File your Taxes for Free!
  • Get your maximum refund*
  • 100% accurate calculations guaranteed*

TurboTax Federal Free Edition - File Taxes Online

Don't let filing your taxes get you down! We'll help make it as easy as possible. With e-file and direct deposit, there's no faster way to get your refund!

Approved TurboTax Affiliate Site. TurboTax and TurboTax Online, among others, are registered trademarks and/or service marks of Intuit Inc. in the United States and other countries. Other parties' trademarks or service marks are the property of the respective owners.


© 2012 - 2018 All rights reserved.

This is an Approved TurboTax Affiliate site. TurboTax and TurboTax Online, among other are registered trademarks and/or service marks of Intuit, Inc. in the United States and other countries. Other parties' trademarks or service marks are the property of the respective owners.
When discussing "Free e-file", note that state e-file is an additional fee. E-file fees do not apply to New York state returns. Prices are subject to change without notice. E-file and get your refund faster
*If you pay an IRS or state penalty or interest because of a TurboTax calculations error, we'll pay you the penalty and interest.
*Maximum Refund Guarantee - or Your Money Back: If you get a larger refund or smaller tax due from another tax preparation method, we'll refund the applicable TurboTax federal and/or state purchase price paid. TurboTax Federal Free Edition customers are entitled to payment of $14.99 and a refund of your state purchase price paid. Claims must be submitted within sixty (60) days of your TurboTax filing date and no later than 6/15/14. E-file, Audit Defense, Professional Review, Refund Transfer and technical support fees are excluded. This guarantee cannot be combined with the TurboTax Satisfaction (Easy) Guarantee. *We're so confident your return will be done right, we guarantee it. Accurate calculations guaranteed. If you pay an IRS or state penalty or interest because of a TurboTax calculations error, we'll pay you the penalty and interest.
https://turbotax.intuit.com/corp/guarantees.jsp

File Taxes Online Free

Federal Income Tax Forms 1040ezIrs 1040ez Online File2010 Irs 1040ez Form2009 Tax Forms 1040ezHow To File An Amended Federal Tax ReturnEz Tax Form1040x 2009How To File 2012 Tax Return OnlineIrs 1040xFile State And Federal Taxes Free2012 Amended Tax FormFree 2011 Tax Software DownloadHow To File 1040ez OnlineTax Amendment Form 2013Free Tax Preparation SitesHow To File 1040xFile Tax ReturnState 1040 Ez FormMilitary Tax FormH And R Block Free TaxesWww Irs Gov EfileIrs TaxTax Return For StudentsFile 1040xHow Much To Do Back Taxes With Hr BlockWww Irs Gov FormspubsWhat Forms Do I Need To File An Amended Tax ReturnCan You Do State Taxes For FreeWww Myfreetaxes Com SpringfieldmoFile 2006 TaxesForm 1040ez Booklet1040ez2013 State Tax FormsHow To File 2012 Taxes In 2014UsafFree 1040ez Instructions2007 Tax SoftwareAmending Tax Return Online2010 Form 1040nrTurbo Tax 1040ez

