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Filing 2012 Tax Return Late

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Filing 2012 Tax Return Late

Filing 2012 tax return late Publication 80 - Introductory Material Table of Contents Future Developments What's New Reminders Calendar Future Developments For the latest information about developments related to Publication 80 (Circular SS), such as legislation enacted after it was published, go to www. Filing 2012 tax return late irs. Filing 2012 tax return late gov/pub80. Filing 2012 tax return late What's New Social security and Medicare tax for 2014. Filing 2012 tax return late  The social security tax rate is 6. Filing 2012 tax return late 2% each for the employee and employer, unchanged from 2013. Filing 2012 tax return late The social security wage base limit is $117,000. Filing 2012 tax return late The Medicare tax rate is 1. Filing 2012 tax return late 45% each for the employee and employer, unchanged from 2013. Filing 2012 tax return late There is no wage base limit for Medicare tax. Filing 2012 tax return late Social security and Medicare taxes apply to the wages of household workers you pay $1,900 or more in cash or an equivalent form of compensation. Filing 2012 tax return late Social security and Medicare taxes apply to election workers who are paid $1,600 or more in cash or an equivalent form of compensation. Filing 2012 tax return late Change of responsible party. Filing 2012 tax return late . Filing 2012 tax return late  Beginning January 1, 2014, any entity with an employer identification number (EIN) must file Form 8822-B, Change of Address or Responsible Party—Business, to report the latest change to its responsible party. Filing 2012 tax return late Form 8822-B must be filed within 60 days of the change. Filing 2012 tax return late If the change in the identity of your responsible party occurred before 2014, and you have not previously notified the IRS of the change, file Form 8822-B before March 1, 2014, reporting only the most recent change. Filing 2012 tax return late For a definition of “responsible party”, see the Form 8822-B instructions. Filing 2012 tax return late Same-sex marriage. Filing 2012 tax return late  For federal tax purposes, individuals of the same sex are considered married if they were lawfully married in a state (or foreign country) whose laws authorize the marriage of two individuals of the same sex, even if the state (or foreign country) in which they now live does not recognize same-sex marriage. Filing 2012 tax return late For more information, see Revenue Ruling 2013-17, 2013-38 I. Filing 2012 tax return late R. Filing 2012 tax return late B. Filing 2012 tax return late 201, available at www. Filing 2012 tax return late irs. Filing 2012 tax return late gov/irb/2013-38_IRB/ar07. Filing 2012 tax return late html. Filing 2012 tax return late Notice 2013-61 provides special administrative procedures for employers to make claims for refund or adjustments of overpayments of social security and Medicare taxes with respect to certain same-sex spouse benefits before expiration of the period of limitations. Filing 2012 tax return late Notice 2013-61, 2013-44 I. Filing 2012 tax return late R. Filing 2012 tax return late B. Filing 2012 tax return late 432, is available at www. Filing 2012 tax return late irs. Filing 2012 tax return late gov/irb/2013-44_IRB/ar10. Filing 2012 tax return late html. Filing 2012 tax return late Reminders Additional Medicare Tax withholding. Filing 2012 tax return late  In addition to withholding Medicare tax at 1. Filing 2012 tax return late 45%, you must withhold a 0. Filing 2012 tax return late 9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. Filing 2012 tax return late You are required to begin withholding Additional Medicare Tax in the pay period in which you pay wages in excess of $200,000 to an employee and continue to withhold it each pay period until the end of the calendar year. Filing 2012 tax return late Additional Medicare Tax is only imposed on the employee. Filing 2012 tax return late There is no employer share of Additional Medicare Tax. Filing 2012 tax return late All wages that are subject to Medicare tax are subject to Additional Medicare Tax withholding if paid in excess of the $200,000 withholding threshold. Filing 2012 tax return late For more information on what wages are subject to Medicare tax, see the chart, Special Rules for Various Types of Employment and Payments , in section 12. Filing 2012 tax return late For more information on Additional Medicare Tax, visit IRS. Filing 2012 tax return late gov and enter “Additional Medicare Tax” in the search box. Filing 2012 tax return late Work opportunity tax credit for qualified tax-exempt organizations hiring qualified veterans. Filing 2012 tax return late  The work opportunity tax credit is available for eligible unemployed veterans who begin work on or after November 22, 2011, and before January 1, 2014. Filing 2012 tax return late Qualified tax-exempt organizations that hire eligible unemployed veterans can claim the work opportunity tax credit against their payroll tax liability using Form 5884-C, Work Opportunity Credit for Qualified Tax-Exempt Organizations Hiring Qualified Veterans. Filing 2012 tax return late For more information, visit IRS. Filing 2012 tax return late gov and enter “work opportunity tax credit” in the search box. Filing 2012 tax return late Outsourcing payroll duties. Filing 2012 tax return late  Employers are responsible to ensure that tax returns are filed and deposits and payments are made, even if the employer contracts with a third party to perform these acts. Filing 2012 tax return late The employer remains responsible if the third party fails to perform any required action. Filing 2012 tax return late If you choose to outsource any of your payroll and related tax duties (that is, withholding, reporting, and paying over social security, Medicare, FUTA, and income taxes) to a third-party payer such as a payroll service provider or reporting agent, visit IRS. Filing 2012 tax return late gov and enter “outsourcing payroll duties” in the search box for helpful information on this topic. Filing 2012 tax return late Residents of the Philippines working in the Commonwealth of the Northern Mariana Islands (CNMI). Filing 2012 tax return late  The IRS will not assert that an employer has understated liability for social security and Medicare taxes because they failed to treat services performed before January 1, 2015, in the CNMI by a resident of the Philippines as employment as defined under Internal Revenue Code section 3121(b). Filing 2012 tax return late For more information, see Announcement 2012-43, 2012-51 I. Filing 2012 tax return late R. Filing 2012 tax return late B. Filing 2012 tax return late 723, available at www. Filing 2012 tax return late irs. Filing 2012 tax return late gov/irb/2012-51_IRB/ar15. Filing 2012 tax return late html. Filing 2012 tax return late CNMI government employees now subject to social security and Medicare taxes. Filing 2012 tax return late  Beginning in the fourth calendar quarter of 2012, CNMI government employees are subject to social security and Medicare taxes. Filing 2012 tax return late COBRA premium assistance credit. Filing 2012 tax return late  The credit for COBRA premium assistance payments applies to premiums paid for employees involuntarily terminated between September 1, 2008 and May 31, 2010, and to premiums paid for up to 15 months. Filing 2012 tax return late See COBRA premium assistance credit in Publication 15 (Circular E), Employer's Tax Guide. Filing 2012 tax return late You can get