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Ez 1040 Form 2012

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Ez 1040 Form 2012

Ez 1040 form 2012 Internal Revenue Bulletin:  2010-9  March 1, 2010  Rev. Ez 1040 form 2012 Proc. Ez 1040 form 2012 2010-18 Table of Contents SECTION 1. Ez 1040 form 2012 PURPOSE SECTION 2. Ez 1040 form 2012 BACKGROUND SECTION 3. Ez 1040 form 2012 SCOPE SECTION 4. Ez 1040 form 2012 APPLICATION SECTION 5. Ez 1040 form 2012 EFFECTIVE DATE SECTION 6. Ez 1040 form 2012 DRAFTING INFORMATION SECTION 1. Ez 1040 form 2012 PURPOSE This revenue procedure provides: (1) limitations on depreciation deductions for owners of passenger automobiles first placed in service by the taxpayer during calendar year 2010, including a separate table of limitations on depreciation deductions for trucks and vans; and (2) the amounts to be included in income by lessees of passenger automobiles first leased by the taxpayer during calendar year 2010, including a separate table of inclusion amounts for lessees of trucks and vans. Ez 1040 form 2012 The tables detailing these depreciation limitations and lessee inclusion amounts reflect the automobile price inflation adjustments required by § 280F(d)(7) of the Internal Revenue Code. Ez 1040 form 2012 SECTION 2. Ez 1040 form 2012 BACKGROUND . Ez 1040 form 2012 01 For owners of passenger automobiles, § 280F(a) imposes dollar limitations on the depreciation deduction for the year the taxpayer places the passenger automobile in service and for each succeeding year. Ez 1040 form 2012 Section 280F(d)(7) requires the amounts allowable as depreciation deductions to be increased by a price inflation adjustment amount for passenger automobiles placed in service after 1988. Ez 1040 form 2012 The method of calculating this price inflation amount for trucks and vans placed in service in or after calendar year 2003 uses a different CPI “automobile component” (the “new trucks” component) than that used in the price inflation amount calculation for other passenger automobiles (the “new cars” component), resulting in somewhat higher depreciation deductions for trucks and vans. Ez 1040 form 2012 This change reflects the higher rate of price inflation for trucks and vans since 1988. Ez 1040 form 2012 . Ez 1040 form 2012 02 Section 280F(c) requires a reduction in the deduction allowed to the lessee of a leased passenger automobile. Ez 1040 form 2012 The reduction must be substantially equivalent to the limitations on the depreciation deductions imposed on owners of passenger automobiles. Ez 1040 form 2012 Under § 1. Ez 1040 form 2012 280F-7(a) of the Income Tax Regulations, this reduction requires a lessee to include in gross income an inclusion amount determined by applying a formula to the amount obtained from a table. Ez 1040 form 2012 One table applies to lessees of trucks and vans and another table applies to all other passenger automobiles. Ez 1040 form 2012 Each table shows inclusion amounts for a range of fair market values for each taxable year after the passenger automobile is first leased. Ez 1040 form 2012 SECTION 3. Ez 1040 form 2012 SCOPE . Ez 1040 form 2012 01 The limitations on depreciation deductions in section 4. Ez 1040 form 2012 01(2) of this revenue procedure apply to passenger automobiles (other than leased passenger automobiles) that are placed in service by the taxpayer in calendar year 2010, and continue to apply for each taxable year that the passenger automobile remains in service. Ez 1040 form 2012 . Ez 1040 form 2012 02 The tables in section 4. Ez 1040 form 2012 02 of this revenue procedure apply to leased passenger automobiles for which the lease term begins during calendar year 2010. Ez 1040 form 2012 Lessees of these passenger automobiles must use these tables to determine the inclusion amount for each taxable year during which the passenger automobile is leased. Ez 1040 form 2012 See Rev. Ez 1040 form 2012 Proc. Ez 1040 form 2012 2005-13, 2005-1 C. Ez 1040 form 2012 B. Ez 1040 form 2012 759, for passenger automobiles first leased before calendar year 2006; Rev. Ez 1040 form 2012 Proc. Ez 1040 form 2012 2006-18, 2006-1 C. Ez 1040 form 2012 B. Ez 1040 form 2012 645, for passenger automobiles first leased during calendar year 2006; Rev. Ez 1040 form 2012 Proc. Ez 1040 form 2012 2007-30, 2007-1 C. Ez 1040 form 2012 B. Ez 1040 form 2012 1104, for passenger automobiles first leased during calendar year 2007; Rev. Ez 1040 form 2012 Proc. Ez 1040 form 2012 2008-22, 2008-12 I. Ez 1040 form 2012 R. Ez 1040 form 2012 B. Ez 1040 form 2012 658, for passenger automobiles first leased during calendar year 2008; and Rev. Ez 1040 form 2012 Proc. Ez 1040 form 2012 2009-24, 2009-17 I. Ez 1040 form 2012 R. Ez 1040 form 2012 B. Ez 1040 form 2012 885, for passenger automobiles first leased during calendar year 2009. Ez 1040 form 2012 SECTION 4. Ez 1040 form 2012 APPLICATION . Ez 1040 form 2012 01 Limitations on Depreciation Deductions for Certain Automobiles. Ez 1040 form 2012 (1) Amount of the inflation adjustment. Ez 1040 form 2012 (a) Passenger automobiles (other than trucks or vans). Ez 1040 form 2012 Under § 280F(d)(7)(B)(i), the automobile price inflation adjustment for any