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

Free State And Federal E File

Amend Federal Tax ReturnWhen Is The Last Day To File Taxes 2014How To File An Amendment On My TaxesHow To File State Taxes For FreeBeware Amending Tax ReturnsFile An Extension On My TaxesFree Efile For State And FederalStudents TaxesFree Tax Usa 20122011 Free Tax UsaFile 1040x Online FreeI Didn T File My 2012 TaxesHow To File 2012 Taxes Late Online FreeFile State ReturnIrs Form 1040x 2013 Tax ReturnFederal Tax Form 1040 Ez 2011Online Tax AmendmentFiling Prior Year Tax ReturnsFree Tax Filing 2011 H&r BlockIrs Tax Form 1120 For 2012How To File State Income Tax For FreeState Of Illinois Tax Filing OnlineHow Do You File An Amended Tax ReturnHow To File My 2011 Taxes1040x Amended Tax FormAmending 2011 Tax ReturnHow To File A Amended Tax ReturnLast Day File Taxes 2012H&r Block At Home FreeFile 2011 Taxes Free OnlineAmending A Tax Return 20122012 Ez FormHow Do I Amend My State Tax ReturnFree Irs FormsFree State Filing Income TaxWww Taxact ComWhere Can I File My State And Federal Taxes Online For Free1040nr Software FreeH&r Block File 2010 TaxesTax Form 2011

Free State And Federal E File

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

Contact My Local Office in California

Face-to-face Tax Help

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

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

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

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

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

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

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

City Street Address Days/Hours of Service Telephone*
Bakersfield 4825 Coffee Rd.
Bakersfield, CA 93308

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

Services Provided

(661) 632-2799
Camarillo 751 Daily Dr.
Camarillo, CA 93010

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

Services Provided

(805) 445-4771
Chico 1395 Ridgewood Dr.
Chico, CA 95973

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

Services Provided

(530) 343-2324
El Centro 2345 S. Second St.
El Centro, CA 92243

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

 

Services Provided

(760) 352-3721
El Monte 9350 East Flair Dr.
El Monte, CA 91731

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

 

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

 

Services Provided

(626) 927-1201
Fresno 2525 Capitol St
Fresno, CA 93721

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

 

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

 

Services Provided

(559) 444-2044
Laguna Niguel 24000 Avila Rd.
Laguna Niguel, CA 92677

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

 

Services Provided

(949) 389-4002
Long Beach 501 W. Ocean Blvd.
Long Beach, CA 90802

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

 

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

 

Services Provided

(562) 491-7751
Los Angeles 300 N. Los Angeles St.
Los Angeles, CA 90012

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

 

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

 

Services Provided

(213) 576-3009
Modesto 1533 Lakewood Ave.
Modesto, CA 95355

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

Services Provided

(209) 548-7388
Oakland 1301 Clay St.
Oakland, CA 94612

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

 

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

Services Provided

(510) 637-2487
Palm Springs 556 S. Paseo Dorotea
Palm Springs, CA 92264

Monday-Friday - 8:30 a.m.-4:30 p.m.
(Closed for lunch 1:00 p.m. - 2:00 p.m.)

 

Services Provided

(760) 866-6125
Redding 850 Industrial St.
Redding, CA 96002

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

 

Services Provided

(530) 224-0695
Sacramento  4330 Watt Ave.
Sacramento, CA 95821 

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

 

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

Services Provided

(916) 974-5225 
Salinas  928 East Blanco Rd
Salinas, CA  93901 

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

Services Provided

(831) 753-6895 
San Bernardino  290 N. D St.
San Bernardino, CA 92401 

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

 

Services Provided

(909) 388-8108 
San Diego  880 Front St.
San Diego, CA 92101 

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

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

 

  Services Provided

(619) 615-9555 
San Francisco  450 Golden Gate Ave.
San Francisco, CA 94102 

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

Services Provided

(415) 553-8990 
San Jose  55 S. Market St.
San Jose, CA 95113 

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

 

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

Services Provided

(408) 282-0179 
San Marcos  1 Civic Center Dr.
San Marcos, CA 92069 

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

 

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

Services Provided

(760) 736-7355
Santa Ana  801 Civic Center Drive W.
Santa Ana, CA 92701 

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

Services Provided

(714) 347-9204 
Santa Barbara  1332 Anacapa St.
Santa Barbara, CA 93101 

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

 

Services Provided

(805) 564-7555 
Santa Maria  2384 Professional Parkway
Santa Maria, CA 93455 

Monday-Friday - 8:30 a.m.- 4:30 p.m.
(Closed for lunch 1:00 p.m. - 2:00 p.m.)
 

Services Provided

(805) 352-0355 
Santa Rosa  777 Sonoma Ave.
Santa Rosa, CA 95404 

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

Services Provided

(707) 523-0924
Stockton  4643 Quail Lakes Dr.
Stockton, CA 95207 

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

Services Provided

(209) 942-1910 
Van Nuys  6230 Van Nuys Blvd.
Van Nuys, CA 91401 

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

 

Services Provided

(818) 779-3625 
Visalia  5300 W. Tulare St.
Visalia, CA 93277

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

Services Provided

(559) 265-4109 

Walnut Creek  185 Lennon Lane
Walnut Creek, CA 94598 

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

Services Provided

(925) 935-9308

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

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

The Taxpayer Advocate Service:  Within California call:

 Oakland  (510) 637-2703
 San Jose  (408) 817-6850
 Los Angeles  (213) 576-3140
 Laguna Niguel  (949) 389-4804
 Sacramento   (916) 974-5007

Call 1-877-777-4778 elsewhere, or see  Publication 1546, The Taxpayer Advocate Service of the IRS. For further information, see  Tax Topic 104.

