of-pocket expenses, such as the cost of gas and oil, when you use a car for medical reasons. 1040 ez free You cannot include depreciation, insurance, general repair, or maintenance expenses. 1040 ez free   If you do not want to use your actual expenses for 2013, you can use the standard medical mileage rate of 24 cents a mile. 1040 ez free    You can also include parking fees and tolls. 1040 ez free You can add these fees and tolls to your medical expenses whether you use actual expenses or the standard mileage rate. 1040 ez free Example. 1040 ez free In 2013, Bill Jones drove 2,800 miles for medical reasons. 1040 ez free He spent $500 for gas, $30 for oil, and $100 for tolls and parking. 1040 ez free He wants to figure the amount he can include in medical expenses both ways to see which gives him the greater deduction. 1040 ez free He figures the actual expenses first. 1040 ez free He adds the $500 for gas, the $30 for oil, and the $100 for tolls and parking for a total of $630. 1040 ez free He then figures the standard mileage amount. 1040 ez free He multiplies 2,800 miles by 24 cents a mile for a total of $672. 1040 ez free He then adds the $100 tolls and parking for a total of $772. 1040 ez free Bill includes the $772 of car expenses with his other medical expenses for the year because the $772 is more than the $630 he figured using actual expenses. 1040 ez free Transportation expenses you cannot include. 1040 ez free    You cannot include in medical expenses the cost of transportation in the following situations. 1040 ez free Going to and from work, even if your condition requires an unusual means of transportation. 1040 ez free Travel for purely personal reasons to another city for an operation or other medical care. 1040 ez free Travel that is merely for the general improvement of one's health. 1040 ez free The costs of operating a specially equipped car for other than medical reasons. 1040 ez free Trips You can include in medical expenses amounts you pay for transportation to another city if the trip is primarily for, and essential to, receiving medical services. 1040 ez free You may be able to include up to $50 for each night for each person. 1040 ez free You can include lodging for a person traveling with the person receiving the medical care. 1040 ez free For example, if a parent is traveling with a sick child, up to $100 per night can be included as a medical expense for lodging. 1040 ez free Meals are not included. 1040 ez free See Lodging , earlier. 1040 ez free You cannot include in medical expenses a trip or vacation taken merely for a change in environment, improvement of morale, or general improvement of health, even if the trip is made on the advice of a doctor. 1040 ez free However, see Medical Conferences , earlier. 1040 ez free Tuition Under special circumstances, you can include charges for tuition in medical expenses. 1040 ez free See Special Education , earlier. 1040 ez free You can include charges for a health plan included in a lump-sum tuition fee if the charges are separately stated or can easily be obtained from the school. 1040 ez free Vasectomy You can include in medical expenses the amount you pay for a vasectomy. 1040 ez free Vision Correction Surgery See Eye Surgery , earlier. 1040 ez free Weight-Loss Program You can include in medical expenses amounts you pay to lose weight if it is a treatment for a specific disease diagnosed by a physician (such as obesity, hypertension, or heart disease). 1040 ez free This includes fees you pay for membership in a weight reduction group as well as fees for attendance at periodic meetings. 1040 ez free You cannot include membership dues in a gym, health club, or spa as medical expenses, but you can include separate fees charged there for weight loss activities. 1040 ez free You cannot include the cost of diet food or beverages in medical expenses because the diet food and beverages substitute for what is normally consumed to satisfy nutritional needs. 1040 ez free You can include the cost of special food in medical expenses only if: The food does not satisfy normal nutritional needs, The food alleviates or treats an illness, and The need for the food is substantiated by a physician. 1040 ez free The amount you can include in medical expenses is limited to the amount by which the cost of the special food exceeds the cost of a normal diet. 1040 ez free See also Weight-Loss Program under What Expenses Are Not Includible, later. 1040 ez free Wheelchair You can include in medical expenses amounts you pay for a wheelchair used mainly for the relief of sickness or disability, and not just to provide transportation to and from work. 1040 ez free The cost of operating and maintaining the wheelchair is also a medical expense. 1040 ez free Wig You can include in medical expenses the cost of a wig purchased upon the advice of a physician for the mental health of a patient who has lost all of his or her hair from disease. 1040 ez free X-ray You can include in medical expenses amounts you pay for X-rays for medical reasons. 1040 ez free What Expenses Are Not Includible? Following is a list of some items that you cannot include in figuring your medical expense deduction. 