File Taxes Online Free

File taxes online free Other Methods of Depreciation Table of Contents Topics - This chapter discusses: Useful Items - You may want to see: How To Figure the DeductionBasis Useful Life Salvage Value Methods To UseStraight Line Method Declining Balance Method Income Forecast Method How To Change Methods DispositionsSale or exchange. File taxes online free Property not disposed of or abandoned. File taxes online free Special rule for normal retirements from item accounts. File taxes online free Abandoned property. File taxes online free Single item accounts. File taxes online free Multiple property account. File taxes online free Topics - This chapter discusses: How to figure the deduction Methods to use How to change methods Dispositions Useful Items - You may want to see: Publication 544 Sales and Other Dispositions of Assets 551 Basis of Assets 583 Starting a Business and Keeping Records 946 How To Depreciate Property Form (and Instructions) 3115 Application for Change in Accounting Method 4562 Depreciation and Amortization Schedule C (Form 1040) Profit or Loss From Business If your property is being depreciated under ACRS, you must continue to use rules for depreciation that applied when you placed the property in service. File taxes online free If your property qualified for MACRS, you must depreciate it under MACRS. File taxes online free See Publication 946. File taxes online free However, you cannot use MACRS for certain property because of special rules that exclude it from MACRS. File taxes online free Also, you can elect to exclude certain property from being depreciated under MACRS. File taxes online free Property that you cannot depreciate using MACRS includes: Intangible property, Property you can elect to exclude from MACRS that you properly depreciate under a method that is not based on a term of years, Certain public utility property, Any motion picture film or video tape, Any sound recording, and Certain real and personal property placed in service before 1987. File taxes online free Intangible property. File taxes online free   You cannot depreciate intangible property under ACRS or MACRS. File taxes online free You depreciate intangible property using any other reasonable method, usually, the straight line method. File taxes online free Note. File taxes online free The cost of certain intangible property that you acquire after August 10, 1993, must be amortized over a 15-year period. File taxes online free For more information, see chapter 12 of Publication 535. File taxes online free Public utility property. File taxes online free   The law excludes from MACRS any public utility property for which the taxpayer does not use a normalization method of accounting. File taxes online free This type of property is subject to depreciation under a special rule. File taxes online free Videocassettes. File taxes online free   If you are in the videocassette rental business, you can depreciate those videocassettes purchased for rental. File taxes online free You can depreciate the cost less salvage value of those videocassettes that have a useful life over one year using either: The straight line method, or The income forecast method. File taxes online free The straight line method, salvage value, and useful life are discussed later under Methods To Use. File taxes online free You can deduct in the year of purchase as a business expense the cost of any cassette that has a useful life of one year or less. File taxes online free How To Figure the Deduction Two other reasonable methods can be used to figure your deduction for property not covered under ACRS or MACRS. File taxes online free These methods are straight line and declining balance. File taxes online free To figure depreciation using these methods, you must generally determine three things about the property you intend to depreciate. File taxes online free They are: The basis, The useful life, and The estimated salvage value at the end of its useful life. File taxes online free The amount of the deduction in any year also depends on which method of depreciation you choose. File taxes online free Basis To deduct the proper amount of depreciation each year, first determine your basis in the property you intend to depreciate. File taxes online free The basis used for figuring depreciation is the same as the basis that would be used for figuring the gain on a sale. File taxes online free Your original basis is usually the purchase price. File taxes online free However, if you acquire property in some other way, such as inheriting it, getting it as a gift, or building it yourself, you have to figure your original basis in a different way. File taxes online free Adjusted basis. File taxes online free   Events will often change the basis of property. File taxes online free When this occurs, the changed basis is called the adjusted basis. File taxes online free Some events, such as improvements you make, increase basis. File taxes online free Events such as deducting casualty losses and depreciation decrease basis. File taxes online free If basis is adjusted, the depreciation deduction may also have to be changed, depending on the reason for the adjustment and the method of depreciation you are using. File taxes online free   Publication 551 explains how to figure basis for property acquired in different ways. File taxes online free It also discusses what items increase and decrease basis, how to figure adjusted basis, and how to allocate cost if you buy several pieces of property at one time. File taxes online free Useful Life The useful life of a piece of property is an estimate of how long you can expect to use it in your trade or business, or to produce income. File taxes online free It is the length of time over which you will make yearly depreciation deductions of your basis in the property. File taxes online free It is how long it will continue to be useful to you, not how long the property will last. File taxes online free Many things affect the useful life of property, such as: Frequency of use, Age when acquired, Your repair policy, and Environmental conditions. File taxes online free The useful life can also be affected by technological improvements, progress in the arts, reasonably foreseeable economic changes, shifting of business centers, prohibitory laws, and other causes. File taxes online free Consider all these factors before you arrive at a useful life for your property. File taxes online free The useful life of the same type of property varies from user to user. File taxes online free When you determine the useful life of your property, keep in mind your own experience with similar property. File taxes online free You can use the