Partnerships

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

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

Internal Revenue Service
300 North Los Angeles St. MS 6602
Los Angeles, CA 90012

Internal Revenue Service
4330 Watt Avenue, SA 5650
North Highlands, CA 95660

Internal Revenue Service
1 Civic Center Drive, Ste. 400
San Marcos, CA 92069

Internal Revenue Service
1301 Clay Street, 110S
Oakland, CA 94612

Internal Revenue Service
55 South Market HQ 6600
San Jose, CA 95113

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

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

Page Last Reviewed or Updated: 28-Mar-2014

The Free State And Federal E File

Free state and federal e file Publication 529 - Main Content Table of Contents Deductions Subject to the 2% LimitUnreimbursed Employee Expenses Tax Preparation Fees Other Expenses Deductions Not Subject to the 2% LimitList of Deductions Nondeductible ExpensesList of Nondeductible Expenses How To ReportWho can use Form 2106-EZ. Free state and federal e file Computer used in a home office. Free state and federal e file Example How To Get Tax HelpLow Income Taxpayer Clinics Deductions Subject to the 2% Limit You can deduct certain expenses as miscellaneous itemized deductions on Schedule A (Form 1040 or Form 1040NR). Free state and federal e file You can claim the amount of expenses that is more than 2% of your adjusted gross income. Free state and federal e file You figure your deduction on Schedule A by subtracting 2% of your adjusted gross income from the total amount of these expenses. Free state and federal e file Your adjusted gross income is the amount on Form 1040, line 38, or Form 1040NR, line 37. Free state and federal e file Generally, you apply the 2% limit after you apply any other deduction limit. Free state and federal e file For example, you apply the 50% (or 80%) limit on business-related meals and entertainment (discussed later under Travel, Transportation, Meals, Entertainment, Gifts, and Local Lodging ) before you apply the 2% limit. Free state and federal e file Deductions subject to the 2% limit are discussed in the following three categories. Free state and federal e file Unreimbursed employee expenses (Schedule A (Form 1040), line 21 or Schedule A (Form 1040NR), line 7). Free state and federal e file Tax preparation fees (Schedule A (Form 1040), line 22 or Schedule A (Form 1040NR), line 8). Free state and federal e file Other expenses (Schedule A (Form 1040), line 23 or Schedule A (Form 1040NR), line 9). Free state and federal e file Unreimbursed Employee Expenses Generally, the following expenses are deducted on Schedule A (Form 1040), line 21, or Schedule A (Form 1040NR), line 7. Free state and federal e file You can deduct only unreimbursed employee expenses that are: Paid or incurred during your tax year, For carrying on your trade or business of being an employee, and Ordinary and necessary. Free state and federal e file An expense is ordinary if it is common and accepted in your trade, business, or profession. Free state and federal e file An expense is necessary if it is appropriate and helpful to your business. Free state and federal e file An expense does not have to be required to be considered necessary. Free state and federal e file You may be able to deduct the following items as unreimbursed employee expenses. Free state and federal e file Business bad debt of an employee. Free state and federal e file Business liability insurance premiums. Free state and federal e file Damages paid to a former employer for breach of an employment contract. Free state and federal e file Depreciation on a computer your employer requires you to use in your work. Free state and federal e file Dues to a chamber of commerce if membership helps you do your job. Free state and federal e file Dues to professional societies. Free state and federal e file Educator expenses. Free state and federal e file Home office or part of your home used regularly and exclusively in your work. Free state and federal e file Job search expenses in your present occupation. Free state and federal e file Laboratory breakage fees. Free state and federal e file Legal fees related to your job. Free state and federal e file Licenses and regulatory fees. Free state and federal e file Malpractice insurance premiums. Free state and federal e file Medical examinations required by an employer. Free state and federal e file Occupational taxes. Free state and federal e file Passport for a business trip. Free state and federal e file Repayment of an income aid payment received under an employer's plan. Free state and federal e file Research expenses of a college professor. Free state and federal e file Rural mail carriers' vehicle expenses. Free state and federal e file Subscriptions to professional journals and trade magazines related to your work. Free state and federal e file Tools and supplies used in your work. Free state and federal e file Travel, transportation, meals, entertainment, gifts, and local lodging related to your work. Free state and federal e file Union dues and expenses. Free state and federal e file Work clothes and uniforms if required and not suitable for everyday use. Free state and federal e file Work-related education. Free state and federal e file Business Bad Debt A business bad debt is a loss from a debt created or acquired in your trade or business. Free state and federal e file Any other worthless debt is a business bad debt only if there is a very close relationship between the debt and your trade or business when the debt becomes worthless. Free state and federal e file A debt has a very close relationship to your trade or business of being an employee if your main motive for incurring the debt is a business reason. Free state and federal e file Example. Free state and federal e file You make a bona fide loan to the corporation you work for. Free state and federal e file It fails to pay you back. Free state and federal e file You had to make the loan in order to keep your job. Free state and federal e file You have a business bad debt as an employee. Free state and federal e file More information. Free state and federal e file   For more information on business bad debts, see chapter 10 in Publication 535. Free state and federal e file For information on nonbusiness bad debts, see chapter 4 in Publication 550, Investment Income and Expenses. Free state and federal e file Business Liability Insurance You can deduct insurance premiums you paid for protection against personal liability for wrongful acts on the job. Free state and federal e file Damages for Breach of Employment Contract If you break an employment contract, you can deduct damages you pay your former employer if the damages are attributable to the pay you received from that employer. Free state and federal e file Depreciation on Computers You can claim a depreciation deduction for a computer that you use in your work as an employee if its use is: For the convenience of your employer, and Required as a condition of your employment. Free state and federal e file For the convenience of your employer. Free state and federal e file   This means that your use of the computer is for a substantial business reason of your employer. Free state and federal e file You must consider all facts in making this determination. Free state and federal e file Use of your computer during your regular working hours to carry on your employer's business is generally for the convenience of your employer. Free state and federal e file Required as a condition of your employment. Free state and federal e file   This means that you cannot properly perform your duties without the computer. Free state and federal e file Whether you can properly perform your duties without it depends on all the facts and circumstances. Free state and federal e file It is not necessary that your employer explicitly requires you to use your computer. Free state and federal e file But neither is it enough that your employer merely states that your use of the item is a condition of your employment. Free state and federal e file Example. Free state and federal e file You are an engineer with an engineering firm. Free state and federal e file You occasionally take work home at night rather than work late at the office. Free state and federal e file You own and use a computer that is similar to the one you use at the office to complete your work at home. Free state and federal e file Since your use of the computer is not for the convenience of your employer and is not required as a condition of your employment, you cannot claim a depreciation deduction for it. Free state and federal e file Which depreciation method to use. Free state and federal e file   The depreciation method you use depends on whether you meet the more-than-50%-use test. Free state and federal e file More-than-50%-use test met. Free state and federal e file   You meet this test if you use the computer more than 50% in your work. Free state and federal e file If you meet this test, you can claim accelerated depreciation under the General Depreciation System (GDS). Free state and federal e file In addition, you may be able to take the section 179 deduction for the year you place the item in service. Free state and federal e file More-than-50%-use test not met. Free state and federal e file   If you do not meet the more-than-50%-use test, you are limited to the straight line method of depreciation under the Alternative Depreciation System (ADS). Free state and federal e file You also cannot claim the section 179 deduction. Free state and federal e file (But if you use your computer in a home office, see the exception below. Free state and federal e file ) Investment use. Free state and federal e file   Your use of a computer in connection with investments (described later under Other Expenses ) does not count as use in your work. Free state and federal e file However, you can combine your investment use with your work use in figuring your depreciation deduction. Free state and federal e file Exception for computer used in a home office. Free state and federal e file   The more-than-50%-use test does not apply to a computer used only in a part of your home that meets