Publication 15 (Circular E) at IRS. Filing 2012 tax return late gov. Filing 2012 tax return late You must receive written notice from the IRS to file Form 944. Filing 2012 tax return late  If you have been filing Forms 941-SS and believe your employment taxes for the calendar year will be $1,000 or less, and you would like to file Form 944, Employer's ANNUAL Federal Tax Return, instead of Forms 941-SS, you must contact the IRS to request to file Form 944. Filing 2012 tax return late You must receive written notice from the IRS to file Form 944 instead of Forms 941-SS before you may file this form. Filing 2012 tax return late For more information on requesting to file Form 944 visit IRS. Filing 2012 tax return late gov and enter “file employment taxes annually” in the search box. Filing 2012 tax return late Federal employers in the CNMI. Filing 2012 tax return late  The U. Filing 2012 tax return late S. Filing 2012 tax return late Treasury Department and the CNMI Division of Revenue and Taxation entered into an agreement under 5 USC 5517 in December 2006. Filing 2012 tax return late Under this agreement, all federal employers (including the Department of Defense) are required to withhold CNMI income taxes (rather than federal income taxes) and deposit the CNMI taxes with the CNMI Treasury for employees who are subject to CNMI taxes and whose regular place of federal employment is in the CNMI. Filing 2012 tax return late Federal employers are also required to file quarterly and annual reports with the CNMI Division of Revenue and Taxation. Filing 2012 tax return late For questions, contact the CNMI Division of Revenue and Taxation. Filing 2012 tax return late Change of address. Filing 2012 tax return late  Use Form 8822-B to notify the IRS of an address change. Filing 2012 tax return late Do not mail Form 8822-B with your employment tax return. Filing 2012 tax return late Federal tax deposits must be made by electronic funds transfer. Filing 2012 tax return late  You must use electronic funds transfer to make all federal tax deposits. Filing 2012 tax return late Generally, electronic fund transfers are made using the Electronic Federal Tax Payment System (EFTPS). Filing 2012 tax return late If you do not want to use EFTPS, you can arrange for your tax professional, financial institution, payroll service, or other trusted third party to make electronic deposits on your behalf. Filing 2012 tax return late Also, you may arrange for your financial institution to initiate a same-day wire payment on your behalf. Filing 2012 tax return late EFTPS is a free service provided by the Department of Treasury. Filing 2012 tax return late Services provided by your tax professional, financial institution, payroll service, or other third party may have a fee. Filing 2012 tax return late For more information on making federal tax deposits, see How To Deposit in section 8. Filing 2012 tax return late For more information about EFTPS or to enroll in EFTPS, visit the EFTPS website at www. Filing 2012 tax return late eftps. Filing 2012 tax return late gov or call 1-800-555-4477 (U. Filing 2012 tax return late S. Filing 2012 tax return late Virgin Islands only) or 303-967-5916 (toll call) or 1-800-733-4829 (TDD). Filing 2012 tax return late Additional information about EFTPS is also available in Publication 966, Electronic Federal Tax Payment System: A Guide To Getting Started. Filing 2012 tax return late Electronic filing and payment. Filing 2012 tax return late  Using electronic options can make filing a return and paying your federal tax easier. Filing 2012 tax return late Use the Electronic Federal Tax Payment System (EFTPS) to make deposits or pay in full, whether you rely on a tax professional or prepare your own taxes. Filing 2012 tax return late You can use IRS e-file to file certain returns. Filing 2012 tax return late If there is a balance due on the return, you can e-file and e-pay in a single step by authorizing an electronic funds withdrawal (EFW) from your bank account while e-filing. Filing 2012 tax return late Do not use EFW to pay taxes that are required to be deposited. Filing 2012 tax return late Visit the IRS website at www. Filing 2012 tax return late irs. Filing 2012 tax return late gov/efile for more information on filing electronically. Filing 2012 tax return late For more information on paying your taxes using EFW, visit the IRS website at www. Filing 2012 tax return late irs. Filing 2012 tax return late gov/e-pay. Filing 2012 tax return late A fee may be charged to file electronically. Filing 2012 tax return late For EFTPS, visit www. Filing 2012 tax return late eftps. Filing 2012 tax return late gov or call EFTPS Customer Service at 1-800-555-4477 (U. Filing 2012 tax return late S. Filing 2012 tax return late Virgin Islands only) or 303-967-5916 (toll call). Filing 2012 tax return late For electronic filing of Forms W-2AS, W-2CM, W-2GU, W-2VI, Wage and Tax Statements; W-3SS, Transmittal of Wage and Tax Statements; and W-2c, Corrected Wage and Tax Statement, visit www. Filing 2012 tax return late socialsecurity. Filing 2012 tax return late gov/employer. Filing 2012 tax return late If you are filing your tax return or paying your federal taxes electronically, a valid EIN is required. Filing 2012 tax return late If a valid EIN is not provided, the return or payment will not be processed. Filing 2012 tax return late This may result in penalties and delays in processing your return or payment. Filing 2012 tax return late Electronic option for filing Forms W-2AS, W-2CM, W-2GU, or W-2VI. Filing 2012 tax return late  Employers in American Samoa, the CNMI, Guam, and the U. Filing 2012 tax return late S. Filing 2012 tax return late Virgin Islands can now use the Social Security Administration's W-2 Online service to create, save, print, and submit up to 50 Forms W-2AS, W-2CM, W-2GU, or W-2VI at a time over the Internet. Filing 2012 tax return late Form W-3SS will be generated automatically based on your Forms W-2AS, W-2CM, W-2GU, or W-2VI. Filing 2012 tax return late For more information, visit Social Security Administration's SSA website at www. Filing 2012 tax return late ssa. Filing 2012 tax return late gov/bso/bsowelcome. Filing 2012 tax return late htm. Filing 2012 tax return late Credit or debit card payments. Filing 2012 tax return late  For information on paying your taxes with a credit or debit card, visit the IRS website at www. Filing 2012 tax return late irs. Filing 2012 tax return late gov/e-pay. Filing 2012 tax return late However, do not use credit or debit cards to make federal tax deposits. Filing 2012 tax return late Hiring new employees. Filing 2012 tax return late  Record the number and name from each new employee's social security card. Filing 2012 tax return late An employee who does not have a social security card should apply for one on Form SS-5, Application for a Social Security Card. Filing 2012 tax return late See section 3. Filing 2012 tax return late Reporting discrepancies between Forms 941-SS (or Form 944) and Forms W-2. Filing 2012 tax return late  File Schedule D (Form 941), Report of Discrepancies Caused by Acquisitions, Statutory Mergers, or Consolidations, to explain certain wage, tax, and payment discrepancies between Forms 941-SS (or Form 944), and Forms W-2 that were caused by acquisitions, statutory mergers, or consolidations. Filing 2012 tax return late For more information, see the Instructions for Schedule D (Form 941). Filing 2012 tax return late Apply for an employer identification number (EIN) online. Filing 2012 tax return late  You can apply for an EIN online by visiting IRS. Filing 2012 tax return late gov and clicking on the Apply