general experience of the industry you are in until you are able to determine a useful life of your property from your own experience. File taxes online free Change in useful life. File taxes online free   You base your estimate of useful life on certain facts. File taxes online free If these facts change significantly, you can adjust your estimate of the remaining useful life. File taxes online free However, you redetermine the estimated useful life only when the change is substantial and there is a clear reason for making the change. File taxes online free Salvage Value It is important for you to accurately determine the correct salvage value of the property you want to depreciate. File taxes online free You generally cannot depreciate property below a reasonable salvage value. File taxes online free Determining salvage value. File taxes online free   Salvage value is the estimated value of property at the end of its useful life. File taxes online free It is what you expect to get for the property if you sell it after you can no longer use it productively. File taxes online free You must estimate the salvage value of a piece of property when you first acquire it. File taxes online free   Salvage value is affected both by how you use the property and how long you use it. File taxes online free If it is your policy to dispose of property that is still in good operating condition, the salvage value can be relatively large. File taxes online free However, if your policy is to use property until it is no longer usable, its salvage value can be its junk value. File taxes online free Changing salvage value. File taxes online free   Once you determine the salvage value for property, you should not change it merely because prices have changed. File taxes online free However, if you redetermine the useful life of property, as discussed earlier under Change in useful life, you can also redetermine the salvage value. File taxes online free When you redetermine the salvage value, take into account the facts that exist at the time. File taxes online free Net salvage. File taxes online free   Net salvage is the salvage value of property minus what it costs to remove it when you dispose of it. File taxes online free You can choose either salvage value or net salvage when you figure depreciation. File taxes online free You must consistently use the one you choose and the treatment of the costs of removal must be consistent with the practice adopted. File taxes online free However, if the cost to remove the property is more than the estimated salvage value, then net salvage is zero. File taxes online free Your salvage value can never be less than zero. File taxes online free Ten percent rule. File taxes online free   If you acquire personal property that has a useful life of 3 years or more, you can use an amount for salvage value that is less than your actual estimate. File taxes online free You can subtract from your estimate of salvage value an amount equal to 10% of your basis in the property. File taxes online free If salvage value is less than 10% of basis, you can ignore salvage value when you figure depreciation. File taxes online free Methods To Use Two methods of depreciation are the straight line and declining balance methods. File taxes online free If ACRS or MACRS does not apply, you can use one of these methods. File taxes online free The straight line and declining balance methods discussed in this section are not figured in the same way as straight line or declining balance methods under MACRS. File taxes online free Straight Line Method Before 1981, you could use any reasonable method for every kind of depreciable property. File taxes online free One of these methods was the straight line method. File taxes online free This method was also used for intangible property. File taxes online free It lets you deduct the same amount of depreciation each year. File taxes online free To figure your deduction, determine the adjusted basis of your property, its salvage value, and its estimated useful life. File taxes online free Subtract the salvage value, if any, from the adjusted basis. File taxes online free The balance is the total amount of depreciation you can take over the useful life of the property. File taxes online free Divide the balance by the number of years remaining in the useful life. File taxes online free This gives you the amount of your yearly depreciation deduction. File taxes online free Unless there is a big change in adjusted basis, or useful life, this amount will stay the same throughout the time you depreciate the property. File taxes online free If, in the first year, you use the property for less than a full year, you must prorate your depreciation deduction for the number of months in use. File taxes online free Example. File taxes online free In April 1994, Frank bought a franchise for $5,600. File taxes online free It expires in 10 years. File taxes online free This property is intangible property that cannot be depreciated under MACRS. File taxes online free Frank depreciates the franchise under the straight line method, using a 10-year useful life and no salvage value. File taxes online free He takes the $5,600 basis and divides that amount by 10 years ($5,600 ÷ 10 = $560, a full year's use). File taxes online free He must prorate the $560 for his 9 months of use in 1994. File taxes online free This gives him a deduction of $420 ($560 ÷ 9/12). File taxes online free In 1995, Frank can deduct $560 for the full year. File taxes online free Declining Balance Method The declining balance method allows you to recover a larger amount of the cost of the property in the early years of your use of the property. File taxes online free The rate cannot be more than twice the straight line rate. File taxes online free Rate of depreciation. File taxes online free   Under this method, you must determine your declining balance rate of depreciation. File taxes online free The initial step is to: Divide the number 1 by the useful life of your property to get a straight line rate. File taxes online free (For example, if property has a useful life of 5 years, its normal straight line rate of depreciation is ⅕, or 20%. File taxes online free ) Multiply this straight line rate by a number that is more than 1 but not more than 2 to determine the declining balance rate. File taxes online free Unless there is a change in the useful life during the time you depreciate the property, the rate of depreciation generally will not change. File taxes online free Depreciation deductions. File taxes online free   After you determine the rate of depreciation, multiply the adjusted basis of the property by it. File taxes online free This gives