the requirements described later under Home Office . Free state and federal e file You can claim accelerated depreciation using GDS for a computer used in a qualifying home office, even if you do not use it more than 50% in your work. Free state and federal e file You also may be able to take a section 179 deduction for the year you place the computer in service. Free state and federal e file See Computer used in a home office under How To Report, later. Free state and federal e file More information. Free state and federal e file   For more information on depreciation and the section 179 deduction for computers and other items used in a home office, see Business Furniture and Equipment in Publication 587. Free state and federal e file Publication 946 has detailed information about the section 179 deduction and depreciation deductions using GDS and ADS. Free state and federal e file Reporting your depreciation deduction. Free state and federal e file    See How To Report, later, for information about reporting a deduction for depreciation. Free state and federal e file You must keep records to prove your percentage of business and investment use. Free state and federal e file Dues to Chambers of Commerce and Professional Societies You may be able to deduct dues paid to professional organizations (such as bar associations and medical associations) and to chambers of commerce and similar organizations, if membership helps you carry out the duties of your job. Free state and federal e file Similar organizations include: Boards of trade, Business leagues, Civic or public service organizations, Real estate boards, and Trade associations. Free state and federal e file Lobbying and political activities. Free state and federal e file    You may not be able to deduct that part of your dues that is for certain lobbying and political activities. Free state and federal e file See Lobbying Expenses under Nondeductible Expenses, later. Free state and federal e file Educator Expenses If you were an eligible educator in 2013, you can deduct up to $250 of qualified expenses you paid in 2013 as an adjustment to gross income on Form 1040, line 23, rather than as a miscellaneous itemized deduction. Free state and federal e file If you file Form 1040A, you can deduct these expenses on line 16. Free state and federal e file If you and your spouse are filing jointly and both of you were eligible educators, the maximum deduction is $500. Free state and federal e file However, neither spouse can deduct more than $250 of his or her qualified expenses. Free state and federal e file Eligible educator. Free state and federal e file   An eligible educator is a kindergarten through grade 12 teacher, instructor, counselor, principal, or aide in school for at least 900 hours during a school year. Free state and federal e file Qualified expenses. Free state and federal e file   Qualified expenses include ordinary and necessary expenses paid in connection with books, supplies, equipment (including computer equipment, software, and services), and other materials used in the classroom. Free state and federal e file An ordinary expense is one that is common and accepted in your educational field. Free state and federal e file A necessary expense is one that is helpful and appropriate for your profession as an educator. Free state and federal e file An expense does not have to be required to be considered necessary. Free state and federal e file   Qualified expenses do not include expenses for home schooling or for nonathletic supplies for courses in health or physical education. Free state and federal e file You must reduce your qualified expenses by the following amounts. Free state and federal e file Excludable U. Free state and federal e file S. Free state and federal e file series EE and I savings bond interest from Form 8815. Free state and federal e file Nontaxable qualified state tuition program earnings. Free state and federal e file Nontaxable earnings from Coverdell education savings accounts. Free state and federal e file Any reimbursements you received for those expenses that were not reported to you on your Form W-2, box 1. Free state and federal e file Educator expenses over limit. Free state and federal e file   If you were an educator in 2013 and you had qualified expenses that you cannot take as an adjustment to gross income, you can deduct the rest as an itemized deduction subject to the 2% limit. Free state and federal e file Home Office If you use a part of your home regularly and exclusively for business purposes, you may be able to deduct a part of the operating expenses and depreciation of your home. Free state and federal e file You can claim this deduction for the business use of a part of your home only if you use that part of your home regularly and exclusively: As your principal place of business for any trade or business, As a place to meet or deal with your patients, clients, or customers in the normal course of your trade or business, or In the case of a separate structure not attached to your home, in connection with your trade or business. Free state and federal e file The regular and exclusive business use must be for the convenience of your employer and not just appropriate and helpful in your job. Free state and federal e file Principal place of business. Free state and federal e file   If you have more than one place of business, the business part of your home is your principal place of business if: You use it regularly and exclusively for administrative or management activities of your trade or business, and You have no other fixed location where you conduct substantial administrative or management activities of your trade or business. Free state and federal e file   Otherwise, the location of your principal place of business generally depends on the relative importance of the activities performed at each location and the time spent at each location. Free state and federal e file You should keep records that will give the information needed to figure the deduction according to these rules. Free state and federal e file Also keep canceled checks, substitute checks, or account statements and receipts of the expenses paid to prove the deductions you claim. Free state and federal e file More information. Free state and federal e file   See Publication 587 for more detailed information and a worksheet for figuring the deduction. Free state and federal e file Job Search Expenses You can deduct certain expenses you have in looking for a new job in your present occupation, even if you do not get a new job. Free state and federal e file You cannot deduct these expenses if: You are looking for a job in a new occupation, There was a substantial break between the ending of your last job and your looking for a new one, or You are looking for a job for the first time. Free state and federal e file Employment and outplacement agency fees. Free state and federal e file    You can deduct employment and outplacement agency fees you pay in looking for a new job in your present occupation. Free state and federal e file Employer pays you back. Free state and federal e file   If, in a later year, your employer pays you back for employment agency fees, you must include the amount you receive in your gross income up to the amount of your tax benefit in the earlier year. Free state and federal e file See Recoveries in Publication 525. Free state and federal e file Employer pays the employment agency. Free state and federal e file   If your employer pays the fees directly to the employment agency and you are not responsible for them, you do not include them in your gross income. Free state and federal e file Résumé. Free state and federal e file   You can deduct amounts you spend for preparing and mailing copies of a résumé to prospective employers if you are looking for a new job in your present occupation. Free state and federal e file Travel and transportation expenses. Free state and federal e file   If you travel to an area and, while there, you look for a new job in your present occupation, you may be able to deduct travel expenses to and from the area. Free state and federal e file You can deduct the travel expenses if the trip is primarily to look for a new job. Free state and federal e file The amount of time you spend on personal activity compared to the amount of time you spend in looking for work is important in determining whether the trip is primarily personal or is primarily to look for a new job. Free state and federal e file   Even if you cannot deduct the travel expenses to and from an area, you can deduct the expenses of looking for a new job in your present occupation while in the area. Free state and federal e file    You can choose to use the standard mileage rate to figure your car expenses. Free state and federal e file The 2013 rate for business use of a vehicle is 56½ cents per mile. Free state and federal e file See Publication 463 for more information on travel and car expenses. Free state and federal e file Legal Fees You can deduct legal fees related to doing or keeping your job. Free state and federal e file Licenses and Regulatory Fees You can deduct the amount you pay each year to state or local governments for licenses and regulatory fees for your trade, business, or profession. Free state and federal e file Occupational Taxes You can deduct an occupational tax charged at a flat rate by a locality for the privilege of working or conducting a business in the locality. Free state and federal e file If you are an employee, you can claim occupational taxes only as a miscellaneous deduction subject to the 2% limit; you cannot claim them as a deduction for taxes elsewhere on your return. Free state and federal e file Repayment of Income Aid Payment An “income aid payment” is one that is received under an employer's plan to aid employees who lose their jobs because of lack of work. Free state and federal e file If you repay a lump-sum income aid payment that you received and included in income in an earlier year, you can deduct the repayment. Free state and federal e file Research Expenses of a College Professor If you are a college professor, you can deduct your research expenses, including travel expenses, for