for an EIN Online link under Tools. Filing 2012 tax return late Dishonored payments. Filing 2012 tax return late  Any form of payment that is dishonored and returned from a financial institution is subject to a penalty. Filing 2012 tax return late The penalty is $25 or 2% of the payment, whichever is more. Filing 2012 tax return late However, the penalty on dishonored payments of $24. Filing 2012 tax return late 99 or less is an amount equal to the payment. Filing 2012 tax return late For example, a dishonored payment of $18 is charged a penalty of $18. Filing 2012 tax return late Private delivery services. Filing 2012 tax return late  You can use certain private delivery services designated by the IRS to send tax returns or payments. Filing 2012 tax return late The list includes only the following: DHL Express (DHL): DHL Same Day Service. Filing 2012 tax return late Federal Express (FedEx): FedEx Priority Overnight, FedEx Standard Overnight, FedEx 2Day, FedEx International Priority, and FedEx International First. Filing 2012 tax return late United Parcel Service (UPS): UPS Next Day Air, UPS Next Day Air Saver, UPS 2nd Day Air, UPS 2nd Day Air A. Filing 2012 tax return late M. Filing 2012 tax return late , UPS Worldwide Express Plus, and UPS Worldwide Express. Filing 2012 tax return late For the IRS mailing address to use if you are using a private delivery service, go to IRS. Filing 2012 tax return late gov and enter “private delivery service” in the search box. Filing 2012 tax return late Your private delivery service can tell you how to get written proof of the mailing date. Filing 2012 tax return late Private delivery services cannot deliver items to P. Filing 2012 tax return late O. Filing 2012 tax return late boxes. Filing 2012 tax return late You must use the U. Filing 2012 tax return late S. Filing 2012 tax return late Postal Service to mail any item to an IRS P. Filing 2012 tax return late O. Filing 2012 tax return late box address. Filing 2012 tax return late Recordkeeping. Filing 2012 tax return late  Keep all records of employment taxes for 4 years. Filing 2012 tax return late These should be available for IRS review. Filing 2012 tax return late There is no required format for such records, but they should include your EIN; the amounts and dates of all wage payments (including fringe benefits) and tips reported; the names, addresses, and occupations of employees receiving such payments and their social security numbers; copies of returns filed; dates of employment; and the dates and amounts of deposits made. Filing 2012 tax return late Farm employers must keep a record of the name, permanent address, and EIN of each crew leader. Filing 2012 tax return late See Farm Crew Leaders in section 2. Filing 2012 tax return late Disregarded entities and qualified subchapter S subsidiaries (QSubs). Filing 2012 tax return late  Eligible single-owner disregarded entities and QSubs are treated as separate entities for employment tax purposes. Filing 2012 tax return late Eligible single-member entities that have not elected to be taxed as corporations must report and pay employment taxes on wages paid to their employees using the entities' own names and EINs. Filing 2012 tax return late See Regulations sections 1. Filing 2012 tax return late 1361-4(a)(7) and 301. Filing 2012 tax return late 7701-2(c)(2)(iv). Filing 2012 tax return late Photographs of missing children. Filing 2012 tax return late  The IRS is a proud partner with the National Center for Missing and Exploited Children. Filing 2012 tax return late Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. Filing 2012 tax return late You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. Filing 2012 tax return late Calendar   If any date for filing a return, furnishing a form, or depositing taxes falls on a Saturday, Sunday, or legal holiday, the due date is the next business day. Filing 2012 tax return late A statewide legal holiday delays a filing due date only if the IRS office where you are required to file is located in that state. Filing 2012 tax return late However, a statewide legal holiday does not delay the due date of federal tax deposits. Filing 2012 tax return late See Deposits on Business Days Only in section 8. Filing 2012 tax return late For any filing due date, you will meet the “file” or “furnish” requirement if the envelope containing the return or form is properly addressed, contains sufficient postage, and is postmarked by the U. Filing 2012 tax return late S. Filing 2012 tax return late Postal Service on or before the due date, or sent by an IRS-designated delivery service on or before the due date. Filing 2012 tax return late See Private delivery services under Reminders. Filing 2012 tax return late The following are important dates and responsibilities. Filing 2012 tax return late Also see Publication 509, Tax Calendars. Filing 2012 tax return late By January 31. Filing 2012 tax return late   Furnish wage and tax statements to employees. Filing 2012 tax return late Give each employee a completed Form W-2AS, W-2CM, W-2GU, or W-2VI. Filing 2012 tax return late See section 10 for more information. Filing 2012 tax return late File Form 943, Employer's Annual Federal Tax Return for Agricultural Employees, with the IRS. Filing 2012 tax return late If you deposited all Form 943 taxes when due, you have 10 additional calendar days to file. Filing 2012 tax return late U. Filing 2012 tax return late S. Filing 2012 tax return late Virgin Islands employers only must file Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return, with the IRS. Filing 2012 tax return late Pay or deposit (if more than $500) any balance of the tax due. Filing 2012 tax return late If you deposited the full amount of taxes when due, you have 10 additional calendar days to file. Filing 2012 tax return late File Form 944 with the IRS if you were notified by the IRS to file Form 944 instead of quarterly Forms 941-SS. Filing 2012 tax return late If you deposited the full amount of taxes when due, you have 10 additional calendar days to file. Filing 2012 tax return late By February 28. Filing 2012 tax return late  File paper wage and tax statements with the Social Security Administration (SSA). Filing 2012 tax return late File Copy A of Forms W-2AS, W-2CM, W-2GU, or W-2VI, and Form W-3SS with the Social Security Administration (SSA). Filing 2012 tax return late For electronically filed returns, see By March 31 next. Filing 2012 tax return late By March 31. Filing 2012 tax return late  File electronic Forms W-2AS, W-2CM, W-2GU, or W-2VI with the SSA. Filing 2012 tax return late Visit the SSA's Reporting Instructions & Information webpage at www. Filing 2012 tax return late socialsecurity. Filing 2012 tax return late gov/employer for more information. Filing 2012 tax return late By April 30, July 31, October 31, and January 31. Filing 2012 tax return late  File Form 941-SS with the IRS. Filing 2012 tax return late If you deposited the full amount of taxes when due, you have 10 additional calendar days to file. Filing 2012 tax return late Do not file Forms 941-SS for these quarters if you have been notified to file Form 944 and you did not request to file quarterly Forms 941-SS. Filing 2012 tax return late Deposit FUTA tax for the quarter (including any amount carried over from other quarters) if over $500. Filing 2012 tax return late If $500 or less, carry it over to the next quarter. Filing 2012 tax return late See section 11 for more information. Filing 2012 tax return late Prev  Up  Next   Home   More Online Publications
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LT 18 (Letter 1615) Frequently Asked Questions (FAQs)