calendar year is the percentage (if any) by which the CPI automobile component for October of the preceding calendar year exceeds the CPI automobile component for October 1987. Ez 1040 form 2012 The term “CPI automobile component” is defined in § 280F(d)(7)(B)(ii) as the “automobile component” of the Consumer Price Index for all Urban Consumers published by the Department of Labor. Ez 1040 form 2012 The new car component of the CPI was 115. Ez 1040 form 2012 2 for October 1987 and 137. Ez 1040 form 2012 851 for October 2009. Ez 1040 form 2012 The October 2009 index exceeded the October 1987 index by 22. Ez 1040 form 2012 651. Ez 1040 form 2012 Therefore, the automobile price inflation adjustment for 2010 for passenger automobiles (other than trucks and vans) is 19. Ez 1040 form 2012 66 percent (22. Ez 1040 form 2012 651/115. Ez 1040 form 2012 2 x 100%). Ez 1040 form 2012 The dollar limitations in § 280F(a) are multiplied by a factor of 0. Ez 1040 form 2012 1966, and the resulting increases, after rounding to the nearest $100, are added to the 1988 limitations to give the depreciation limitations applicable to passenger automobiles (other than trucks and vans) for calendar year 2010. Ez 1040 form 2012 This adjustment applies to all passenger automobiles (other than trucks and vans) that are first placed in service in calendar year 2010. Ez 1040 form 2012 (b) Trucks and vans. Ez 1040 form 2012 To determine the dollar limitations for trucks and vans first placed in service during calendar year 2010, the new truck component of the CPI is used instead of the new car component. Ez 1040 form 2012 The new truck component of the CPI was 112. Ez 1040 form 2012 4 for October 1987 and 140. Ez 1040 form 2012 897 for October 2009. Ez 1040 form 2012 The October 2009 index exceeded the October 1987 index by 28. Ez 1040 form 2012 497. Ez 1040 form 2012 Therefore, the automobile price inflation adjustment for 2010 for trucks and vans is 25. Ez 1040 form 2012 35 percent (28. Ez 1040 form 2012 497/112. Ez 1040 form 2012 4 x 100%). Ez 1040 form 2012 The dollar limitations in § 280F(a) are multiplied by a factor of 0. Ez 1040 form 2012 2535, and the resulting increases, after rounding to the nearest $100, are added to the 1988 limitations to give the depreciation limitations for trucks and vans. Ez 1040 form 2012 This adjustment applies to all trucks and vans that are first placed in service in calendar year 2010. Ez 1040 form 2012 (2) Amount of the limitation. Ez 1040 form 2012 Tables 1 and 2 contain the dollar amount of the depreciation limitation for each taxable year for passenger automobiles a taxpayer places in service in calendar year 2010. Ez 1040 form 2012 Use Table 1 for a passenger automobile (other than a truck or van) and Table 2 for a truck or van placed in service in calendar year 2010. Ez 1040 form 2012 REV. Ez 1040 form 2012 PROC. Ez 1040 form 2012 2010-18 TABLE 1 DEPRECIATION LIMITATIONS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS OR VANS) PLACED IN SERVICE IN CALENDAR YEAR 2010 Tax Year Amount 1st Tax Year $3,060 2nd Tax Year $4,900 3rd Tax Year $2,950 Each Succeeding Year $1,775 REV. Ez 1040 form 2012 PROC. Ez 1040 form 2012 2010-18 TABLE 2 DEPRECIATION LIMITATIONS FOR TRUCKS AND VANS PLACED IN SERVICE IN CALENDAR YEAR 2010 Tax Year Amount 1st Tax Year $3,160 2nd Tax Year $5,100 3rd Tax Year $3,050 Each Succeeding Year $1,875 . Ez 1040 form 2012 02 Inclusions in Income of Lessees of Passenger Automobiles. Ez 1040 form 2012 A taxpayer must follow the procedures in § 1. Ez 1040 form 2012 280F-7(a) for determining the inclusion amounts for passenger automobiles first leased in calendar year 2010. Ez 1040 form 2012 In applying these procedures, lessees of passenger automobiles other than trucks and vans should use Table 3 of this revenue procedure, while lessees of trucks and vans should use Table 4 of this revenue procedure. Ez 1040 form 2012 REV. Ez 1040 form 2012 PROC. Ez 1040 form 2012 2010-18 TABLE 3 DOLLAR AMOUNTS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS OR VANS) WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2010 Fair Market Value of Passenger Automobile Tax Year During Lease Over Not Over 1st 2nd 3rd 4th 5th & Later $16,700 $17,000 3 7 10 11 14 17,000 17,500 4 8 13 15 16 17,500 18,000 5 10 16 19 21 18,000 18,500 6 13 18 23 26 18,500 19,000 7 15 22 26 31 19,000 19,500 8 17 25 30 35 19,500 20,000 9 19 29 34 39 20,000 20,500 10 21 32 38 44 20,500 21,000 11 23 35 42 48 21,000 21,500 12 26 38 45 53 21,500 22,000 13 28 41 50 57 22,000 23,000 14 31 46 56 63 23,000 24,000 16 36 52 63 73 24,000 25,000 18 40 59 71 81 25,000 26,000 20 44 66 78 90 26,000 27,000 22 49 71 86 100 27,000 28,000 24 53 78 94 108 28,000 29,000 26 57 85 101 118 29,000 30,000 28 61 92 109 126 30,000 31,000 30 66 97 117 135 31,000 32,000 32 70 104 125 144 32,000 33,000 34 74 111 132 153 33,000 34,000 36 79 117 140 161 34,000 35,000 38 83 123 148 171 35,000 36,000 40 87 130 156 179 36,000 37,000 42 92 136 163 188 37,000 38,000 44 96 143 170 198 38,000 39,000 46 100 149 179 206 39,000 40,000 48 105 155 186 215 40,000 41,000 50 109 162 194 224 41,000 42,000 52 113 169 201 233 42,000 43,000 54 118 174 210 241 43,000 44,000 56 122 181 217 