teaching, lecturing, or writing and publishing on subjects that relate directly to your teaching duties. Free state and federal e file You must have undertaken the research as a means of carrying out the duties expected of a professor and without expectation of profit apart from salary. Free state and federal e file However, you cannot deduct the cost of travel as a form of education. Free state and federal e file Rural Mail Carriers' Vehicle Expenses If your expenses to use a vehicle in performing services as a rural mail carrier are more than the amount of your reimbursements, you can deduct the unreimbursed expenses. Free state and federal e file See chapter 4 of Publication 463 for more information. Free state and federal e file Tools Used in Your Work Generally, you can deduct amounts you spend for tools used in your work if the tools wear out and are thrown away within 1 year from the date of purchase. Free state and federal e file You can depreciate the cost of tools that have a useful life substantially beyond the tax year. Free state and federal e file For more information about depreciation, see Publication 946. Free state and federal e file Travel, Transportation, Meals, Entertainment, Gifts, and Local Lodging If you are an employee and have ordinary and necessary business-related expenses for travel away from home, local transportation, entertainment, and gifts, you may be able to deduct these expenses. Free state and federal e file Generally, you must file Form 2106 or Form 2106-EZ to claim these expenses. Free state and federal e file Travel expenses. Free state and federal e file   Travel expenses are those incurred while traveling away from home for your employer. Free state and federal e file You can deduct travel expenses paid or incurred in connection with a temporary work assignment. Free state and federal e file Generally, you cannot deduct travel expenses paid or incurred in connection with an indefinite work assignment. Free state and federal e file   Travel expenses may include: The cost of getting to and from your business destination (air, rail, bus, car, etc. Free state and federal e file ), Meals and lodging while away from home, Taxi fares, Baggage charges, and Cleaning and laundry expenses. Free state and federal e file   Travel expenses are discussed more fully in chapter 1 of Publication 463. Free state and federal e file Temporary work assignment. Free state and federal e file    If your assignment or job away from home in a single location is realistically expected to last (and does in fact last) for 1 year or less, it is temporary, unless there are facts and circumstances that indicate it is not. Free state and federal e file Indefinite work assignment. Free state and federal e file   If your assignment or job away from home in a single location is realistically expected to last for more than 1 year, it is indefinite, whether or not it actually lasts for more than 1 year. Free state and federal e file If your assignment or job away from home in a single location is realistically expected to last for 1 year or less, but at some later date it is realistically expected to exceed 1 year, it will be treated as temporary (in the absence of facts and circumstances indicating otherwise) until the date that your realistic expectation changes, and it will be treated as indefinite after that date. Free state and federal e file Federal crime investigation and prosecution. Free state and federal e file   If you are a federal employee participating in a federal crime investigation or prosecution, you are not subject to the 1-year rule for deducting temporary travel expenses. Free state and federal e file This means that you may be able to deduct travel expenses even if you are away from your tax home for more than 1 year. Free state and federal e file   To qualify, the Attorney General must certify that you are traveling: For the Federal Government, In a temporary duty status, and To investigate, prosecute, or provide support services for the investigation or prosecution of a federal crime. Free state and federal e file Armed Forces reservists traveling more than 100 miles from home. Free state and federal e file   If you are a member of a reserve component of the Armed Forces of the United States and you travel more than 100 miles away from home in connection with your performance of services as a member of the reserves, you can deduct some of your travel expenses as an adjustment to gross income rather than as a miscellaneous itemized deduction. Free state and federal e file The amount of expenses you can deduct as an adjustment to gross income is limited to the regular federal per diem rate (for lodging, meals, and incidental expenses) and the standard mileage rate (for car expenses) plus any parking fees, ferry fees, and tolls. Free state and federal e file The balance, if any, is reported on Schedule A. Free state and federal e file   You are a member of a reserve component of the Armed Forces of the United States if you are in the Army, Naval, Marine Corps, Air Force, Coast Guard Reserve, the Army National Guard of the United States, the Air National Guard of the United States, or the Reserve Corps of the Public Health Service. Free state and federal e file   For more information on travel expenses, see Publication 463. Free state and federal e file Local transportation expenses. Free state and federal e file   Local transportation expenses are the expenses of getting from one workplace to another when you are not traveling away from home. Free state and federal e file They include the cost of transportation by air, rail, bus, taxi, and the cost of using your car. Free state and federal e file   You can choose to use the standard mileage rate to figure your car expenses. Free state and federal e file The 2013 rate for business use of a vehicle is 56½ cents per mile. Free state and federal e file    In general, the costs of commuting between your residence and your place of business are nondeductible. Free state and federal e file Work at two places in a day. Free state and federal e file   If you work at two places in a day, whether or not for the same employer, you can generally deduct the expenses of getting from one workplace to the other. Free state and federal e file Temporary work location. Free state and federal e file   You can deduct expenses incurred in going between your home and a temporary work location if at least one of the following applies. Free state and federal e file The work location is outside the metropolitan area where you live and normally work. Free state and federal e file You have at least one regular work location (other than your home) for the same trade or business. Free state and federal e file (If this applies, the distance between your home and the temporary work location does not matter. Free state and federal e file )   For this purpose, a work location is generally considered temporary if your work there is realistically expected to last (and does in fact last) for 1 year or less. Free state and federal e file It is not temporary if your work there is realistically expected to last for more than 1 year, even if it actually lasts for 1 year or less. Free state and federal e file If your work there initially is realistically expected to last for 1 year or less, but later is realistically expected to last for more than 1 year, the work location is generally considered temporary until the date your realistic expectation changes and not temporary after that date. Free state and federal e file For more information, see chapter 1 of Publication 463. Free state and federal e file Home office. Free state and federal e file   You can deduct expenses incurred in going between your home and a workplace if your home is your principal place of business for the same trade or business. Free state and federal e file (In this situation, whether the other workplace is temporary or regular and its distance from your home do not matter. Free state and federal e file ) See Home Office , earlier, for a discussion on the use of your home as your principal place of business. Free state and federal e file Meals and entertainment. Free state and federal e file   Generally, you can deduct entertainment expenses (including entertainment-related meals) only if they are directly related to the active conduct of your trade or business. Free state and federal e file However, the expense only needs to be associated with the active conduct of your trade or business if it directly precedes or follows a substantial and bona fide business-related discussion. Free state and federal e file   You can deduct only 50% of your business-related meal and entertainment expenses unless the expenses meet certain exceptions. Free state and federal e file You apply this 50% limit before you apply the 2%-of-adjusted-gross-income limit. Free state and federal e file Meals when subject to “hours of service” limits. Free state and federal e file   You can deduct 80% of your business-related meal expenses if you consume the meals during or incident to any period subject to the Department of Transportation's “hours of service” limits. Free state and federal e file You apply this 80% limit before you apply the 2%-of-adjusted-gross-income limit. Free state and federal e file Gift expenses. Free state and federal e file   You can generally deduct up to $25 of business gifts you give to any one individual during the year. Free state and federal e file The following items do not count toward the $25 limit. Free state and federal e file Identical, widely distributed items costing $4 or less that have your name clearly and permanently imprinted. Free state and federal e file Signs, racks, and promotional materials to be displayed on the business premises of the recipient. Free state and federal e file Local lodging. Free state and federal e file   If your employer provides or requires you to obtain lodging while you are not traveling away from home, you can deduct the cost of the lodging if it is: on a temporary basis, necessary for you to participate in or be available for a business meeting or employer function, and the costs are ordinary and necessary, but not lavish or extravagant. Free state and federal e file   If your employer