What is the notice telling me?

We do not have a record of receiving federal income tax returns for the years indicated in the letter.

What do I have to do?

File the returns or contact us to discuss the matter. If you are a wage earner, we usually can provide you with your income and withholding information if you do not have the necessary records to complete your returns. In addition, as allowed under Internal Revenue Code Section 6020B, we will prepare your employment, excise, or partnership returns based on available information such as the last returns you filed. We will figure your tax and send you a bill for that tax, plus interest and penalty charges. This won't be to your advantage.

How much time do I have?

Contact us as soon as possible, but no later than 10 days after the date on the letter.

What happens if I don't file?

We may file the return for you. As allowed under Internal Revenue Code Section 6020B, we will prepare your employment, excise, or partnership returns based on available information such as the last returns you filed. We will figure your tax and send you a bill for that tax, plus interest and penalty charges. This won't be to your advantage.

Who should I contact?

Contact us at the phone number shown in the letter; the person answering will be able to assist you.

What if I don't agree or have already taken corrective action?

If you do not agree with this notice, call us immediately at the number printed at the top of the notice. We will do our best to help you. If you called us about this matter before, but we did not correct the problem, you may want to contact the Office of the Taxpayer Advocate.

If you have already filed the requested return(s), you should still call us at the number printed at the top of the notice to make sure your account reflects this. We may ask you to resubmit the return with an original signature.