you the amount of your deduction. File taxes online free For example, if your adjusted basis at the beginning of the first year is $10,000, and your declining balance rate is 20%, your depreciation deduction for the first year is $2,000 ($10,000 ÷ 20%). File taxes online free To figure your depreciation deduction in the second year, you must first adjust the basis for the amount of depreciation you deducted in the first year. File taxes online free Subtract the previous year's depreciation from your basis ($10,000 - $2,000 = $8,000). File taxes online free Multiply this amount by the rate of depreciation ($8,000 ÷ 20% = $1,600). File taxes online free Your depreciation deduction for the second year is $1,600. File taxes online free   As you can see from this example, your adjusted basis in the property gets smaller each year. File taxes online free Also, under this method, deductions are larger in the earlier years and smaller in the later years. File taxes online free You can make a change to the straight line method without consent. File taxes online free Salvage value. File taxes online free   Do not subtract salvage value when you figure your yearly depreciation deductions under the declining balance method. File taxes online free However, you cannot depreciate the property below its reasonable salvage value. File taxes online free Determine salvage value using the rules discussed earlier, including the special 10% rule. File taxes online free Example. File taxes online free If your adjusted basis has been decreased to $1,000 and the rate of depreciation is 20%, your depreciation deduction should be $200. File taxes online free But if your estimate of salvage value was $900, you can only deduct $100. File taxes online free This is because $100 is the amount that would lower your adjusted basis to equal salvage value. File taxes online free Income Forecast Method The income forecast method requires income projections for each videocassette or group of videocassettes. File taxes online free You can group the videocassettes by title for making this projection. File taxes online free You determine the depreciation by applying a fraction to the cost less salvage value of the cassette. File taxes online free The numerator is the income from the videocassette for the tax year and the denominator is the total projected income for the cassette. File taxes online free For more information on the income forecast method, see Revenue Ruling 60-358 in Cumulative Bulletin 1960, Volume 2, on page 68. File taxes online free How To Change Methods In some cases, you may change your method of depreciation for property depreciated under a reasonable method. File taxes online free If you change your method of depreciation, it is generally a change in your method of accounting. File taxes online free You must get IRS consent before making the change. File taxes online free However, you do not need permission for certain changes in your method of depreciation. File taxes online free The rules discussed in this section do not apply to property depreciated under ACRS or MACRS. File taxes online free For information on ACRS elections,see Revocation of election, in chapter 1 under Alternate ACRS Method. File taxes online free Change to the straight line method. File taxes online free   You can change from the declining balance method to the straight line method at any time during the useful life of your property without IRS consent. File taxes online free However, if you have a written agreement with the IRS that prohibits a change, you must first get IRS permission. File taxes online free When the change is made, figure depreciation based on your adjusted basis in the property at that time. File taxes online free Your adjusted basis takes into account all previous depreciation deductions. File taxes online free Use the estimated remaining useful life of your property at the time of change and its estimated salvage value. File taxes online free   You can change from the declining balance method to straight line only on the original tax return for the year you first use the straight line method. File taxes online free You cannot make the change on an amended return filed after the due date of the original return (including extensions). File taxes online free   When you make the change, attach a statement to your tax return showing: When you acquired the property, Its original cost or other original basis, The total amount claimed for depreciation and other allowances since you acquired it, Its salvage value and remaining useful life, and A description of the property and its use. File taxes online free   After you change to straight line, you cannot change back to the declining balance method or to any other method for a period of 10 years without written permission from the IRS. File taxes online free Changes that require permission. File taxes online free   For most other changes in method of depreciation, you must get permission from the IRS. File taxes online free To request a change in method of depreciation, file Form 3115. File taxes online free File the application within the first 180 days of the tax year the change is to become effective. File taxes online free In most cases, there is a user fee that must accompany Form 3115. File taxes online free See the instructions for Form 3115 to determine if a fee is required. File taxes online free Changes granted automatically. File taxes online free   The IRS automatically approves certain changes of a method of depreciation. File taxes online free But, you must file Form 3115 for these automatic changes. File taxes online free   However, IRS can deny permission if Form 3115 is not filed on time. File taxes online free For more information on automatic changes, see Revenue Procedure 74-11, 1974-1 C. File taxes online free B. File taxes online free 420. File taxes online free Changes for which approval is not automatic. File taxes online free   The automatic change procedures do not apply to: Property or an account where you made a change in depreciation within the last 10 tax years (unless the change was made under the Class Life System), Class Life Asset Depreciation Range System, and Public utility property. File taxes online free   You must request and receive permission for these changes. File taxes online free To make the request, file Form 3115 during the first 180 days of the tax year for which you want the change to be effective. File taxes online free Change from an improper method. File taxes online free   If the IRS disallows the method you are using, you do not need permission to change to a proper method. File taxes online free You can adopt the straight line method, or any other method that