provides the lodging or reimburses you for the cost of the lodging, you can deduct the cost only if the value or the reimbursement is included in your gross income because it is reported as wages on your Form W-2. Free state and federal e file Additional information. Free state and federal e file    See Publication 463 for more information on travel, transportation, meal, entertainment, and gift expenses, and reimbursements for these expenses. Free state and federal e file Union Dues and Expenses You can deduct dues and initiation fees you pay for union membership. Free state and federal e file You can also deduct assessments for benefit payments to unemployed union members. Free state and federal e file However, you cannot deduct the part of the assessments or contributions that provides funds for the payment of sick, accident, or death benefits. Free state and federal e file Also, you cannot deduct contributions to a pension fund even if the union requires you to make the contributions. Free state and federal e file You may not be able to deduct amounts you pay to the union that are related to certain lobbying and political activities. Free state and federal e file See Lobbying Expenses under Nondeductible Expenses, later. Free state and federal e file Work Clothes and Uniforms You can deduct the cost and upkeep of work clothes if the following two requirements are met. Free state and federal e file You must wear them as a condition of your employment. Free state and federal e file The clothes are not suitable for everyday wear. Free state and federal e file It is not enough that you wear distinctive clothing. Free state and federal e file The clothing must be specifically required by your employer. Free state and federal e file Nor is it enough that you do not, in fact, wear your work clothes away from work. Free state and federal e file The clothing must not be suitable for taking the place of your regular clothing. Free state and federal e file Examples of workers who may be able to deduct the cost and upkeep of work clothes are: delivery workers, firefighters, health care workers, law enforcement officers, letter carriers, professional athletes, and transportation workers (air, rail, bus, etc. Free state and federal e file ). Free state and federal e file Musicians and entertainers can deduct the cost of theatrical clothing and accessories that are not suitable for everyday wear. Free state and federal e file However, work clothing consisting of white cap, white shirt or white jacket, white bib overalls, and standard work shoes, which a painter is required by his union to wear on the job, is not distinctive in character or in the nature of a uniform. Free state and federal e file Similarly, the costs of buying and maintaining blue work clothes worn by a welder at the request of a foreman are not deductible. Free state and federal e file Protective clothing. Free state and federal e file   You can deduct the cost of protective clothing required in your work, such as safety shoes or boots, safety glasses, hard hats, and work gloves. Free state and federal e file   Examples of workers who may be required to wear safety items are: carpenters, cement workers, chemical workers, electricians, fishing boat crew members, machinists, oil field workers, pipe fitters, steamfitters, and truck drivers. Free state and federal e file Military uniforms. Free state and federal e file   You generally cannot deduct the cost of your uniforms if you are on full-time active duty in the armed forces. Free state and federal e file However, if you are an armed forces reservist, you can deduct the unreimbursed cost of your uniform if military regulations restrict you from wearing it except while on duty as a reservist. Free state and federal e file In figuring the deduction, you must reduce the cost by any nontaxable allowance you receive for these expenses. Free state and federal e file   If local military rules do not allow you to wear fatigue uniforms when you are off duty, you can deduct the amount by which the cost of buying and keeping up these uniforms is more than the uniform allowance you receive. Free state and federal e file   If you are a student at an armed forces academy, you cannot deduct the cost of your uniforms if they replace regular clothing. Free state and federal e file However, you can deduct the cost of insignia, shoulder boards, and related items. Free state and federal e file    You can deduct the cost of your uniforms if you are a civilian faculty or staff member of a military school. Free state and federal e file Work-Related Education You can deduct expenses you have for education, even if the education may lead to a degree, if the education meets at least one of the following two tests. Free state and federal e file It maintains or improves skills required in your present work. Free state and federal e file It is required by your employer or the law to keep your salary, status, or job, and the requirement serves a business purpose of your employer. Free state and federal e file You cannot deduct expenses you have for education, even though one or both of the preceding tests are met, if the education: Is needed to meet the minimum educational requirements to qualify you in your trade or business, or Is part of a program of study that will lead to qualifying you in a new trade or business. Free state and federal e file If your education qualifies, you can deduct expenses for tuition, books, supplies, laboratory fees, and similar items, and certain transportation costs. Free state and federal e file If the education qualifies you for a new trade or business, you cannot deduct the educational expenses even if you do not intend to enter that trade or business. Free state and federal e file Travel as education. Free state and federal e file   You cannot deduct the cost of travel that in itself constitutes a form of education. Free state and federal e file For example, a French teacher who travels to France to maintain general familiarity with the French language and culture cannot deduct the cost of the trip as an educational expense. Free state and federal e file More information. Free state and federal e file    See Publication 970, Tax Benefits for Education, for a complete discussion of the deduction for work-related education expenses. Free state and federal e file Education Expenses During Unemployment If you stop working for a year or less in order to get education in order to maintain or improve skills needed in your present work and then return to the same general type of work, your absence is considered temporary. Free state and federal e file Education that you get during a temporary absence is qualifying work-related education if it maintains or improves skills needed in your present work. Free state and federal e file Tax Preparation Fees You can usually deduct tax preparation fees on the return for the year in which you pay them. Free state and federal e file Thus, on your 2013 return, you can deduct fees paid in 2013 for preparing your 2012 return. Free state and federal e file These fees include the cost of tax preparation software programs and tax publications. Free state and federal e file They also include any fee you paid for electronic filing of your return. Free state and federal e file See Tax preparation fees under How To Report, later. Free state and federal e file Other Expenses You can deduct certain other expenses as miscellaneous itemized deductions subject to the 2%-of-adjusted-gross-income limit. Free state and federal e file On Schedule A (Form 1040), line 23, or Schedule A (Form 1040NR), line 9, you can deduct the ordinary and necessary expenses that you pay: To produce or collect income that must be included in your gross income, To manage, conserve, or maintain property held for producing such income, or To determine, contest, pay, or claim a refund of any tax. Free state and federal e file You can deduct expenses you pay for the purposes in (1) and (2) above only if they are reasonable and closely related to these purposes. Free state and federal e file These other expenses include the following items. Free state and federal e file Appraisal fees for a casualty loss or charitable contribution. Free state and federal e file Casualty and theft losses from property used in performing services as an employee. Free state and federal e file Clerical help and office rent in caring for investments. Free state and federal e file Depreciation on home computers used for investments. Free state and federal e file Excess deductions (including administrative expenses) allowed a beneficiary on termination of an estate or trust. Free state and federal e file Fees to collect interest and dividends. Free state and federal e file Hobby expenses, but generally not more than hobby income. Free state and federal e file Indirect miscellaneous deductions from pass-through entities. Free state and federal e file Investment fees and expenses. Free state and federal e file Legal fees related to producing or collecting taxable income or getting tax advice. Free state and federal e file Loss on deposits in an insolvent or bankrupt financial institution. Free state and federal e file Loss on traditional IRAs or Roth IRAs, when all amounts have been distributed to you. Free state and federal e file Repayments of income. Free state and federal e file Repayments of social security benefits. Free state and federal e file Safe deposit box rental, except for storing jewelry and other personal effects. Free state and federal e file Service charges on dividend reinvestment plans. Free state and federal e file Tax advice fees. Free state and federal e file Trustee's fees for your IRA, if separately billed and paid. Free state and federal e file If the expenses you pay produce income that is only partially taxable, see Tax-Exempt Income Expenses, later, under Nondeductible Expenses. Free state and federal e file Appraisal Fees You can deduct appraisal fees if you pay them to figure a casualty loss or the fair market value of donated property. Free state and federal e file Casualty and Theft Losses You can deduct a casualty or theft loss as a miscellaneous itemized deduction subject to the 2% limit if you used the damaged or