1040 ez free The items are listed in alphabetical order. 1040 ez free Baby Sitting, Childcare, and Nursing Services for a Normal, Healthy Baby You cannot include in medical expenses amounts you pay for the care of children, even if the expenses enable you, your spouse, or your dependent to get medical or dental treatment. 1040 ez free Also, any expense allowed as a childcare credit cannot be treated as an expense paid for medical care. 1040 ez free Controlled Substances You cannot include in medical expenses amounts you pay for controlled substances (such as marijuana, laetrile, etc. 1040 ez free ), even if such substances are legalized by state law. 1040 ez free Such substances are not legal under federal law and cannot be included in medical expenses. 1040 ez free Cosmetic Surgery Generally, you cannot include in medical expenses the amount you pay for unnecessary cosmetic surgery. 1040 ez free This includes any procedure that is directed at improving the patient's appearance and does not meaningfully promote the proper function of the body or prevent or treat illness or disease. 1040 ez free You generally cannot include in medical expenses the amount you pay for procedures such as face lifts, hair transplants, hair removal (electrolysis), and liposuction. 1040 ez free You can include in medical expenses the amount you pay for cosmetic surgery if it is necessary to improve a deformity arising from, or directly related to, a congenital abnormality, a personal injury resulting from an accident or trauma, or a disfiguring disease. 1040 ez free Example. 1040 ez free An individual undergoes surgery that removes a breast as part of treatment for cancer. 1040 ez free She pays a surgeon to reconstruct the breast. 1040 ez free The surgery to reconstruct the breast corrects a deformity directly related to the disease. 1040 ez free The cost of the surgery is includible in her medical expenses. 1040 ez free Dancing Lessons You cannot include in medical expenses the cost of dancing lessons, swimming lessons, etc. 1040 ez free , even if they are recommended by a doctor, if they are only for the improvement of general health. 1040 ez free Diaper Service You cannot include in medical expenses the amount you pay for diapers or diaper services, unless they are needed to relieve the effects of a particular disease. 1040 ez free Electrolysis or Hair Removal See Cosmetic Surgery , earlier. 1040 ez free Flexible Spending Account You cannot include in medical expenses amounts for which you are fully reimbursed by your flexible spending account if you contribute a part of your income on a pre-tax basis to pay for the qualified benefit. 1040 ez free Funeral Expenses You cannot include in medical expenses amounts you pay for funerals. 1040 ez free Future Medical Care Generally, you cannot include in medical expenses current payments for medical care (including medical insurance) to be provided substantially beyond the end of the year. 1040 ez free This rule does not apply in situations where the future care is purchased in connection with obtaining lifetime care or long-term care of the type described at Lifetime Care—Advance Payments or Long-Term Care, earlier under What Medical Expenses Are Includible. 1040 ez free Hair Transplant See Cosmetic Surgery , earlier. 1040 ez free Health Club Dues You cannot include in medical expenses health club dues or amounts paid to improve one's general health or to relieve physical or mental discomfort not related to a particular medical condition. 1040 ez free You cannot include in medical expenses the cost of membership in any club organized for business, pleasure, recreation, or other social purpose. 1040 ez free Health Coverage Tax Credit You cannot include in medical expenses amounts you pay for health insurance that you use in figuring your health coverage tax credit. 1040 ez free For more information, see Health Coverage Tax Credit , later. 1040 ez free Health Savings Accounts You cannot include in medical expenses any payment or distribution for medical expenses out of a health savings account. 1040 ez free Contributions to health savings accounts are deducted separately. 1040 ez free See Publication 969. 1040 ez free Household Help You cannot include in medical expenses the cost of household help, even if such help is recommended by a doctor. 1040 ez free This is a personal expense that is not deductible. 1040 ez free However, you may be able to include certain expenses paid to a person providing nursing-type services. 1040 ez free For more information, see Nursing Services , earlier under What Medical Expenses Are Includible. 1040 ez free Also, certain maintenance or personal care services provided for qualified long-term care can be included in medical expenses. 1040 ez free For more information, see Long-Term Care , earlier under What Medical Expenses Are Includible. 1040 ez free Illegal Operations and Treatments You cannot include in medical expenses amounts you pay for illegal operations, treatments, or controlled substances whether rendered or prescribed by licensed or unlicensed practitioners. 1040 ez free Insurance Premiums See Insurance Premiums under What Medical Expenses Are Includible, earlier. 