Page Last Reviewed or Updated: 30-Jan-2014

The Filing 2012 Tax Return Late

Filing 2012 tax return late 21. Filing 2012 tax return late   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. Filing 2012 tax return late 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. Filing 2012 tax return late  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. Filing 2012 tax return late 5% if either you or your spouse is age 65 or older). Filing 2012 tax return late Standard mileage rate. Filing 2012 tax return late  The standard mileage rate allowed for operating expenses for a car when you use it for medical reasons is 24 cents per mile. Filing 2012 tax return late See Transportation under What Medical Expenses Are Includible. Filing 2012 tax return late Introduction This chapter will help you determine the following. Filing 2012 tax return late What medical expenses are. Filing 2012 tax return late What expenses you can include this year. Filing 2012 tax return late How much of the expenses you can deduct. Filing 2012 tax return late Whose medical expenses you can include. Filing 2012 tax return late What medical expenses are includible. Filing 2012 tax return late How to treat reimbursements. Filing 2012 tax return late How to report the deduction on your tax return. Filing 2012 tax return late How to report impairment-related work expenses. Filing 2012 tax return late How to report health insurance costs if you are self-employed. Filing 2012 tax return late 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. Filing 2012 tax return late These expenses include payments for legal medical services rendered by physicians, surgeons, dentists, and other medical practitioners. Filing 2012 tax return late They include the costs of equipment, supplies, and diagnostic devices needed for these purposes. Filing 2012 tax return late Medical care expenses must be primarily to alleviate or prevent a physical or mental defect or illness. Filing 2012 tax return late They do not include expenses that are merely beneficial to general health, such as vitamins or a vacation. Filing 2012 tax return late 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. Filing 2012 tax return late Medical expenses also include amounts paid for qualified long-term care services and limited amounts paid for any qualified long-term care insurance contract. Filing 2012 tax return late 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. Filing 2012 tax return late If you pay medical expenses by check, the day you mail or deliver the check generally is the date of payment. Filing 2012 tax return late 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. Filing 2012 tax return late 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. Filing 2012 tax return late Separate returns. Filing 2012 tax return late   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. Filing 2012 tax return late 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. Filing 2012 tax return late Community property states. Filing 2012 tax return late   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. Filing 2012 tax return late Each of you should include half the expenses. Filing 2012 tax return late If medical expenses are paid out of the separate funds of one individual, only the individual who paid the medical expenses can include them. Filing 2012 tax return late If you live in a community property state, and are not filing a joint return, see Publication 555, Community Property. Filing 2012 tax return late 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. Filing 2012 tax return late 5% of your AGI if either you or your spouse is age 65 or older)(Form 1040, line 38). Filing 2012 tax return late Example. Filing 2012 tax return late You are unmarried and under age 65 and your AGI is $40,000, 10% of which is $4,000. Filing 2012 tax return late You paid medical expenses of $2,500. Filing 2012 tax return late You cannot deduct any of your medical expenses because they are not more than 10% of your AGI. Filing 2012 tax return late 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. Filing 2012 tax return late There are different rules for decedents and for individuals who are the subject of multiple support agreements. Filing 2012 tax return late See Support claimed under a multiple support agreement , later. Filing 2012 tax return late Yourself You can include medical expenses you paid for yourself. Filing 2012 tax return late Spouse You can include medical expenses you paid for your spouse. Filing 2012 tax return late 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. Filing 2012 tax return late Example 1. Filing 2012 tax return late Mary received medical treatment before she married Bill. Filing 2012 tax return late Bill paid for the treatment after they married. Filing 2012 tax return late Bill can include these expenses in figuring his medical expense deduction even if Bill and Mary file separate returns. Filing 2012 tax return late If Mary had paid the expenses, Bill could not include Mary's expenses in his separate return. Filing 2012 tax return late Mary would include the amounts she paid during the year in her separate return. Filing 2012 tax return late If they filed a joint return, the medical expenses both paid during the year would be used to figure their medical expense deduction. Filing 2012 tax return late Example 2. Filing 2012 tax return late This year, John paid medical expenses for his wife Louise, who died last year. Filing 2012 tax return late John married Belle this year and they file a joint return. Filing 2012 tax return late 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. Filing 2012 tax return late Dependent You can include medical expenses you paid for your dependent. Filing 2012 tax return late 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. Filing 2012 tax return late A person generally qualifies as your dependent for purposes of the medical expense deduction if both of the following requirements are met. Filing 2012 tax return late The person was a qualifying child (defined later) or a qualifying relative (defined later), and The person was a U. Filing 2012 tax return late S. Filing 2012 tax return late citizen or national, or a resident of the United States, Canada, or Mexico. Filing 2012 tax return late If your qualifying child was adopted, see Exception for adopted child , next. Filing 2012 tax return late 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. Filing 2012 tax return late Exception for adopted child. Filing 2012 tax return late   If you are a U. Filing 2012 tax return late S. Filing 2012 tax return late citizen or U. Filing 2012 tax return late S. Filing 2012 tax return late 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. Filing 2012 tax return late S. Filing 2012 tax return late citizen or national or a resident of the United States, Canada, or Mexico. Filing 2012 tax return late 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. Filing 2012 tax return late Adopted child. Filing 2012 tax return late   A legally adopted child is treated as your own child. Filing 2012 tax return late This includes a child lawfully