251 44,000 45,000 58 126 188 225 259 45,000 46,000 60 131 194 232 269 46,000 47,000 61 135 201 240 277 47,000 48,000 63 140 207 248 286 48,000 49,000 65 144 213 256 295 49,000 50,000 67 148 220 263 304 50,000 51,000 69 153 226 271 313 51,000 52,000 71 157 232 279 322 52,000 53,000 73 161 239 287 331 53,000 54,000 75 166 245 294 340 54,000 55,000 77 170 252 302 348 55,000 56,000 79 174 258 310 358 56,000 57,000 81 178 265 318 366 57,000 58,000 83 183 271 325 375 58,000 59,000 85 187 278 333 384 59,000 60,000 87 191 284 341 393 60,000 62,000 90 198 294 352 406 62,000 64,000 94 207 306 368 424 64,000 66,000 98 215 320 382 443 66,000 68,000 102 224 332 398 460 68,000 70,000 106 232 346 413 478 70,000 72,000 110 241 358 429 496 72,000 74,000 114 250 371 444 513 74,000 76,000 118 258 384 460 531 76,000 78,000 122 267 396 476 549 78,000 80,000 126 276 409 491 566 80,000 85,000 132 291 432 518 598 85,000 90,000 142 313 464 556 643 90,000 95,000 152 334 497 594 687 95,000 100,000 162 356 528 634 731 100,000 110,000 177 388 577 691 798 110,000 120,000 196 432 641 768 887 120,000 130,000 216 475 705 846 976 130,000 140,000 236 518 770 922 1,065 140,000 150,000 256 561 834 1,000 1,154 150,000 160,000 275 605 898 1,077 1,243 160,000 170,000 295 648 963 1,153 1,333 170,000 180,000 315 691 1,027 1,231 1,421 180,000 190,000 334 735 1,091 1,308 1,510 190,000 200,000 354 778 1,155 1,386 1,599 200,000 210,000 374 821 1,220 1,462 1,688 210,000 220,000 393 865 1,284 1,539 1,777 220,000 230,000 413 908 1,348 1,617 1,866 230,000 240,000 433 951 1,413 1,693 1,956 240,000 and up 453 995 1,476 1,771 2,044 REV. Ez 1040 form 2012 PROC. Ez 1040 form 2012 2010-18 TABLE 4 DOLLAR AMOUNTS FOR TRUCKS AND VANS WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2010 Fair Market Value of Passenger Automobile Tax Year During Lease Over Not Over 1st 2nd 3rd 4th 5th & Later 17,000 17,500 3 6 9 10 11 17,500 18,000 4 8 12 14 16 18,000 18,500 5 10 15 18 21 18,500 19,000 6 12 19 22 24 19,000 19,500 7 15 21 26 29 19,500 20,000 8 17 25 29 34 20,000 20,500 9 19 28 33 38 20,500 21,000 10 21 31 37 43 21,000 21,500 11 23 35 41 47 21,500 22,000 12 25 38 45 51 22,000 23,000 13 29 42 51 58 23,000 24,000 15 33 49 58 67 24,000 25,000 17 37 56 66 76 25,000 26,000 19 42 62 73 85 26,000 27,000 21 46 68 82 93 27,000 28,000 23 50 75 89 103 28,000 29,000 25 55 81 97 111 29,000 30,000 27 59 88 104 121 30,000 31,000 29 63 94 113 129 31,000 32,000 31 68 100 120 138 32,000 33,000 33 72 107 127 148 33,000 34,000 35 76 114 135 156 34,000 35,000 37 81 119 143 165 35,000 36,000 39 85 126 151 174 36,000 37,000 41 89 133 158 183 37,000 38,000 43 94 139 166 191 38,000 39,000 45 98 145 174 201 39,000 40,000 47 102 152 182 209 40,000 41,000 49 106 159 189 218 41,000 42,000 51 111 164 198 227 42,000 43,000 53 115 171 205 236 43,000 44,000 55 119 178 213 245 44,000 45,000 57 124 184 220 254 45,000 46,000 59 128 190 228 263 46,000 47,000 60 133 197 235 272 47,000 48,000 62 137 203 244 280 48,000 49,000 64 142 209 251 290 49,000 50,000 66 146 216 259 298 50,000 51,000 68 150 223 266 308 51,000 52,000 70 154 229 275 316 52,000 53,000 72 159 235 282 325 53,000 54,000 74 163 242 290 334 54,000 55,000 76 167 249 297 343 55,000 56,000 78 172 254 305 352 56,000 57,000 80 176 261 313 361 57,000 58,000 82 180 268 320 370 58,000 59,000 84 185 274 328 378 59,000 60,000 86 189 280 336 388 60,000 62,000 89 195 291 347 401 62,000 64,000 93 204 303 363 418 64,000 66,000 97 213 315 379 436 66,000 68,000 101 221 329 394 454 68,000 70,000 105 230 341 410 472 70,000 72,000 109 239 354 424 490 72,000 74,000 113 247 367 440 508 74,000 76,000 117 256 380 455 526 76,000 78,000 121 264 393 471 543 78,000 80,000 125 273 406 486 561 80,000 85,000 131 289 428 513 592 85,000 90,000 141 310 461 552 636 90,000 95,000 151 332 492 591 681 95,000 100,000 161 353 525 629 726 100,000 110,000 176 386 573 686 793 110,000 120,000 195 430 637 763 882 120,000 130,000 215 473 701 841 971 130,000 140,000 235 516 766 918 1,059 140,000 150,000 255 559 830 995 1,149 150,000 160,000 274 603 894 1,072 1,238 160,000 170,000 294 646 958 1,150 1,326 170,000 180,000 314 689 1,023 1,226 1,416 180,000 190,000 333 733 1,087 1,303 1,505 190,000 200,000 353 776 1,151 1,381 1,594 200,000 210,000 373 819 1,216 1,457 1,683 210,000 220,000 392 863 1,280 1,534 1,772 220,000 230,000 412 906 1,344 1,612 1,861 230,000 240,000 432 949 1,409 1,689 1,949 240,000 and up 452 992 1,473 1,766 2,039 SECTION 5. Ez 1040 form 2012 EFFECTIVE DATE This revenue procedure applies to passenger automobiles that a taxpayer first places in service or first leases during calendar year 2010. Ez 1040 form 2012 SECTION 6. Ez 1040 form 2012 DRAFTING INFORMATION The principal author of this revenue procedure is Bernard P. Ez 1040 form 2012 Harvey of the Office of Associate Chief Counsel (Income Tax & Accounting). Ez 1040 form 2012 For further information regarding this revenue procedure, contact Mr. Ez 1040 form 2012 Harvey at (202) 622-4930 (not a toll-free call). Ez 1040 form 2012 Prev  Up  Next   Home   More Internal Revenue Bulletins
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Offshore Voluntary Disclosure Initiative: Passive Foreign Income Company Investment Computations