would have been permitted if you had used it from the beginning. File taxes online free If you file your tax return using an improper method, but later file an amended return, you can use a proper method on the amended return without getting IRS permission. File taxes online free However, you must file the amended return before the filing date for the next tax year. File taxes online free Dispositions Retirement is the permanent withdrawal of depreciable property from use in your trade or business or for the production of income. File taxes online free You can do this by selling, exchanging, or abandoning the item of property. File taxes online free You can also withdraw it from use without disposing of it. File taxes online free For example, you could place it in a supplies or scrap account. File taxes online free Retirements can be either normal or abnormal depending on all facts and circumstances. File taxes online free The rules discussed next do not apply to MACRS and ACRS property. File taxes online free Normal retirement. File taxes online free   A normal retirement is a permanent withdrawal of depreciable property from use if the following apply: The retirement is made within the useful life you estimated originally, and The property has reached a condition at which you customarily retire or would retire similar property from use. File taxes online free A retirement is generally considered normal unless you can show that you retired the property because of a reason you did not consider when you originally estimated the useful life of the property. File taxes online free Abnormal retirement. File taxes online free   A retirement can be abnormal if you withdraw the property early or under other circumstances. File taxes online free For example, if the property is damaged by a fire or suddenly becomes obsolete and is now useless. File taxes online free Gain or loss on retirement. File taxes online free   There are special rules for figuring the gain or loss on retirement of property. File taxes online free The gain or loss will depend on several factors. File taxes online free These include the type of withdrawal, if the withdrawal was from a single property or multiple property account, and if the retirement was normal or abnormal. File taxes online free A single property account contains only one item of property. File taxes online free A multiple property account is one in which several items have been combined with a single rate of depreciation assigned to the entire account. File taxes online free Sale or exchange. File taxes online free   If property is retired by sale or exchange, you figure gain or loss by the usual rules that apply to sales or other dispositions of property. File taxes online free See Publication 544. File taxes online free Property not disposed of or abandoned. File taxes online free   If property is retired permanently, but not disposed of or physically abandoned, you do not recognize gain. File taxes online free You are allowed a loss in such a case, but only if the retirement is: An abnormal retirement, A normal retirement from a single property account in which you determined the life of each item of property separately, or A normal retirement from a multiple property account in which the depreciation rate is based on the maximum expected life of the longest lived item of property and the loss occurs before the expiration of the full useful life. File taxes online free However, you are not allowed a loss if the depreciation rate is based on the average useful life of the items of property in the account. File taxes online free   To figure your loss, subtract the estimated salvage or fair market value of the property at the date of retirement, whichever is more, from its adjusted basis. File taxes online free Special rule for normal retirements from item accounts. File taxes online free   You can generally deduct losses upon retirement of a few depreciable items of property with similar useful lives, if: You account for each one in a separate account, and You use the average useful life to figure depreciation. File taxes online free However, you cannot deduct losses if you use the average useful life to figure depreciation and they have a wide range of useful lives. File taxes online free   If you have a large number of depreciable property items and use average useful lives to figure depreciation, you cannot deduct the losses upon normal retirements from these accounts. File taxes online free Abandoned property. File taxes online free   If you physically abandon property, you can deduct as a loss the adjusted basis of the property at the time of its abandonment. File taxes online free However, your intent must be to discard the property so that you will not use it again or retrieve it for sale, exchange, or other disposition. File taxes online free Basis of property retired. File taxes online free   The basis for figuring gain or loss on the retirement of property is its adjusted basis at the time of retirement, as determined in the following discussions. File taxes online free Single item accounts. File taxes online free   If an item of property is accounted for in a single item account, the adjusted basis is the basis you would use to figure gain or loss for a sale or exchange of the property. File taxes online free This is generally the cost or other basis of the item of property less depreciation. File taxes online free See Publication 551. File taxes online free Multiple property account. File taxes online free   For a normal retirement from a multiple property account, if you figured depreciation using the average expected useful life, the adjusted basis is the salvage value estimated for the item of property when it was originally acquired. File taxes online free If you figured depreciation using the maximum expected useful life of the longest lived item of property in the account, you must use the depreciation method used for the multiple property account and a rate based on the maximum expected useful life of the item of property retired. File taxes online free   You make the adjustment for depreciation for an abnormal retirement from a multiple property account at the rate that would be proper if the item of property was depreciated in a single property account. File taxes online free The method of depreciation used for the multiple property account is used. File taxes online free You base the rate on either the average expected useful life or the maximum expected useful life of the retired item of property, depending on the method used to determine the depreciation rate for the multiple property account. File taxes online free Prev  Up  Next   Home   More Online Publications
Español