placed with you for legal adoption. Filing 2012 tax return late   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. Filing 2012 tax return late   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. Filing 2012 tax return late   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. Filing 2012 tax return late    You may be able to take an adoption credit for other expenses related to an adoption. Filing 2012 tax return late See the Instructions for Form 8839, Qualified Adoption Expenses, for more information. Filing 2012 tax return late Child of divorced or separated parents. Filing 2012 tax return late   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. Filing 2012 tax return late 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. Filing 2012 tax return late This does not apply if the child's exemption is being claimed under a multiple support agreement (discussed later). Filing 2012 tax return late 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. Filing 2012 tax return late But see Child of divorced or separated parents , earlier, and Support claimed under a multiple support agreement, next. Filing 2012 tax return late Support claimed under a multiple support agreement. Filing 2012 tax return late   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. Filing 2012 tax return late 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. Filing 2012 tax return late   Any medical expenses paid by others who joined you in the agreement cannot be included as medical expenses by anyone. Filing 2012 tax return late However, you can include the entire unreimbursed amount you paid for medical expenses. Filing 2012 tax return late Example. Filing 2012 tax return late You and your three brothers each provide one-fourth of your mother's total support. Filing 2012 tax return late Under a multiple support agreement, you treat your mother as your dependent. Filing 2012 tax return late You paid all of her medical expenses. Filing 2012 tax return late Your brothers reimbursed you for three-fourths of these expenses. Filing 2012 tax return late In figuring your medical expense deduction, you can include only one-fourth of your mother's medical expenses. Filing 2012 tax return late Your brothers cannot include any part of the expenses. Filing 2012 tax return late 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. Filing 2012 tax return late 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. Filing 2012 tax return late This includes expenses for the decedent's spouse and dependents as well as for the decedent. Filing 2012 tax return late 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. Filing 2012 tax return late The expenses must be paid within the 1-year period beginning with the day after the date of death. Filing 2012 tax return late 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. Filing 2012 tax return late 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. Filing 2012 tax return late Amended returns and claims for refund are discussed in chapter 1. Filing 2012 tax return late 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. Filing 2012 tax return late 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. Filing 2012 tax return late 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). Filing 2012 tax return late This table does not include all possible medical expenses. Filing 2012 tax return late To determine if an expense not listed can be included in figuring your medical expense deduction, see What Are Medical Expenses , earlier. Filing 2012 tax return late Insurance Premiums You can include in medical expenses insurance premiums you pay for policies that cover medical care. Filing 2012 tax return late 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). Filing 2012 tax return late See Qualified Long-Term Care Insurance Contracts in Publication 502. Filing 2012 tax return late 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. Filing 2012 tax return late The cost of the medical part must be separately stated in the insurance contract or given to you in a separate statement. Filing 2012 tax return late Note. Filing 2012 tax return late 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. Filing 2012 tax return late 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. Filing 2012 tax return late Employer-sponsored health insurance plan. Filing 2012 tax return late   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. Filing 2012 tax return late 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. Filing 2012 tax return late Example. Filing 2012 tax return late You are a federal employee participating in the premium conversion plan of the Federal Employee Health Benefits (FEHB) program. Filing 2012 tax return late Your share of the FEHB premium is paid by making a pre-tax reduction in your salary. Filing 2012 tax return late 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. Filing 2012 tax return late Long-term care services. Filing 2012 tax return late   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. Filing 2012 tax return late This amount will be reported as wages in box 1 of your Form W-2. Filing 2012 tax return late Health reimbursement arrangement (HRA). Filing 2012 tax return late   If you have medical expenses that are reimbursed by a health reimbursement arrangement, you cannot include those expenses in your medical expenses. Filing 2012 tax return late This is because an HRA is funded solely by the employer. Filing 2012 tax return late Retired public safety officers. Filing 2012 tax return late   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. Filing 2012 tax return late This applies only to distributions that would otherwise be included in income. Filing 2012 tax return late Medicare A. Filing 2012 tax return late   If you are covered under social security (or if you are a government employee who paid Medicare tax), you are enrolled in Medicare A. Filing 2012 tax return late The payroll tax paid for Medicare A is not a medical expense. Filing 2012 tax return late   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. Filing 2012 tax return late In this situation you can include the premiums you paid for Medicare A as a medical expense. Filing 2012 tax return late Medicare B. Filing 2012 tax return late   Medicare B is supplemental medical insurance. Filing 2012 tax return late Premiums you pay for Medicare B are a medical expense. Filing 2012 tax return late Check the information you received from the Social Security Administration to find out your premium. Filing 2012 tax return late Medicare D. Filing 2012 tax return late    Medicare D is a voluntary prescription drug insurance program for persons with Medicare A or B. Filing 2012 tax return late You can include as a medical expense premiums you pay for Medicare D. Filing 2012 tax return late Prepaid insurance premiums. Filing 2012 tax return late   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). Filing 2012 tax return late Unused sick leave used to pay premiums. Filing 2012 tax return late   You must include in gross income cash payments you receive at the time of retirement for unused sick