September 2010

A significant number of Offshore Voluntary Disclosure Practice (VDP) cases involve Passive Foreign Investment Company (PFIC) investments.  A lack of historical information on the cost basis and holding period of many PFIC investments makes it difficult for taxpayers to prepare statutory PFIC computations and for the Service to verify them.  As a result, resolution of many VDP cases is being unduly delayed.  Therefore, for purposes of this initiative, the Service is offering taxpayers an alternative to the statutory PFIC computation that will resolve PFIC issues on a basis that is consistent with the Mark to Market (MTM) methodology authorized in Internal Revenue Code section 1296 but will not require complete reconstruction of historical data.

The terms of this alternative resolution are as follows:

  • If elected, the alternative resolution will apply to all PFIC investments in cases that have been accepted into the VDP and that qualify for the special civil penalty framework announced by the IRS on March 23, 2009.  The initial MTM computation of gain or loss under this methodology will be for the first year of the VDP application but could be made after 2003 depending on when the first PFIC investment was made.  Generally, under the terms of the March 23, 2009 framework, the first year of the VDP application will be for the calendar year ending December 31, 2003.   This will require a determination of the basis for every PFIC investment, which should be agreed between the taxpayer and the Service based on the best available evidence. 


  • A tax rate of 20% will be applied to the MTM gain(s), MTM net gain(s) and gains from all PFIC dispositions during the VDP period, in lieu of the rate contained in section 1291(a)(1)(B) for the amount allocable to the current year and section 1291(c)(2) for the deferred tax amount(s) allocable to any other taxable year.

  • A rate of 7% of the tax computed for PFIC investments marked to market in the first year of the VDP application will be added to the tax for that year, in lieu of the interest charge mechanism described in sections 1291(c) and 1296(j).

  • MTM losses will be limited to unreversed inclusions (generally, previously reported MTM gains less allowed MTM losses) on an investment-by-investment basis in the same manner as section 1296. During the VDP period, these MTM losses will be treated as  ordinary losses (IRC 1296[c][1][B]) and the tax benefit is limited to the tax rate applicable to the MTM gains derived during the VDP period (20%).  This limitation is accomplished by multiplying the MTM loss by 20% and applying the result as a credit against the tax liability for the year.
     
  • Regular and Alternative Minimum Tax are both to be computed without the PFIC dispositions or MTM gains and losses.  The tax from the PFIC transactions (20% plus the 7% for 2003, if applicable) is added to (or subtracted from) the applicable total tax (either regular or AMT, whichever is higher).  The tax and interest (i.e., the 7% for the first year of the VDP) computed under the VDP alternative MTM can be added to the applicable total tax (either regular or AMT, whichever is higher) and placed on the amended return in the margin, with a supporting schedule.

  • Underpayment interest and penalties on the deficiency are computed in accordance with the Internal Revenue Code and the terms of the VDP.

  • For any PFIC investment retained beyond 12/31/2008, the taxpayer must continue using the MTM method, but will apply the normal statutory rules of section 1296 as well as the provisions of sections 1291-1298, as applicable.

Taxpayers should direct questions regarding PFICs and how the alternative resolution will affect their cases to the examiners assigned to their cases.  Before electing the alternative PFIC resolution, taxpayers with PFIC investments should consult their tax advisors to ensure that the issue is material in their cases and that the alternative is in fact preferable to the statutory computation in their situation.  If the taxpayer does not elect to use the alternative PFIC computation, then the PFIC provisions of section 1291-1298 apply. 