stolen property in performing services as an employee. Free state and federal e file First report the loss in Section B of Form 4684, Casualties and Thefts. Free state and federal e file You may also have to include the loss on Form 4797, Sales of Business Property, if you are otherwise required to file that form. Free state and federal e file To figure your deduction, add all casualty or theft losses from this type of property included on Form 4684, lines 32 and 38b, or Form 4797, line 18a. Free state and federal e file For more information on casualty and theft losses, see Publication 547, Casualties, Disasters, and Thefts. Free state and federal e file Clerical Help and Office Rent You can deduct office expenses, such as rent and clerical help, that you have in connection with your investments and collecting the taxable income on them. Free state and federal e file Credit or Debit Card Convenience Fees You can deduct the convenience fee charged by the card processor for paying your income tax (including estimated tax payments) by credit or debit card. Free state and federal e file The fees are deductible on the return for the year in which you paid them. Free state and federal e file For example, fees charged to payments made in 2013 can be claimed on the 2013 tax return. Free state and federal e file Depreciation on Home Computer You can deduct depreciation on your home computer if you use it to produce income (for example, to manage your investments that produce taxable income). Free state and federal e file You generally must depreciate the computer using the straight line method over the Alternative Depreciation System (ADS) recovery period. Free state and federal e file But if you work as an employee and also use the computer in that work, see Depreciation on Computers under Unreimbursed Employee Expenses, earlier. Free state and federal e file For more information on depreciation, see Publication 946. Free state and federal e file Excess Deductions of an Estate If an estate's total deductions in its last tax year are more than its gross income for that year, the beneficiaries succeeding to the estate's property can deduct the excess. Free state and federal e file Do not include deductions for the estate's personal exemption and charitable contributions when figuring the estate's total deductions. Free state and federal e file The beneficiaries can claim the deduction only for the tax year in which, or with which, the estate terminates, whether the year of termination is a normal year or a short tax year. Free state and federal e file For more information, see Termination of Estate in Publication 559, Survivors, Executors, and Administrators. Free state and federal e file Fees To Collect Interest and Dividends You can deduct fees you pay to a broker, bank, trustee, or similar agent to collect your taxable bond interest or dividends on shares of stock. Free state and federal e file But you cannot deduct a fee you pay to a broker to buy investment property, such as stocks or bonds. Free state and federal e file You must add the fee to the cost of the property. Free state and federal e file You cannot deduct the fee you pay to a broker to sell securities. Free state and federal e file You can use the fee only to figure gain or loss from the sale. Free state and federal e file See the instructions for Schedule D (Form 1040) for information on how to report the fee. Free state and federal e file Hobby Expenses You can generally deduct hobby expenses, but only up to the amount of hobby income. Free state and federal e file A hobby is not a business because it is not carried on to make a profit. Free state and federal e file See Not-for-Profit Activities in chapter 1 of Publication 535. Free state and federal e file Indirect Deductions of Pass-Through Entities Pass-through entities include partnerships, S corporations, and mutual funds that are not publicly offered. Free state and federal e file Deductions of pass-through entities are passed through to the partners or shareholders. Free state and federal e file The partners or shareholders can deduct their share of passed-through deductions for investment expenses as miscellaneous itemized deductions subject to the 2% limit. Free state and federal e file Example. Free state and federal e file You are a member of an investment club that is formed solely to invest in securities. Free state and federal e file The club is treated as a partnership. Free state and federal e file The partnership's income is solely from taxable dividends, interest, and gains from sales of securities. Free state and federal e file In this case, you can deduct your share of the partnership's operating expenses as miscellaneous itemized deductions subject to the 2% limit. Free state and federal e file However, if the investment club partnership has investments that also produce nontaxable income, you cannot deduct your share of the partnership's expenses that produce the nontaxable income. Free state and federal e file Publicly offered mutual funds. Free state and federal e file   Publicly offered mutual funds do not pass deductions for investment expenses through to shareholders. Free state and federal e file A mutual fund is “publicly offered” if it is: Continuously offered pursuant to a public offering, Regularly traded on an established securities market, or Held by or for at least 500 persons at all times during the tax year. Free state and federal e file   A publicly offered mutual fund will send you a Form 1099-DIV, Dividends and Distributions, or a substitute form, showing the net amount of dividend income (gross dividends minus investment expenses). Free state and federal e file This net figure is the amount you report on your return as income. Free state and federal e file You cannot further deduct investment expenses related to publicly offered mutual funds because they are already included as part of the net income amount. Free state and federal e file Information returns. Free state and federal e file   You should receive information returns from pass-through entities. Free state and federal e file Partnerships and S corporations. Free state and federal e file   These entities issue Schedule K-1, which lists the items and amounts you must report, and identifies the tax return schedules and lines to use. Free state and federal e file Nonpublicly offered mutual funds. Free state and federal e file   These funds will send you a Form 1099-DIV, or a substitute form, showing your share of gross income and investment expenses. Free state and federal e file You can claim the expenses only as a miscellaneous itemized deduction subject to the 2% limit. Free state and federal e file Investment Fees and Expenses You can deduct investment fees, custodial fees, trust administration fees, and other expenses you paid for managing your investments that produce taxable income. Free state and federal e file Legal Expenses You can usually deduct legal expenses that you incur in attempting to produce or collect taxable income or that you pay in connection with the determination, collection, or refund of any tax. Free state and federal e file You can also deduct legal expenses that are: Related to either doing or keeping your job, such as those you paid to defend yourself against criminal charges arising out of your trade or business, For tax advice related to a divorce if the bill specifies how much is for tax advice and it is determined in a reasonable way, or To collect taxable alimony. Free state and federal e file You can deduct expenses of resolving tax issues relating to profit or loss from business (Schedule C or C-EZ), rentals or royalties (Schedule E), or farm income and expenses (Schedule F) on the appropriate schedule. Free state and federal e file You deduct expenses of resolving nonbusiness tax issues on Schedule A (Form 1040 or Form 1040NR). Free state and federal e file See Tax Preparation Fees, earlier. Free state and federal e file Unlawful discrimination claims. Free state and federal e file   You may be able to deduct, as an adjustment to income on Form 1040, line 36, or Form 1040NR, line 35, rather than as a miscellaneous itemized deduction, attorney fees and court costs for actions settled or decided after October 22, 2004, involving a claim of unlawful discrimination, a claim against the U. Free state and federal e file S. Free state and federal e file Government, or a claim made under section 1862(b)(3)(A) of the Social Security Act. Free state and federal e file However, the amount you can deduct on Form 1040, line 36, or Form 1040NR, line 35, is limited to the amount of the judgment or settlement you are including in income for the tax year. Free state and federal e file See Publication 525 for more information. Free state and federal e file Loss on Deposits A loss on deposits can occur when a bank, credit union, or other financial institution becomes insolvent or bankrupt. Free state and federal e file If you can reasonably estimate the amount of your loss on money you have on deposit in a financial institution that becomes insolvent or bankrupt, you can generally choose to deduct it in the current year even though its exact amount has not been finally determined. Free state and federal e file If elected, the casualty loss is subject to certain deduction limitations. Free state and federal e file The election is made on Form 4684. Free state and federal e file Once you make this choice, you cannot change it without IRS approval. Free state and federal e file If none of the deposit is federally insured, you can deduct the loss in either of the following ways. Free state and federal e file As an ordinary loss (as a miscellaneous itemized deduction subject to the 2% limit). Free state and federal e file Write the name of the financial institution and “Insolvent Financial Institution” beside the amount on Schedule A (Form 1040), line 23, or Schedule A (Form 1040NR), line 9. Free state and federal e file This deduction is limited to $20,000 ($10,000 if you are married filing separately) for each financial institution, reduced by any expected state insurance proceeds. Free state and federal e file As a casualty loss. Free state and federal e file Report it on Form 4684 first and then on