National Runaway Switchboard (NRS)

The mission of the National Runaway Switchboard (NRS) is to help keep America? runaway and at-risk youth safe and off the streets. The organization serves as the federally designated national communication system for runaway and homeless youth.

Contact the Agency or Department

Website: National Runaway Switchboard (NRS)

E-mail:

Address: 3080 N. Lincoln Ave.
Chicago, IL 60657

Phone Number: 773-880-9860

Toll-free: 1-800-786-2929 (24 hrs./7 days a week)

The File Taxes Online Free

File taxes online free 21. File taxes online free   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. File taxes online free 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. File taxes online free  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. File taxes online free 5% if either you or your spouse is age 65 or older). File taxes online free Standard mileage rate. File taxes online free  The standard mileage rate allowed for operating expenses for a car when you use it for medical reasons is 24 cents per mile. File taxes online free See Transportation under What Medical Expenses Are Includible. File taxes online free Introduction This chapter will help you determine the following. File taxes online free What medical expenses are. File taxes online free What expenses you can include this year. File taxes online free How much of the expenses you can deduct. File taxes online free Whose medical expenses you can include. File taxes online free What medical expenses are includible. File taxes online free How to treat reimbursements. File taxes online free How to report the deduction on your tax return. File taxes online free How to report impairment-related work expenses. File taxes online free How to report health insurance costs if you are self-employed. File taxes online free 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. File taxes online free These expenses include payments for legal medical services rendered by physicians, surgeons, dentists, and other medical practitioners. File taxes online free They include the costs of equipment, supplies, and diagnostic devices needed for these purposes. File taxes online free Medical care expenses must be primarily to alleviate or prevent a physical or mental defect or illness. File taxes online free They do not include expenses that are merely beneficial to general health, such as vitamins or a vacation. File taxes online 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. File taxes online 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. File taxes online 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. File taxes online free If you pay medical expenses by check, the day you mail or deliver the check generally is the date of payment. File taxes online 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. File taxes online 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. File taxes online free Separate returns. File taxes online 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. File taxes online 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. File taxes online free Community property states. File taxes online 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. File taxes online free Each of you should include half the expenses. File taxes online 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. File taxes online free If you live in a community property state, and are not filing a joint return, see Publication 555, Community Property. File taxes online 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 (7. File taxes online free 5% of your AGI if either you or your spouse is age 65 or older)(Form 1040, line 38). File taxes online free Example. File taxes online free You are unmarried and under age 65 and your AGI is $40,000, 10% of which is $4,000. File taxes online free You paid medical expenses of $2,500. File taxes online free You cannot deduct any of your medical expenses because they are not more than 10% of your AGI. File taxes online 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. File taxes online free There are different rules for decedents and for individuals who are the subject of multiple support agreements. File taxes online free See Support claimed under a multiple support agreement , later. File taxes online free Yourself You can include medical expenses you paid for yourself. File taxes online free Spouse You can include medical expenses you paid for your spouse. File taxes online 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. File taxes online free Example 1. File taxes online free Mary received medical treatment before she married Bill. File taxes online free Bill paid for the treatment after they married. File taxes online free Bill can include these expenses in figuring his medical expense deduction even if Bill and Mary file separate returns. File taxes online free If Mary had paid the expenses, Bill could not include Mary's expenses in his separate return. File taxes online free Mary would include the amounts she paid during the year in her separate return. File taxes online free If they filed a joint return, the medical expenses both paid during the year would be used to figure their medical expense deduction. File taxes online free Example 2. File taxes online free This year, John paid medical expenses for his wife Louise, who died last year. File taxes online free John married Belle this year and they file a joint return. File taxes online 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. File taxes online free Dependent You can include medical expenses you paid for your dependent. File taxes online 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. File taxes online free A person generally qualifies as your dependent for purposes of the medical expense deduction if both of the following requirements are met. File taxes online free The person was a qualifying child (defined later) or a qualifying relative (defined later), and The person was a U. File taxes online free S. File taxes online free citizen or national, or a resident of the United States, Canada, or Mexico. File taxes online free If your qualifying child was adopted, see Exception for adopted child , next. File taxes online 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. File taxes online free Exception for adopted child. File taxes online free   If you are a U. File taxes online free S. File taxes online free citizen or U. File taxes online free S. File taxes online free 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. File taxes online free S. File taxes online free citizen or national or a resident of the United States, Canada, or Mexico. File taxes online 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, or, if he or she did, it was only to claim a refund. File taxes online free Adopted child. File taxes online free   A legally adopted child is treated as your own child. File taxes online free This includes a child lawfully placed with you for legal adoption. File taxes online 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. File taxes online 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. File taxes online 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. File taxes online free    You may be able to take an adoption credit for other expenses related to an adoption. File taxes online free See the Instructions for Form 8839, Qualified Adoption Expenses, for more information. File taxes online free Child of divorced or separated parents. File taxes online 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. File taxes online 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. File taxes online free This does not apply if the child's exemption is being claimed under a multiple support agreement (discussed later). File taxes online free 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. File taxes online free But see Child of divorced or separated parents , earlier, and Support claimed under a multiple support agreement, next. File taxes online free Support claimed under a multiple support agreement. File taxes online 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. File taxes online 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. File taxes online free   Any medical expenses paid by others who joined you in the agreement cannot be included as medical expenses by anyone. File taxes online free However, you can include the entire unreimbursed amount you paid for medical expenses. File taxes online free Example. File taxes online free You and your three brothers each provide one-fourth of your mother's total support. File taxes online free Under a multiple support agreement, you treat your mother as your dependent. File taxes online free You paid all of her medical expenses. File taxes online free Your brothers reimbursed you for three-fourths of these expenses. File taxes online free In figuring your medical expense deduction, you can include only one-fourth of your mother's medical expenses. File taxes online free Your brothers