leave. Filing 2012 tax return late 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. Filing 2012 tax return late You can include this cost of continuing participation in the health plan as a medical expense. Filing 2012 tax return late   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. Filing 2012 tax return late You cannot include this cost of continuing participation in that health plan as a medical expense. Filing 2012 tax return late Table 21-1. Filing 2012 tax return late Medical and Dental Expenses Checklist. Filing 2012 tax return late See Publication 502 for more information about these and other expenses. Filing 2012 tax return late 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. Filing 2012 tax return late ) 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. Filing 2012 tax return late ) 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. Filing 2012 tax return late 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. Filing 2012 tax return late , 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. Filing 2012 tax return late 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. Filing 2012 tax return late See Nursing home , later. Filing 2012 tax return late You may be able to include in medical expenses the cost of lodging not provided in a hospital or similar institution. Filing 2012 tax return late You can include the cost of such lodging while away from home if all of the following requirements are met. Filing 2012 tax return late The lodging is primarily for and essential to medical care. Filing 2012 tax return late 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. Filing 2012 tax return late The lodging is not lavish or extravagant under the circumstances. Filing 2012 tax return late There is no significant element of personal pleasure, recreation, or vacation in the travel away from home. Filing 2012 tax return late The amount you include in medical expenses for lodging cannot be more than $50 for each night for each person. Filing 2012 tax return late You can include lodging for a person traveling with the person receiving the medical care. Filing 2012 tax return late 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. Filing 2012 tax return late Meals are not included. Filing 2012 tax return late Nursing home. Filing 2012 tax return late   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. Filing 2012 tax return late This includes the cost of meals and lodging in the home if a principal reason for being there is to get medical care. Filing 2012 tax return late   Do not include the cost of meals and lodging if the reason for being in the home is personal. Filing 2012 tax return late You can, however, include in medical expenses the part of the cost that is for medical or nursing care. Filing 2012 tax return late Transportation Include in medical expenses amounts paid for transportation primarily for, and essential to, medical care. Filing 2012 tax return late 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. Filing 2012 tax return late Car expenses. Filing 2012 tax return late   You can include out-of-pocket expenses, such as the cost of gas and oil, when you use your car for medical reasons. Filing 2012 tax return late You cannot include depreciation, insurance, general repair, or maintenance expenses. Filing 2012 tax return late   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. Filing 2012 tax return late    You can also include parking fees and tolls. Filing 2012 tax return late You can add these fees and tolls to your medical expenses whether you use actual expenses or use the standard mileage rate. Filing 2012 tax return late Example. Filing 2012 tax return late In 2013, Bill Jones drove 2,800 miles for medical reasons. Filing 2012 tax return late He spent $500 for gas, $30 for oil, and $100 for tolls and parking. Filing 2012 tax return late He wants to figure the amount he can include in medical expenses both ways to see which gives him the greater deduction. Filing 2012 tax return late He figures the actual expenses first. Filing 2012 tax return late He adds the $500 for gas, the $30 for oil, and the $100 for tolls and parking for a total of $630. Filing 2012 tax return late He then figures the standard mileage amount. Filing 2012 tax return late He multiplies 2,800 miles by 24 cents a mile for a total of $672. Filing 2012 tax return late He then adds the $100 tolls and parking for a total of $772. Filing 2012 tax return late 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. Filing 2012 tax return late Transportation expenses you cannot include. Filing 2012 tax return late   You cannot include in medical expenses the cost of transportation in the following situations. Filing 2012 tax return late Going to and from work, even if your condition requires an unusual means of transportation. Filing 2012 tax return late Travel for purely personal reasons to another city for an operation or other medical care. Filing 2012 tax return late Travel that is merely for the general improvement of one's health. Filing 2012 tax return late The costs of operating a specially equipped car for other than medical reasons. Filing 2012 tax return late 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. Filing 2012 tax return late (See chapter 32 and Publication 503, Child and Dependent Care Expenses. Filing 2012 tax return late ) 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. Filing 2012 tax return late 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. Filing 2012 tax return late 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. Filing 2012 tax return late This includes payments from Medicare. Filing 2012 tax return late 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. Filing 2012 tax return late Example. Filing 2012 tax return late You have insurance policies that cover your hospital and doctors' bills but not your nursing bills. Filing 2012 tax return late The insurance you receive for the hospital and doctors' bills is more than their charges. Filing 2012 tax return late 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. Filing 2012 tax return late Health reimbursement arrangement (HRA). Filing 2012 tax return late   A health reimbursement arrangement is an employer-funded plan that reimburses employees for medical care expenses and allows unused amounts to be carried forward. Filing 2012 tax return late 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. Filing 2012 tax return late Other reimbursements. Filing 2012 tax return late   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. Filing 2012 tax return late ) 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. Filing 2012 tax return late   You must, however, reduce your medical expenses by any part of these payments that is designated for medical costs. Filing 2012 tax return late See How Do You Figure and Report the Deduction on Your Tax Return , later. Filing 2012 tax return late   For how to treat damages received for personal injury or sickness, see Damages for Personal Injuries , later. Filing 2012 tax return late You do not have a medical deduction if you are reimbursed for all of your