Schedule A (Form 1040). Free state and federal e file See Publication 547 for details. Free state and federal e file As a nonbusiness bad debt. Free state and federal e file Report it on Schedule D (Form 1040). Free state and federal e file If any part of the deposit is federally insured, you can deduct the loss only as a casualty loss. Free state and federal e file Exception. Free state and federal e file   You cannot make this choice if you are a 1%-or-more-owner or an officer of the financial institution, or are related to such owner or officer. Free state and federal e file For a definition of “related,” see Deposit in Insolvent or Bankrupt Financial Institution in chapter 4 of Publication 550. Free state and federal e file Actual loss different from estimated loss. Free state and federal e file   If you make this choice and your actual loss is less than your estimated loss, you must include the excess in income. Free state and federal e file See Recoveries in Publication 525. Free state and federal e file If your actual loss is more than your estimated loss, treat the excess loss as explained under Choice not made, next. Free state and federal e file Choice not made. Free state and federal e file   If you do not make this choice (or if you have an excess actual loss after choosing to deduct your estimated loss), treat your loss (or excess loss) as a nonbusiness bad debt (deductible as a short-term capital loss) in the year its amount is finally determined. Free state and federal e file See Nonbusiness Bad Debts in chapter 4 of Publication 550. Free state and federal e file Loss on IRA If you have a loss on your traditional IRA (or Roth IRA) investment, you can deduct the loss as a miscellaneous itemized deduction subject to the 2% limit, but only when all the amounts in all your traditional IRA (or Roth IRA) accounts have been distributed to you and the total distributions are less than your unrecovered basis. Free state and federal e file For more information, see Publication 590, Individual Retirement Arrangements (IRAs). Free state and federal e file Repayments of Income If you had to repay an amount that you included in income in an earlier year, you may be able to deduct the amount you repaid. Free state and federal e file If the amount you had to repay was ordinary income of $3,000 or less, the deduction is subject to the 2% limit. Free state and federal e file If it was more than $3,000, see Repayments Under Claim of Right under Deductions Not Subject to the 2% Limit, later. Free state and federal e file Repayments of Social Security Benefits If the total of the amounts in box 5 (net benefits for 2013) of all your Forms SSA-1099, Social Security Benefit Statement, and Forms RRB-1099, Payments By the Railroad Retirement Board, is a negative figure (a figure in parentheses), you may be able to take a miscellaneous itemized deduction subject to the 2% limit. Free state and federal e file The amount you can deduct is the part of the negative figure that represents an amount you included in gross income in an earlier year. Free state and federal e file The amount in box 5 of Form SSA-1099 or RRB-1099 is the net amount of your benefits for the year. Free state and federal e file It will be a negative figure if the amount of benefits you repaid in 2013 (box 4) is more than the gross amount of benefits paid to you in 2013 (box 3). Free state and federal e file If the deduction is more than $3,000, you will have to use a special computation to figure your tax. Free state and federal e file See Publication 915, Social Security and Equivalent Railroad Retirement Benefits, for additional information. Free state and federal e file Safe Deposit Box Rent You can deduct safe deposit box rent if you use the box to store taxable income-producing stocks, bonds, or investment-related papers and documents. Free state and federal e file You cannot deduct the rent if you use the box only for jewelry, other personal items, or tax-exempt securities. Free state and federal e file Service Charges on Dividend Reinvestment Plans You can deduct service charges you pay as a subscriber in a dividend reinvestment plan. Free state and federal e file These service charges include payments for: Holding shares acquired through a plan, Collecting and reinvesting cash dividends, and Keeping individual records and providing detailed statements of accounts. Free state and federal e file Trustee's Administrative Fees for IRA Trustee's administrative fees that are billed separately and paid by you in connection with your IRA are deductible (if they are ordinary and necessary) as a miscellaneous itemized deduction subject to the 2% limit. Free state and federal e file Deductions Not Subject to the 2% Limit You can deduct the items listed below as miscellaneous itemized deductions. Free state and federal e file They are not subject to the 2% limit. Free state and federal e file Report these items on Schedule A (Form 1040), line 28, or Schedule A (Form 1040NR), line 14. Free state and federal e file List of Deductions Amortizable premium on taxable bonds. Free state and federal e file Casualty and theft losses from income-producing property. Free state and federal e file Federal estate tax on income in respect of a decedent. Free state and federal e file Gambling losses up to the amount of gambling winnings. Free state and federal e file Impairment-related work expenses of persons with disabilities. Free state and federal e file Loss from other activities from Schedule K-1 (Form 1065-B), box 2. Free state and federal e file Losses from Ponzi-type investment schemes. Free state and federal e file Repayments of more than $3,000 under a claim of right. Free state and federal e file Unrecovered investment in an annuity. Free state and federal e file Amortizable Premium on Taxable Bonds In general, if the amount you pay for a bond is greater than its stated principal amount, the excess is bond premium. Free state and federal e file You can elect to amortize the premium on taxable bonds. Free state and federal e file The amortization of the premium is generally an offset to interest income on the bond rather than a separate deduction item. Free state and federal e file Pre-1998 election to amortize bond premium. Free state and federal e file   Generally, if you first elected to amortize bond premium before 1998, the above treatment of the premium does not apply to bonds you acquired before 1988. Free state and federal e file Bonds acquired after October 22, 1986, and before 1988. Free state and federal e file   The amortization of the premium on these bonds is investment interest expense subject to the investment interest limit, unless you chose to treat it as an offset to interest income on the bond. Free state and federal e file Bonds acquired before October 23, 1986. Free state and federal e file   The amortization of the premium on these bonds is a miscellaneous itemized deduction not subject to the 2% limit. Free state and federal e file Deduction for excess premium. Free state and federal e file   On certain bonds (such as bonds that pay a variable rate of interest or that provide for an interest-free period), the amount of bond premium allocable to a period may exceed the amount of stated interest allocable to the period. Free state and federal e file If this occurs, treat the excess as a miscellaneous itemized deduction that is not subject to the 2% limit. Free state and federal e file However, the amount deductible is limited to the amount by which your total interest inclusions on the bond in prior periods exceed the total amount you treated as a bond premium deduction on the bond in prior periods. Free state and federal e file If any of the excess bond premium cannot be deducted because of the limit, this amount is carried forward to the next period and is treated as bond premium allocable to that period. Free state and federal e file    Pre-1998 choice to amortize bond premium. Free state and federal e file If you made the choice to amortize the premium on taxable bonds before 1998, you can deduct the bond premium amortization that is more than your interest income only for bonds acquired during 1998 and later years. Free state and federal e file More information. Free state and federal e file    For more information on bond premium, see Bond Premium Amortization in chapter 3 of Publication 550. Free state and federal e file Casualty and Theft Losses of Income-Producing Property You can deduct a casualty or theft loss as a miscellaneous itemized deduction not subject to the 2% limit if the damaged or stolen property was income-producing property (property held for investment, such as stocks, notes, bonds, gold, silver, vacant lots, and works of art). Free state and federal e file First report the loss in Section B of Form 4684. Free state and federal e file You may also have to include the loss on Form 4797, Sales of Business Property, if you are otherwise required to file that form. Free state and federal e file To figure your deduction, add all casualty or theft losses from this type of property included on Form 4684, lines 32 and 38b, or Form 4797, line 18a. Free state and federal e file For more information on casualty and theft losses, see Publication 547. Free state and federal e file Federal Estate Tax on Income in Respect of a Decedent You can deduct the federal estate tax attributable to income in respect of a decedent that you as a beneficiary include in your gross income. Free state and federal e file Income in respect of the decedent is gross income that the decedent would have received had death not occurred and that was not properly includible in the decedent's final income tax return. Free state and federal e file See Publication 559 for information about figuring the amount of this deduction. Free state and federal e file Gambling Losses Up to the Amount of Gambling Winnings You must report the full amount of your gambling winnings for the year on Form 1040, line 21. Free state and federal e file You deduct your gambling losses for the year on Schedule A (Form 1040), line 28. Free state and federal e file You cannot deduct gambling losses that are more than your winnings. Free state and federal e file Generally, nonresident aliens