Page Last Reviewed or Updated: 09-Jan-2014

The Ez 1040 Form 2012

Ez 1040 form 2012 21. Ez 1040 form 2012   Medical and Dental Expenses Table of Contents What's New Introduction Useful Items - You may want to see: What Are Medical Expenses? What Expenses Can You Include This Year?Community property states. Ez 1040 form 2012 How Much of the Expenses Can You Deduct? Whose Medical Expenses Can You Include?Yourself Spouse Dependent Decedent What Medical Expenses Are Includible?Insurance Premiums Meals and Lodging Transportation Disabled Dependent Care Expenses How Do You Treat Reimbursements?Insurance Reimbursement Damages for Personal Injuries How Do You Figure and Report the Deduction on Your Tax Return?What Tax Form Do You Use? Impairment-Related Work Expenses Health Insurance Costs for Self-Employed Persons What's New Medical and dental expenses. Ez 1040 form 2012  Beginning January 1, 2013, you can deduct only the part of your medical and dental expenses that exceed 10% of your adjusted gross income (AGI) (7. Ez 1040 form 2012 5% if either you or your spouse is age 65 or older). Ez 1040 form 2012 Standard mileage rate. Ez 1040 form 2012  The standard mileage rate allowed for operating expenses for a car when you use it for medical reasons is 24 cents per mile. Ez 1040 form 2012 See Transportation under What Medical Expenses Are Includible. Ez 1040 form 2012 Introduction This chapter will help you determine the following. Ez 1040 form 2012 What medical expenses are. Ez 1040 form 2012 What expenses you can include this year. Ez 1040 form 2012 How much of the expenses you can deduct. Ez 1040 form 2012 Whose medical expenses you can include. Ez 1040 form 2012 What medical expenses are includible. Ez 1040 form 2012 How to treat reimbursements. Ez 1040 form 2012 How to report the deduction on your tax return. Ez 1040 form 2012 How to report impairment-related work expenses. Ez 1040 form 2012 How to report health insurance costs if you are self-employed. Ez 1040 form 2012 Useful Items - You may want to see: Publications 502 Medical and Dental Expenses 969 Health Savings Accounts and Other Tax-Favored Health Plans Form (and Instructions) Schedule A (Form 1040) Itemized Deductions 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. Ez 1040 form 2012 These expenses include payments for legal medical services rendered by physicians, surgeons, dentists, and other medical practitioners. Ez 1040 form 2012 They include the costs of equipment, supplies, and diagnostic devices needed for these purposes. Ez 1040 form 2012 Medical care expenses must be primarily to alleviate or prevent a physical or mental defect or illness. Ez 1040 form 2012 They do not include expenses that are merely beneficial to general health, such as vitamins or a vacation. Ez 1040 form 2012 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. Ez 1040 form 2012 Medical expenses also include amounts paid for qualified long-term care services and limited amounts paid for any qualified long-term care insurance contract. Ez 1040 form 2012 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. Ez 1040 form 2012 If you pay medical expenses by check, the day you mail or deliver the check generally is the date of payment. Ez 1040 form 2012 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. Ez 1040 form 2012 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. Ez 1040 form 2012 Separate returns. Ez 1040 form 2012   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. Ez 1040 form 2012 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. Ez 1040 form 2012 Community property states. Ez 1040 form 2012   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. Ez 1040 form 2012 Each of you should include half the expenses. Ez 1040 form 2012 If medical expenses are paid out of the separate funds of one individual, only the individual who paid the medical expenses can include them. Ez 1040 form 2012 If you live in a community property state, and are not filing a joint return, see Publication 555, Community Property. Ez 1040 form 2012 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 (7. Ez 1040 form 2012 5% of your AGI if either you or your spouse is age 65 or older)(Form 1040, line 38). Ez 1040 form 2012 Example. Ez 1040 form 2012 You are unmarried and under age 65 and your AGI is $40,000, 10% of which is $4,000. Ez 1040 form 2012 You paid medical expenses of $2,500. Ez 1040 form 2012 You cannot deduct any of your medical expenses because they are not more than 10% of your AGI. Ez 1040 form 2012 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. Ez 1040 form 2012 There are different rules for decedents and for individuals who are the subject of multiple support agreements. Ez 1040 form 2012 See Support claimed under a multiple support agreement , later. Ez 1040 form 2012 Yourself You can include medical expenses you paid for yourself. Ez 1040 form 2012 Spouse You can include medical expenses you paid for your spouse. Ez 1040 form 2012 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. Ez 1040 form 2012 Example 1. Ez 1040 form 2012 Mary received medical treatment before she married Bill. Ez 1040 form 2012 Bill paid for the treatment after they married. Ez 1040 form 2012 Bill can include these expenses in figuring his medical expense deduction even if Bill and Mary file separate returns. Ez 1040 form 2012 If Mary had paid the expenses, Bill could not include Mary's expenses in his separate return. Ez 1040 form 2012 Mary would include the amounts she paid during the year in her separate return. Ez 1040 form 2012 If they filed a joint return, the medical expenses both paid during the year would be used to figure their medical expense deduction. Ez 1040 form 2012 Example 2. Ez 1040 form 2012 This year, John paid medical expenses for his wife Louise, who died last year. Ez 1040 form 2012 John married Belle this year and they file a joint return. Ez 1040 form 2012 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. Ez 1040 form 2012 Dependent You can include medical expenses you paid for your dependent. Ez 1040 form 2012 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. Ez 1040 form 2012 A person generally qualifies as your dependent for purposes of the medical expense deduction if both of the following requirements are met. Ez 1040 form 2012 The person was a qualifying child (defined later) or a qualifying relative (defined later), and The person was a U. Ez 1040 form 2012 S. Ez 1040 form 2012 citizen or national, or a resident of the United States, Canada, or Mexico. Ez 1040 form 2012 If your qualifying child was adopted, see Exception for adopted child , next. Ez 1040 form 2012 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. Ez 1040 form 2012 Exception for adopted child. Ez 1040 form 2012   If you are a U. Ez 1040 form 2012 S. Ez 1040 form 2012 citizen or U. Ez 1040 form 2012 S. Ez 1040 form 2012 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. Ez 1040 form 2012 S. Ez 1040 form 2012 citizen or national or a resident of the United States, Canada, or Mexico. Ez 1040 form 2012 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, or, if he or she did, it was only to claim a refund. Ez 1040 form 2012 Adopted child. Ez 1040 form 2012   A legally adopted child is treated as your own child. Ez 1040 form 2012 This includes a child lawfully placed with you for legal adoption. Ez 1040 form 2012   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. Ez 1040 form 2012   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. Ez 1040 form 2012   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. Ez 1040 form 2012    You may be able to take an adoption credit for other expenses related to an adoption. Ez 1040 form 2012 See the Instructions for Form 8839, Qualified Adoption Expenses, for more information. Ez 1040 form 2012 Child of divorced or separated parents. Ez 1040 form 2012   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. Ez 1040 form 2012 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. Ez 1040 form 2012 This does not apply if the child's exemption is being claimed under a multiple support agreement (discussed later). Ez 1040 form 2012 Qualifying Relative A qualifying relative is a person: Who is your: Son, daughter, stepchild, 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 either 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 other person for 2013, and For whom you provided over half of the support in 2013. Ez 1040 form 2012 But see Child of divorced or separated parents , earlier, and Support claimed under a multiple support agreement, next. Ez 1040 form 2012 Support claimed under a multiple support agreement. Ez 1040 form 2012   