cannot include any part of the expenses. File taxes online 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. File taxes online 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. File taxes online free This includes expenses for the decedent's spouse and dependents as well as for the decedent. File taxes online 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. File taxes online free The expenses must be paid within the 1-year period beginning with the day after the date of death. File taxes online 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. File taxes online 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. File taxes online free Amended returns and claims for refund are discussed in chapter 1. File taxes online 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. File taxes online 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. File taxes online free 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). File taxes online free This table does not include all possible medical expenses. File taxes online free To determine if an expense not listed can be included in figuring your medical expense deduction, see What Are Medical Expenses , earlier. File taxes online free Insurance Premiums You can include in medical expenses insurance premiums you pay for policies that cover medical care. File taxes online 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). File taxes online free See Qualified Long-Term Care Insurance Contracts in Publication 502. File taxes online 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. File taxes online free The cost of the medical part must be separately stated in the insurance contract or given to you in a separate statement. File taxes online free Note. File taxes online free 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. File taxes online free 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. File taxes online free Employer-sponsored health insurance plan. File taxes online free   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. File taxes online free 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. File taxes online free Example. File taxes online free You are a federal employee participating in the premium conversion plan of the Federal Employee Health Benefits (FEHB) program. File taxes online free Your share of the FEHB premium is paid by making a pre-tax reduction in your salary. File taxes online 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. File taxes online free Long-term care services. File taxes online 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. File taxes online free This amount will be reported as wages in box 1 of your Form W-2. File taxes online free Health reimbursement arrangement (HRA). File taxes online free   If you have medical expenses that are reimbursed by a health reimbursement arrangement, you cannot include those expenses in your medical expenses. File taxes online free This is because an HRA is funded solely by the employer. File taxes online free Retired public safety officers. File taxes online free   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. File taxes online free This applies only to distributions that would otherwise be included in income. File taxes online free Medicare A. File taxes online free   If you are covered under social security (or if you are a government employee who paid Medicare tax), you are enrolled in Medicare A. File taxes online free The payroll tax paid for Medicare A is not a medical expense. File taxes online 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. File taxes online free In this situation you can include the premiums you paid for Medicare A as a medical expense. File taxes online free Medicare B. File taxes online free   Medicare B is supplemental medical insurance. File taxes online free Premiums you pay for Medicare B are a medical expense. File taxes online free Check the information you received from the Social Security Administration to find out your premium. File taxes online free Medicare D. File taxes online free    Medicare D is a voluntary prescription drug insurance program for persons with Medicare A or B. File taxes online free You can include as a medical expense premiums you pay for Medicare D. File taxes online free Prepaid insurance premiums. File taxes online free   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). File taxes online free Unused sick leave used to pay premiums. File taxes online free   You must include in gross income cash payments you receive at the time of retirement for unused sick leave. File taxes online 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. File taxes online free You can include this cost of continuing participation in the health plan as a medical expense. File taxes online 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. File taxes online free You cannot include this cost of continuing participation in that health plan as a medical expense. File taxes online free Table 21-1. File taxes online free Medical and Dental Expenses Checklist. File taxes online free See Publication 502 for more information about these and other expenses. File taxes online free 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. File taxes online free ) 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. File taxes online free ) 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. File taxes online free 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. File taxes online free , 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. File taxes online free 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. File taxes online free See Nursing home , later. File taxes online free You may be able to include in medical expenses the cost of lodging not provided in a hospital or similar institution. File taxes online free You can include the cost of such lodging while away from home if all of the following requirements are met. File taxes online free The lodging is primarily for and essential to medical care. File taxes online 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. File taxes online free The lodging is not lavish or extravagant under the circumstances. File taxes online free There is no significant element of personal pleasure, recreation, or vacation in the travel away from home. File taxes online free The amount you include in medical expenses for lodging cannot be more than $50 for each night for each person. File taxes online free You can include lodging for a person traveling with the person receiving the medical care. File taxes online 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. File taxes online free Meals are not included. File taxes online free Nursing home. File taxes online free   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. File taxes online free This includes the cost of meals and lodging in the home if a principal reason for being there is to get medical care. File taxes online free   Do not include the cost of meals and lodging if the reason for being in the home is personal. File taxes online free You can, however, include in medical expenses the part of the cost that is for medical or nursing care. File taxes online free Transportation Include in medical expenses amounts paid for transportation primarily for, and essential to, medical care. File taxes online 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. File taxes online free Car expenses. File taxes online free   You can include out-of-pocket expenses, such as the cost of gas and oil, when you use your car for medical reasons. File taxes online free You cannot include depreciation, insurance, general repair, or maintenance expenses. File taxes online free   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. File taxes online free    You can also include parking fees and tolls. File taxes online free You can add these fees and tolls to your medical expenses whether you use actual expenses or use the standard mileage rate. File taxes online free Example. File taxes online free In 2013, Bill Jones drove 2,800 miles for medical reasons. File taxes online free He spent $500 for gas, $30 for oil, and $100 for tolls and parking. File taxes online free He wants to figure the amount he can include in medical expenses both ways to see which gives him the greater deduction. File taxes online free He figures the actual expenses first. File taxes online free He adds the $500 for gas, the $30 for oil, and the $100 for tolls and parking for a total of $630. File taxes online free He then figures the standard mileage amount. File taxes online free He multiplies 2,800 miles by 24 cents a mile for a total of $672. File taxes online free He then adds the $100 tolls and parking for a total of $772. File taxes online 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. File taxes online free Transportation expenses you cannot include. File taxes online free   You cannot include in medical expenses the cost of transportation in the following situations. File taxes