1040 ez free Maternity Clothes You cannot include in medical expenses amounts you pay for maternity clothes. 1040 ez free Medical Savings Account (MSA) You cannot include in medical expenses amounts you contribute to an Archer MSA. 1040 ez free You cannot include expenses you pay for with a tax-free distribution from your Archer MSA. 1040 ez free You also cannot use other funds equal to the amount of the distribution and include the expenses. 1040 ez free For more information on Archer MSAs, see Publication 969. 1040 ez free Medicines and Drugs From Other Countries In general, you cannot include in your medical expenses the cost of a prescribed drug brought in (or ordered shipped) from another country. 1040 ez free You can only include the cost of a drug that was imported legally. 1040 ez free For example, you can include the cost of a prescribed drug the Food and Drug Administration announces can be legally imported by individuals. 1040 ez free You can include the cost of a prescribed drug you purchase and consume in another country if the drug is legal in both the other country and the United States. 1040 ez free Nonprescription Drugs and Medicines Except for insulin, you cannot include in medical expenses amounts you pay for a drug that is not prescribed. 1040 ez free Example. 1040 ez free Your doctor recommends that you take aspirin. 1040 ez free Because aspirin is a drug that does not require a physician's prescription, you cannot include its cost in your medical expenses. 1040 ez free Nutritional Supplements You cannot include in medical expenses the cost of nutritional supplements, vitamins, herbal supplements, “natural medicines,” etc. 1040 ez free unless they are recommended by a medical practitioner as treatment for a specific medical condition diagnosed by a physician. 1040 ez free Otherwise, these items are taken to maintain your ordinary good health, and are not for medical care. 1040 ez free Personal Use Items You cannot include in medical expenses the cost of an item ordinarily used for personal, living, or family purposes unless it is used primarily to prevent or alleviate a physical or mental defect or illness. 1040 ez free For example, the cost of a toothbrush and toothpaste is a nondeductible personal expense. 1040 ez free In order to accommodate an individual with a physical defect, you may have to purchase an item ordinarily used as a personal, living, or family item in a special form. 1040 ez free You can include the excess of the cost of the item in a special form over the cost of the item in normal form as a medical expense. 1040 ez free (See Braille Books and Magazines under What Medical Expenses Are Includible, earlier. 1040 ez free ) Swimming Lessons See Dancing Lessons , earlier. 1040 ez free Teeth Whitening You cannot include in medical expenses amounts paid to whiten teeth. 1040 ez free See Cosmetic Surgery , earlier. 1040 ez free Veterinary Fees You generally cannot include veterinary fees in your medical expenses, but see Guide Dog or Other Service Animal under What Medical Expenses Are Includible, earlier. 1040 ez free Weight-Loss Program You cannot include in medical expenses the cost of a weight-loss program if the purpose of the weight loss is the improvement of appearance, general health, or sense of well-being. 1040 ez free You cannot include amounts you pay to lose weight unless the weight loss is a treatment for a specific disease diagnosed by a physician (such as obesity, hypertension, or heart disease). 1040 ez free If the weight-loss treatment is not for a specific disease diagnosed by a physician, you cannot include either the fees you pay for membership in a weight reduction group or fees for attendance at periodic meetings. 1040 ez free Also, you cannot include membership dues in a gym, health club, or spa. 1040 ez free You cannot include the cost of diet food or beverages in medical expenses because the diet food and beverages substitute for what is normally consumed to satisfy nutritional needs. 1040 ez free See Weight-Loss Program under What Medical Expenses Are Includible, earlier. 1040 ez free How Do You Treat Reimbursements? You can include in medical expenses only those amounts paid during the tax year for which you received no insurance or other reimbursement. 1040 ez free Insurance Reimbursement You must reduce your total medical expenses for the year by all reimbursements for medical expenses that you receive from insurance or other sources during the year. 1040 ez free This includes payments from Medicare. 1040 ez free Even if a policy provides reimbursement only for certain specific medical expenses, you must use amounts you receive from that policy to reduce your total medical expenses, including those it does not reimburse. 1040 ez free Example. 1040 ez free You have insurance policies that cover your hospital and doctors' bills but not your nursing bills. 1040 ez free The insurance you receive for the hospital and doctors' bills is more than their charges. 1040 ez free In figuring your medical deduction, you must reduce the total amount you spent for medical care by the total amount of insurance you received, even if the policies do not cover some of your medical expenses. 1040 ez free Health reimbursement arrange