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. Ez 1040 form 2012 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. Ez 1040 form 2012   Any medical expenses paid by others who joined you in the agreement cannot be included as medical expenses by anyone. Ez 1040 form 2012 However, you can include the entire unreimbursed amount you paid for medical expenses. Ez 1040 form 2012 Example. Ez 1040 form 2012 You and your three brothers each provide one-fourth of your mother's total support. Ez 1040 form 2012 Under a multiple support agreement, you treat your mother as your dependent. Ez 1040 form 2012 You paid all of her medical expenses. Ez 1040 form 2012 Your brothers reimbursed you for three-fourths of these expenses. Ez 1040 form 2012 In figuring your medical expense deduction, you can include only one-fourth of your mother's medical expenses. Ez 1040 form 2012 Your brothers cannot include any part of the expenses. Ez 1040 form 2012 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. Ez 1040 form 2012 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. Ez 1040 form 2012 This includes expenses for the decedent's spouse and dependents as well as for the decedent. Ez 1040 form 2012 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. Ez 1040 form 2012 The expenses must be paid within the 1-year period beginning with the day after the date of death. Ez 1040 form 2012 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. Ez 1040 form 2012 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. Ez 1040 form 2012 Amended returns and claims for refund are discussed in chapter 1. Ez 1040 form 2012 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. Ez 1040 form 2012 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. Ez 1040 form 2012 What Medical Expenses Are Includible? Use Table 21-1, later, as a guide to determine which medical and dental expenses you can include on Schedule A (Form 1040). Ez 1040 form 2012 This table does not include all possible medical expenses. Ez 1040 form 2012 To determine if an expense not listed can be included in figuring your medical expense deduction, see What Are Medical Expenses , earlier. Ez 1040 form 2012 Insurance Premiums You can include in medical expenses insurance premiums you pay for policies that cover medical care. Ez 1040 form 2012 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). Ez 1040 form 2012 See Qualified Long-Term Care Insurance Contracts in Publication 502. Ez 1040 form 2012 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. Ez 1040 form 2012 The cost of the medical part must be separately stated in the insurance contract or given to you in a separate statement. Ez 1040 form 2012 Note. Ez 1040 form 2012 When figuring the amount of insurance premiums you can include in medical expenses on Schedule A, do not include any health coverage tax credit advance payments shown in box 1 of Form 1099-H, Health Coverage Tax Credit (HCTC) Advance Payments. Ez 1040 form 2012 Also, do not include insurance premiums attributable to a nondependent child under age 27 if your premiums increased as a result of adding this child to your policy. Ez 1040 form 2012 Employer-sponsored health insurance plan. Ez 1040 form 2012   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 in box 1 of your Form W-2. Ez 1040 form 2012 Also, do not include any other medical and dental expenses paid by the plan unless the amount paid is included in box 1 of your Form W-2. Ez 1040 form 2012 Example. Ez 1040 form 2012 You are a federal employee participating in the premium conversion plan of the Federal Employee Health Benefits (FEHB) program. Ez 1040 form 2012 Your share of the FEHB premium is paid by making a pre-tax reduction in your salary. Ez 1040 form 2012 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. Ez 1040 form 2012 Long-term care services. Ez 1040 form 2012   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. Ez 1040 form 2012 This amount will be reported as wages in box 1 of your Form W-2. Ez 1040 form 2012 Health reimbursement arrangement (HRA). Ez 1040 form 2012   If you have medical expenses that are reimbursed by a health reimbursement arrangement, you cannot include those expenses in your medical expenses. Ez 1040 form 2012 This is because an HRA is funded solely by the employer. Ez 1040 form 2012 Retired public safety officers. Ez 1040 form 2012   If you are a retired public safety officer, do not include as medical expenses any health or long-term care premiums that you elected to have paid with tax-free distributions from your retirement plan. Ez 1040 form 2012 This applies only to distributions that would otherwise be included in income. Ez 1040 form 2012 Medicare A. Ez 1040 form 2012   If you are covered under social security (or if you are a government employee who paid Medicare tax), you are enrolled in Medicare A. Ez 1040 form 2012 The payroll tax paid for Medicare A is not a medical expense. Ez 1040 form 2012   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. Ez 1040 form 2012 In this situation you can include the premiums you paid for Medicare A as a medical expense. Ez 1040 form 2012 Medicare B. Ez 1040 form 2012   Medicare B is supplemental medical insurance. Ez 1040 form 2012 Premiums you pay for Medicare B are a medical expense. Ez 1040 form 2012 Check the information you received from the Social Security Administration to find out your premium. Ez 1040 form 2012 Medicare D. Ez 1040 form 2012    Medicare D is a voluntary prescription drug insurance program for persons with Medicare A or B. Ez 1040 form 2012 You can include as a medical expense premiums you pay for Medicare D. Ez 1040 form 2012 Prepaid insurance premiums. Ez 1040 form 2012   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). Ez 1040 form 2012 Unused sick leave used to pay premiums. Ez 1040 form 2012   You must include in gross income cash payments you receive at the time of retirement for unused sick leave. Ez 1040 form 2012 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. Ez 1040 form 2012 You can include this cost of continuing participation in the health plan as a medical expense. Ez 1040 form 2012   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. Ez 1040 form 2012 You cannot include this cost of continuing participation in that health plan as a medical expense. Ez 1040 form 2012 Table 21-1. Ez 1040 form 2012 Medical and Dental Expenses Checklist. Ez 1040 form 2012 See Publication 502 for more information about these and other expenses. Ez 1040 form 2012 You can include: You cannot include: Bandages Birth control pills prescribed by your doctor Body scan Braille books Breast pump and supplies Capital expenses for equipment or improvements to your home needed for medical care (see the worksheet in Publication 502) Diagnostic devices Expenses of an organ donor Eye surgery—to promote the correct function of the eye Fertility enhancement, certain procedures Guide dogs or other animals aiding the blind, deaf, and disabled Hospital services fees (lab work, therapy, nursing services, surgery, etc. Ez 1040 form 2012 ) Lead-based paint removal Legal abortion Legal operation to prevent having children such as a vasectomy or tubal ligation Long-term care contracts, qualified Meals and lodging provided by a hospital during medical treatment Medical services fees (from doctors, dentists, surgeons, specialists, and other medical practitioners) Medicare Part D premiums Medical and hospital insurance premiums Nursing services Oxygen equipment and oxygen Part of life-care fee paid to retirement home designated for medical care Physical examination Pregnancy test kit Prescription medicines (prescribed by a doctor) and insulin Psychiatric and psychological treatment Social security tax, Medicare tax, FUTA, and state employment tax for worker providing medical care (see Wages for nursing services, below) Special items (artificial limbs, false teeth, eye-glasses, contact lenses, hearing aids, crutches, wheelchair, etc. Ez 1040 form 2012 ) Special education for mentally or physically disabled persons Stop-smoking programs Transportation for needed medical care Treatment at a drug or alcohol center (includes meals and lodging provided by the center) Wages for nursing services Weight-loss, certain expenses for obesity Baby sitting and childcare Bottled water Contributions to Archer MSAs (see Publication 969) Diaper service Expenses for your general health (even if following your doctor's advice) such as— —Health club dues —Household help (even if recommended by a doctor) —Social activities, such as dancing or swimming lessons —Trip for general health improvement Flexible spending account reimbursements