online free Going to and from work, even if your condition requires an unusual means of transportation. File taxes online free Travel for purely personal reasons to another city for an operation or other medical care. File taxes online free Travel that is merely for the general improvement of one's health. File taxes online free The costs of operating a specially equipped car for other than medical reasons. File taxes online 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. File taxes online free (See chapter 32 and Publication 503, Child and Dependent Care Expenses. File taxes online 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. File taxes online free 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. File taxes online 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. File taxes online free This includes payments from Medicare. File taxes online free 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. File taxes online free Example. File taxes online free You have insurance policies that cover your hospital and doctors' bills but not your nursing bills. File taxes online free The insurance you receive for the hospital and doctors' bills is more than their charges. File taxes online 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. File taxes online free Health reimbursement arrangement (HRA). File taxes online free   A health reimbursement arrangement is an employer-funded plan that reimburses employees for medical care expenses and allows unused amounts to be carried forward. File taxes online free 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. File taxes online free Other reimbursements. File taxes online free   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. File taxes online free ) 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. File taxes online free   You must, however, reduce your medical expenses by any part of these payments that is designated for medical costs. File taxes online free See How Do You Figure and Report the Deduction on Your Tax Return , later. File taxes online free   For how to treat damages received for personal injury or sickness, see Damages for Personal Injuries , later. File taxes online free You do not have a medical deduction if you are reimbursed for all of your medical expenses for the year. File taxes online free Excess reimbursement. File taxes online free   If you are reimbursed more than your medical expenses, you may have to include the excess in income. File taxes online free You may want to use Figure 21-A to help you decide if any of your reimbursement is taxable. File taxes online free Premiums paid by you. File taxes online free   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. File taxes online free Generally, you do not include the excess reimbursement in your gross income. File taxes online free Premiums paid by you and your employer. File taxes online free   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. File taxes online free   See Publication 502 to figure the amount of the excess reimbursement you must include in gross income. File taxes online free Reimbursement in a later year. File taxes online free   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. File taxes online free   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. File taxes online free 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. File taxes online free Figure 21-A. File taxes online free Is Your Excess Medical Reimbursement Taxable? Please click here for the text description of the image. File taxes online free Figure 21-A. File taxes online free Is Your Excess Medical Reimbursement Taxable? Medical expenses not deducted. File taxes online free   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. File taxes online free 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. File taxes online free However, if the reimbursement is more than the expense, see Excess reimbursement , earlier. File taxes online free Example. File taxes online free For 2013, you were unmarried and under age 65 and you had medical expenses of $500. File taxes online free You cannot deduct the $500 because it is less than 10% of your AGI. File taxes online free 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. File taxes online free 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. File taxes online free 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. File taxes online free See Reimbursement in a Later Year , discussed under How Do You Treat Reimbursements, earlier. File taxes online free Future medical expenses. File taxes online free   If you receive an amount in settlement of a damage suit for personal injuries, part of that award may be for future medical expenses. File taxes online free If it is, you must reduce any future medical expenses for these injuries until the amount you received has been completely used. File taxes online free 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. File taxes online free What Tax Form Do You Use? You figure your medical expense deduction on Schedule A (Form 1040). File taxes online free You cannot claim medical expenses on Form 1040A or Form 1040EZ. File taxes online free If you need more information on itemized deductions or you are not sure if you can itemize, see chapter 20. File taxes online free Enter the amount you paid for medical and dental expenses on Schedule A (Form 1040). File taxes online free This should be your expenses that were not reimbursed by insurance or any other sources. File taxes online free Generally, you can deduct only the amount of your medical and dental expenses that is more than 10% of your AGI (7. File taxes online free 5% if either you or your spouse was age 65 or older) shown on line 38, Form 1040. File taxes online free 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. File taxes online free If you take a business deduction for impairment-related work expenses, do not take a medical deduction for the same expenses. File taxes online free 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. File taxes online free Impairment-related expenses defined. File taxes online free   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. File taxes online free Where to report. File taxes online free   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. File taxes online free   If you are an employee, complete Form 2106, Employee Business Expenses, or Form 2106-EZ, Unreimbursed Employee Business Expenses. File taxes online free Enter on Schedule A (Form 1040), that part of the amount on Form 2106, or Form 2106-EZ, that is related to your impairment. File taxes online free Enter the amount that is unrelated to your impairment also on Schedule A (Form 1040). File taxes online free Your impairment-related work expenses are not subject to the 2%-of-adjusted-gross-income limit that applies to other employee business expenses. File taxes online free Example. File taxes online free You are blind. File taxes online free You must use a reader to do your work. File taxes online free 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. File taxes online free The reader's services are only for your work. File taxes online free You can deduct your expenses for the reader as business expenses. File taxes online free 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. File taxes online free 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. File taxes online free 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. File taxes online free 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. File taxes online free 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. File taxes online free 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. File taxes online free But if any of the following applies, do not use that worksheet. File taxes online free You had more than one source of income subject to self-employment tax. File taxes online free You file Form 2555, Foreign Earned Income, or Form 2555-EZ, Foreign Earned Income Exclusion. File taxes online free You are using amounts paid for qualified long-term care insurance to figure the deduction. File taxes online free If you cannot use the worksheet in the Form 1040 instructions, use the worksheet in Publication 535, Business Expenses, to figure your deduction. File taxes online free Note. File taxes online free 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. File taxes online free If you are claiming the health coverage tax credit, subtract the amount shown on Form 8885, from the total insurance premiums you paid. File taxes online free 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. File taxes online free Where to report. File taxes online free    You take this deduction on Form 1040. File taxes online free 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. File taxes online free 5% if either you or your spouse was age 65 or older). File taxes online free 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. File taxes online free Prev  Up  Next   Home   More Online Publications