medical expenses for the year. Filing 2012 tax return late Excess reimbursement. Filing 2012 tax return late   If you are reimbursed more than your medical expenses, you may have to include the excess in income. Filing 2012 tax return late You may want to use Figure 21-A to help you decide if any of your reimbursement is taxable. Filing 2012 tax return late Premiums paid by you. Filing 2012 tax return late   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. Filing 2012 tax return late Generally, you do not include the excess reimbursement in your gross income. Filing 2012 tax return late Premiums paid by you and your employer. Filing 2012 tax return late   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. Filing 2012 tax return late   See Publication 502 to figure the amount of the excess reimbursement you must include in gross income. Filing 2012 tax return late Reimbursement in a later year. Filing 2012 tax return late   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. Filing 2012 tax return late   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. Filing 2012 tax return late 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. Filing 2012 tax return late Figure 21-A. Filing 2012 tax return late Is Your Excess Medical Reimbursement Taxable? Please click here for the text description of the image. Filing 2012 tax return late Figure 21-A. Filing 2012 tax return late Is Your Excess Medical Reimbursement Taxable? Medical expenses not deducted. Filing 2012 tax return late   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. Filing 2012 tax return late 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. Filing 2012 tax return late However, if the reimbursement is more than the expense, see Excess reimbursement , earlier. Filing 2012 tax return late Example. Filing 2012 tax return late For 2013, you were unmarried and under age 65 and you had medical expenses of $500. Filing 2012 tax return late You cannot deduct the $500 because it is less than 10% of your AGI. Filing 2012 tax return late 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. Filing 2012 tax return late 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. Filing 2012 tax return late 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. Filing 2012 tax return late See Reimbursement in a Later Year , discussed under How Do You Treat Reimbursements, earlier. Filing 2012 tax return late Future medical expenses. Filing 2012 tax return late   If you receive an amount in settlement of a damage suit for personal injuries, part of that award may be for future medical expenses. Filing 2012 tax return late If it is, you must reduce any future medical expenses for these injuries until the amount you received has been completely used. Filing 2012 tax return late 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. Filing 2012 tax return late What Tax Form Do You Use? You figure your medical expense deduction on Schedule A (Form 1040). Filing 2012 tax return late You cannot claim medical expenses on Form 1040A or Form 1040EZ. Filing 2012 tax return late If you need more information on itemized deductions or you are not sure if you can itemize, see chapter 20. Filing 2012 tax return late Enter the amount you paid for medical and dental expenses on Schedule A (Form 1040). Filing 2012 tax return late This should be your expenses that were not reimbursed by insurance or any other sources. Filing 2012 tax return late Generally, you can deduct only the amount of your medical and dental expenses that is more than 10% of your AGI (7. Filing 2012 tax return late 5% if either you or your spouse was age 65 or older) shown on line 38, Form 1040. Filing 2012 tax return late 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. Filing 2012 tax return late If you take a business deduction for impairment-related work expenses, do not take a medical deduction for the same expenses. Filing 2012 tax return late 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. Filing 2012 tax return late Impairment-related expenses defined. Filing 2012 tax return late   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. Filing 2012 tax return late Where to report. Filing 2012 tax return late   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. Filing 2012 tax return late   If you are an employee, complete Form 2106, Employee Business Expenses, or Form 2106-EZ, Unreimbursed Employee Business Expenses. Filing 2012 tax return late Enter on Schedule A (Form 1040), that part of the amount on Form 2106, or Form 2106-EZ, that is related to your impairment. Filing 2012 tax return late Enter the amount that is unrelated to your impairment also on Schedule A (Form 1040). Filing 2012 tax return late Your impairment-related work expenses are not subject to the 2%-of-adjusted-gross-income limit that applies to other employee business expenses. Filing 2012 tax return late Example. Filing 2012 tax return late You are blind. Filing 2012 tax return late You must use a reader to do your work. Filing 2012 tax return late 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. Filing 2012 tax return late The reader's services are only for your work. Filing 2012 tax return late You can deduct your expenses for the reader as business expenses. Filing 2012 tax return late 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. Filing 2012 tax return late 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. Filing 2012 tax return late 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. Filing 2012 tax return late 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. Filing 2012 tax return late 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. Filing 2012 tax return late 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. Filing 2012 tax return late But if any of the following applies, do not use that worksheet. Filing 2012 tax return late You had more than one source of income subject to self-employment tax. Filing 2012 tax return late You file Form 2555, Foreign Earned Income, or Form 2555-EZ, Foreign Earned Income Exclusion. Filing 2012 tax return late You are using amounts paid for qualified long-term care insurance to figure the deduction. Filing 2012 tax return late If you cannot use the worksheet in the Form 1040 instructions, use the worksheet in Publication 535, Business Expenses, to figure your deduction. Filing 2012 tax return late Note. Filing 2012 tax return late 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. Filing 2012 tax return late If you are claiming the health coverage tax credit, subtract the amount shown on Form 8885, from the total insurance premiums you paid. Filing 2012 tax return late 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. Filing 2012 tax return late Where to report. Filing 2012 tax return late    You take this deduction on Form 1040. Filing 2012 tax return late 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. Filing 2012 tax return late 5% if either you or your spouse was age 65 or older). Filing 2012 tax return late 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. Filing 2012 tax return late Prev  Up  Next   Home   More Online Publications