for medical expenses (if contributions were on a pre-tax basis) Funeral, burial, or cremation expenses Health savings account payments for medical expenses Illegal operation, treatment, or medicine Life insurance or income protection policies, or policies providing payment for loss of life, limb, sight, etc. Ez 1040 form 2012 Maternity clothes Medical insurance included in a car insurance policy covering all persons injured in or by your car Medicine you buy without a prescription Nursing care for a healthy baby Prescription drugs you brought in (or ordered shipped) from another country, in most cases Nutritional supplements, vitamins, herbal supplements, “natural medicines,” etc. Ez 1040 form 2012 , unless recommended by a medical practitioner as a treatment for a specific medical condition diagnosed by a physician Surgery for purely cosmetic reasons Toothpaste, toiletries, cosmetics, etc. Ez 1040 form 2012 Teeth whitening Weight-loss expenses not for the treatment of obesity or other disease Meals and 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 get medical care. Ez 1040 form 2012 See Nursing home , later. Ez 1040 form 2012 You may be able to include in medical expenses the cost of lodging not provided in a hospital or similar institution. Ez 1040 form 2012 You can include the cost of such lodging while away from home if all of the following requirements are met. Ez 1040 form 2012 The lodging is primarily for and essential to medical care. Ez 1040 form 2012 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. Ez 1040 form 2012 The lodging is not lavish or extravagant under the circumstances. Ez 1040 form 2012 There is no significant element of personal pleasure, recreation, or vacation in the travel away from home. Ez 1040 form 2012 The amount you include in medical expenses for lodging cannot be more than $50 for each night for each person. Ez 1040 form 2012 You can include lodging for a person traveling with the person receiving the medical care. Ez 1040 form 2012 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. Ez 1040 form 2012 Meals are not included. Ez 1040 form 2012 Nursing home. Ez 1040 form 2012   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. Ez 1040 form 2012 This includes the cost of meals and lodging in the home if a principal reason for being there is to get medical care. Ez 1040 form 2012   Do not include the cost of meals and lodging if the reason for being in the home is personal. Ez 1040 form 2012 You can, however, include in medical expenses the part of the cost that is for medical or nursing care. Ez 1040 form 2012 Transportation Include in medical expenses amounts paid for transportation primarily for, and essential to, medical care. Ez 1040 form 2012 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. Ez 1040 form 2012 Car expenses. Ez 1040 form 2012   You can include out-of-pocket expenses, such as the cost of gas and oil, when you use your car for medical reasons. Ez 1040 form 2012 You cannot include depreciation, insurance, general repair, or maintenance expenses. Ez 1040 form 2012   If you do not want to use your actual expenses for 2013, you can use the standard medical mileage rate of 24 cents per mile. Ez 1040 form 2012    You can also include parking fees and tolls. Ez 1040 form 2012 You can add these fees and tolls to your medical expenses whether you use actual expenses or use the standard mileage rate. Ez 1040 form 2012 Example. Ez 1040 form 2012 In 2013, Bill Jones drove 2,800 miles for medical reasons. Ez 1040 form 2012 He spent $500 for gas, $30 for oil, and $100 for tolls and parking. Ez 1040 form 2012 He wants to figure the amount he can include in medical expenses both ways to see which gives him the greater deduction. Ez 1040 form 2012 He figures the actual expenses first. Ez 1040 form 2012 He adds the $500 for gas, the $30 for oil, and the $100 for tolls and parking for a total of $630. Ez 1040 form 2012 He then figures the standard mileage amount. Ez 1040 form 2012 He multiplies 2,800 miles by 24 cents a mile for a total of $672. Ez 1040 form 2012 He then adds the $100 tolls and parking for a total of $772. Ez 1040 form 2012 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. Ez 1040 form 2012 Transportation expenses you cannot include. Ez 1040 form 2012   You cannot include in medical expenses the cost of transportation in the following situations. Ez 1040 form 2012 Going to and from work, even if your condition requires an unusual means of transportation. Ez 1040 form 2012 Travel for purely personal reasons to another city for an operation or other medical care. Ez 1040 form 2012 Travel that is merely for the general improvement of one's health. Ez 1040 form 2012 The costs of operating a specially equipped car for other than medical reasons. Ez 1040 form 2012 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. Ez 1040 form 2012 (See chapter 32 and Publication 503, Child and Dependent Care Expenses. Ez 1040 form 2012 ) 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. Ez 1040 form 2012 How Do You Treat Reimbursements? You can include in medical expenses only those amounts paid during the taxable year for which you received no insurance or other reimbursement. Ez 1040 form 2012 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. Ez 1040 form 2012 This includes payments from Medicare. Ez 1040 form 2012 Even if a policy provides reimbursement for only 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. Ez 1040 form 2012 Example. Ez 1040 form 2012 You have insurance policies that cover your hospital and doctors' bills but not your nursing bills. Ez 1040 form 2012 The insurance you receive for the hospital and doctors' bills is more than their charges. Ez 1040 form 2012 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. Ez 1040 form 2012 Health reimbursement arrangement (HRA). Ez 1040 form 2012   A health reimbursement arrangement is an employer-funded plan that reimburses employees for medical care expenses and allows unused amounts to be carried forward. Ez 1040 form 2012 An HRA is funded solely by the employer and the reimbursements for medical expenses, up to a maximum dollar amount for a coverage period, are not included in your income. Ez 1040 form 2012 Other reimbursements. Ez 1040 form 2012   Generally, you do not reduce medical expenses by payments you receive for: Permanent loss or loss of use of a member or function of the body (loss of limb, sight, hearing, etc. Ez 1040 form 2012 ) or disfigurement to the extent the payment is based on the nature of the injury without regard to the amount of time lost from work, or Loss of earnings. Ez 1040 form 2012   You must, however, reduce your medical expenses by any part of these payments that is designated for medical costs. Ez 1040 form 2012 See How Do You Figure and Report the Deduction on Your Tax Return , later. Ez 1040 form 2012   For how to treat damages received for personal injury or sickness, see Damages for Personal Injuries , later. Ez 1040 form 2012 You do not have a medical deduction if you are reimbursed for all of your medical expenses for the year. Ez 1040 form 2012 Excess reimbursement. Ez 1040 form 2012   If you are reimbursed more than your medical expenses, you may have to include the excess in income. Ez 1040 form 2012 You may want to use Figure 21-A to help you decide if any of your reimbursement is taxable. Ez 1040 form 2012 Premiums paid by you. Ez 1040 form 2012   If you pay either the entire premium for your medical insurance or all of the costs of a plan similar to medical insurance and your insurance payments or other reimbursements are more than your total medical expenses for the year, you have an excess reimbursement. Ez 1040 form 2012 Generally, you do not include the excess reimbursement in your gross income. Ez 1040 form 2012 Premiums paid by you and your employer. Ez 1040 form 2012   If both you and your employer contribute to your medical insurance plan and your employer's contributions are not included in your gross income, you must include in your gross income the part of your excess reimbursement that is from your employer's contribution. Ez 1040 form 2012   See Publication 502 to figure the amount of the excess reimbursement you must include in gross income. Ez 1040 form 2012 Reimbursement in a later year. Ez 1040 form 2012   If you are reimbursed in a later year for medical expenses you deducted in an earlier year, you generally must report the reimbursement as income up to the amount you previously deducted as medical expenses. Ez 1040 form 2012   However, do not report as income the amount of reimbursement you received up to the amount of your medical deductions that did not reduce your tax for the earlier year. Ez 1040 form 2012 For more information about the recovery of an amount that you claimed as an itemized deduction in an earlier year, see Itemized Deduction Recoveries in chapter 12. Ez 1040 form 2012 Figure 21-A. Ez 1040 form 2012 Is Your Excess Medical Reimbursement Taxable? Please click here for the text description of the image. Ez 1040 form 2012 Figure 21-A. Ez 1040 form 2012 Is Your Excess Medical Reimbursement Taxable? Medical expenses not deducted. Ez 1040 form 2012   If you did not deduct a medical expense in the year you paid it because your medical expenses were not more than 10% of your AGI (7. Ez 1040 form 2012 5% of your AGI if either you or your spouse was age 65 or older), or because you did not itemize deductions, do not include the reimbursement up to the amount of the expense in income. Ez 1040 form 2012 However, if the reimbursement is more than the expense, see Excess reimbursement , earlier. Ez 1040 form 2012 Example. Ez 1040 form 2012 For 2013, you were unmarried and under age 65 and you had medical expenses of $500. Ez 1040 form 2012 You cannot deduct the $500 because it is less than 10% of your AGI. Ez 1040 form 2012 If, in a later year, you are reimbursed for any of the $500 in medical expenses, you do not include the amount reimbursed in your gross income. Ez 1040 form 2012 Damages for Personal Injuries If you receive an amount in settlement of a personal injury suit, part of that award may be for medical expenses that you deducted in an earlier year. Ez 1040 form 2012 If it is, you must include that part in your income in the year you receive it to the extent it reduced your taxable income in the earlier year. Ez 1040 form 2012 See Reimbursement in a Later Year , discussed under How Do You Treat Reimbursements, earlier. Ez 1040 form 2012 Future medical expenses. Ez 1040 form 2012   If you receive an amount in settlement of a damage suit for personal injuries, part of that award may be for future medical expenses. Ez 1040 form 2012 If it is, you must reduce any future medical expenses for these injuries until the amount you received has been completely used. Ez 1040 form 2012 How Do You Figure and Report the Deduction on Your Tax Return? Once you have determined which medical expenses you can include, you figure and report the deduction on your tax return. Ez 1040 form 2012 What Tax Form Do You Use? You figure your medical expense deduction on Schedule A (Form 1040). Ez 1040 form 2012 You cannot claim medical expenses on Form 1040A or Form 1040EZ. Ez 1040 form 2012 If you need more information on itemized deductions or you are not sure if you can itemize, see chapter 20. Ez 1040 form 2012 Enter the amount you paid for medical and dental expenses on Schedule A (Form 1040). Ez 1040 form 2012 This should be your expenses that were not reimbursed by insurance or any other sources. Ez 1040 form 2012 Generally, you can deduct only the amount of your medical and dental expenses that is more than 10% of your AGI (7. Ez 1040 form 2012 5% if either you or your spouse was age 65 or older) shown on line 38, Form 1040. Ez 1040 form 2012 Impairment-Related Work Expenses If you are a person with a disability, you can take a business deduction for expenses that are necessary for you to be able to work. Ez 1040 form 2012 If you take a business deduction for impairment-related work expenses, do not take a medical deduction for the same expenses. Ez 1040 form 2012 You have a disability if you have: A physical or mental disability (for example, blindness or deafness) that functionally limits your being employed, or A physical or mental impairment (for example, a sight or hearing impairment) that substantially limits one or more of your major life activities, such as performing manual tasks, walking, speaking, breathing, learning, or working. Ez 1040 form 2012 Impairment-related expenses defined. Ez 1040 form 2012   Impairment-related expenses are those ordinary and necessary business expenses that are: Necessary for you to do your work satisfactorily, For goods and services not required or used, other than incidentally, in your personal activities, and Not specifically covered under other income tax laws. Ez 1040 form 2012 Where to report. Ez 1040 form 2012   If you are self-employed, deduct the business expenses on the appropriate form (Schedule C, C-EZ, E, or F) used to report your business income and expenses. Ez 1040 form 2012   If you are an employee, complete Form 2106, Employee Business Expenses, or Form 2106-EZ, Unreimbursed Employee Business Expenses. Ez 1040 form 2012 Enter on Schedule A (Form 1040), that part of the amount on Form 2106, or Form 2106-EZ, that is related to your impairment. Ez 1040 form 2012 Enter the amount that is unrelated to your impairment also on Schedule A (Form 1040). Ez 1040 form 2012 Your impairment-related work expenses are not subject to the 2%-of-adjusted-gross-income limit that applies to other employee business expenses. Ez 1040 form 2012 Example. Ez 1040 form 2012 You are blind. Ez 1040 form 2012 You must use a reader to do your work. Ez 1040 form 2012 You use the reader both during your regular working hours at your place of work and outside your regular working hours away from your place of work. Ez 1040 form 2012 The reader's services are only for your work. Ez 1040 form 2012 You can deduct your expenses for the reader as business expenses. Ez 1040 form 2012 Health Insurance Costs for Self-Employed Persons If you were self-employed and had a net profit for the year, you may be able to deduct, as an adjustment to income, amounts paid for medical and qualified long-term care insurance on behalf of yourself, your spouse, your dependents, and, your children who were under age 27 at the end of 2013. Ez 1040 form 2012 For this purpose, you were self-employed if you were a general partner (or a limited partner receiving guaranteed payments) or you received wages from an S corporation in which you were more than a 2% shareholder. Ez 1040 form 2012 The insurance plan must be established under your trade or business and the deduction cannot be more than your earned income from that trade or business. Ez 1040 form 2012 You cannot deduct payments for medical insurance for any month in which you were eligible to participate in a health plan subsidized by your employer, your spouse's employer, or, an employer of your dependent or your child under age 27 at the end of 2013. Ez 1040 form 2012 You cannot deduct payments for a qualified long-term care insurance contract for any month in which you were eligible to participate in a long-term care insurance plan subsidized by your employer or your spouse's employer. Ez 1040 form 2012 If you qualify to take the deduction, use the Self-Employed Health Insurance Deduction Worksheet in the Form 1040 instructions to figure the amount you can deduct. Ez 1040 form 2012 But if any of the following applies, do not use that worksheet. Ez 1040 form 2012 You had more than one source of income subject to self-employment tax. Ez 1040 form 2012 You file Form 2555, Foreign Earned Income, or Form 2555-EZ, Foreign Earned Income Exclusion. Ez 1040 form 2012 You are using amounts paid for qualified long-term care insurance to figure the deduction. Ez 1040 form 2012 If you cannot use the worksheet in the Form 1040 instructions, use the worksheet in Publication 535, Business Expenses, to figure your deduction. Ez 1040 form 2012 Note. Ez 1040 form 2012 When figuring the amount you can deduct for insurance premiums, do not include any advance payments shown on Form 1099-H, Health Coverage Tax Credit (HCTC) Advance Payments. Ez 1040 form 2012 If you are claiming the health coverage tax credit, subtract the amount shown on Form 8885, from the total insurance premiums you paid. Ez 1040 form 2012 Do not include amounts paid for health insurance coverage with retirement plan distributions that were tax-free because you are a retired public safety officer. Ez 1040 form 2012 Where to report. Ez 1040 form 2012    You take this deduction on Form 1040. Ez 1040 form 2012 If you itemize your deductions and do not claim 100% of your self-employed health insurance on Form 1040, you can generally include any remaining premiums with all other medical expenses on Schedule A (Form 1040), subject to the 10% limit (7. Ez 1040 form 2012 5% if either you or your spouse was age 65 or older). Ez 1040 form 2012 See Self-Employed Health Insurance Deduction in chapter 6 of Publication 535, Business Expenses, and Medical and Dental Expenses in the Instructions for Schedule A (Form 1040), for more information. 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