cannot deduct gambling losses on Schedule A (Form 1040NR). Free state and federal e file You cannot reduce your gambling winnings by your gambling losses and report the difference. Free state and federal e file You must report the full amount of your winnings as income and claim your losses (up to the amount of winnings) as an itemized deduction. Free state and federal e file Therefore, your records should show your winnings separately from your losses. Free state and federal e file Diary of winnings and losses. Free state and federal e file You must keep an accurate diary or similar record of your losses and winnings. Free state and federal e file Your diary should contain at least the following information. Free state and federal e file The date and type of your specific wager or wagering activity. Free state and federal e file The name and address or location of the gambling establishment. Free state and federal e file The names of other persons present with you at the gambling establishment. Free state and federal e file The amount(s) you won or lost. Free state and federal e file Proof of winnings and losses. Free state and federal e file   In addition to your diary, you should also have other documentation. Free state and federal e file You can generally prove your winnings and losses through Form W-2G, Certain Gambling Winnings, Form 5754, Statement by Person(s) Receiving Gambling Winnings, wagering tickets, canceled checks, substitute checks, credit records, bank withdrawals, and statements of actual winnings or payment slips provided to you by the gambling establishment. Free state and federal e file   For specific wagering transactions, you can use the following items to support your winnings and losses. Free state and federal e file    These recordkeeping suggestions are intended as general guidelines to help you establish your winnings and losses. Free state and federal e file They are not all-inclusive. Free state and federal e file Your tax liability depends on your particular facts and circumstances. Free state and federal e file Keno. Free state and federal e file   Copies of the keno tickets you purchased that were validated by the gambling establishment, copies of your casino credit records, and copies of your casino check cashing records. Free state and federal e file Slot machines. Free state and federal e file   A record of the machine number and all winnings by date and time the machine was played. Free state and federal e file Table games (twenty-one (blackjack), craps, poker, baccarat, roulette, wheel of fortune, etc. Free state and federal e file ). Free state and federal e file   The number of the table at which you were playing. Free state and federal e file Casino credit card data indicating whether the credit was issued in the pit or at the cashier's cage. Free state and federal e file Bingo. Free state and federal e file   A record of the number of games played, cost of tickets purchased, and amounts collected on winning tickets. Free state and federal e file Supplemental records include any receipts from the casino, parlor, etc. Free state and federal e file Racing (horse, harness, dog, etc. Free state and federal e file ). Free state and federal e file   A record of the races, amounts of wagers, amounts collected on winning tickets, and amounts lost on losing tickets. Free state and federal e file Supplemental records include unredeemed tickets and payment records from the racetrack. Free state and federal e file Lotteries. Free state and federal e file   A record of ticket purchases, dates, winnings, and losses. Free state and federal e file Supplemental records include unredeemed tickets, payment slips, and winnings statements. Free state and federal e file Impairment-Related Work Expenses If you have a physical or mental disability that limits your being employed, or substantially limits one or more of your major life activities, such as performing manual tasks, walking, speaking, breathing, learning, and working, you can deduct your impairment-related work expenses. Free state and federal e file Impairment-related work expenses are ordinary and necessary business expenses for attendant care services at your place of work and other expenses in connection with your place of work that are necessary for you to be able to work. Free state and federal e file Example. Free state and federal e file You are blind. Free state and federal e file You must use a reader to do your work. Free state and federal e file 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. Free state and federal e file The reader's services are only for your work. Free state and federal e file You can deduct your expenses for the reader as impairment-related work expenses. Free state and federal e file Self-employed. Free state and federal e file   If you are self-employed, enter your impairment-related work expenses on the appropriate form (Schedule C, C-EZ, E, or F) used to report your business income and expenses. Free state and federal e file See Impairment-related work expenses. Free state and federal e file , later under How To Report. Free state and federal e file Loss From Other Activities From Schedule K-1 (Form 1065-B), Box 2 If the amount reported in Schedule K-1 (Form 1065-B), box 2, is a loss, report it on Schedule A (Form 1040), line 28, or Schedule A (Form 1040NR), line 14 (only if effectively connected with a U. Free state and federal e file S. Free state and federal e file trade or business). Free state and federal e file It is not subject to the passive activity limitations. Free state and federal e file Officials Paid on a Fee Basis If you are a fee-basis official, you can claim your expenses in performing services in that job as an adjustment to income rather than as a miscellaneous itemized deduction. Free state and federal e file See Publication 463 for more information. Free state and federal e file Performing Artists If you are a qualified performing artist, you can deduct your employee business expenses as an adjustment to income rather than as a miscellaneous itemized deduction. Free state and federal e file If you are an employee, complete Form 2106 or Form 2106-EZ. Free state and federal e file See Publication 463 for more information. Free state and federal e file Losses From Ponzi-type Investment Schemes These losses are deductible as theft losses of income-producing property on your tax return for the year the loss was discovered. Free state and federal e file You figure the deductible loss in Section B of Form 4684. Free state and federal e file However, if you qualify to use Revenue Procedure 2009-20 (as modified by Revenue Procedure 2011-58) and you choose to follow the procedures in the guidance, complete Section C of Form 4684 before completing Section B. Free state and federal e file Section C of Form 4684 replaces Appendix A in Revenue Procedure 2009-20. Free state and federal e file You do not need to complete Appendix A. Free state and federal e file See the Form 4684 instructions and Publication 547, Casualties, Disasters, and Thefts, for more information. Free state and federal e file Repayments Under Claim of Right If you had to repay more than $3,000 that you included in your income in an earlier year because at the time you thought you had an unrestricted right to it, you may be able to deduct the amount you repaid, or take a credit against your tax. Free state and federal e file See Repayments in Publication 525 for more information. Free state and federal e file Unrecovered Investment in Annuity A retiree who contributed to the cost of an annuity can exclude from income a part of each payment received as a tax-free return of the retiree's investment. Free state and federal e file If the retiree dies before the entire investment is recovered tax free, any unrecovered investment can be deducted on the retiree's final income tax return. Free state and federal e file See Publication 575, Pension and Annuity Income, for more information about the tax treatment of pensions and annuities. Free state and federal e file Nondeductible Expenses You cannot deduct the following expenses. Free state and federal e file List of Nondeductible Expenses Adoption expenses. Free state and federal e file Broker's commissions. Free state and federal e file Burial or funeral expenses, including the cost of a cemetery lot. Free state and federal e file Campaign expenses. Free state and federal e file Capital expenses. Free state and federal e file Check-writing fees. Free state and federal e file Club dues. Free state and federal e file Commuting expenses. Free state and federal e file Fees and licenses, such as car licenses, marriage licenses, and dog tags. Free state and federal e file Fines and penalties, such as parking tickets. Free state and federal e file Health spa expenses. Free state and federal e file Hobby losses—but see Hobby Expenses, earlier. Free state and federal e file Home repairs, insurance, and rent. Free state and federal e file Home security system. Free state and federal e file Illegal bribes and kickbacks—see Bribes and kickbacks in chapter 11 of Publication 535. Free state and federal e file Investment-related seminars. Free state and federal e file Life insurance premiums paid by the insured. Free state and federal e file Lobbying expenses. Free state and federal e file Losses from the sale of your home, furniture, personal car, etc. Free state and federal e file Lost or misplaced cash or property. Free state and federal e file Lunches with co-workers. Free state and federal e file Meals while working late. Free state and federal e file Medical expenses as business expenses other than medical examinations required by your employer. Free state and federal e file Personal disability insurance premiums. Free state and federal e file Personal legal expenses. Free state and federal e file Personal, living, or family expenses. Free state and federal e file Political contributions. Free state and federal e file Professional accreditation fees. Free state and federal e file Professional reputation, expenses to improve. Free state and federal e file Relief fund contributions. Free state and federal e file Residential telephone line. Free state and federal e file Stockholders' meeting, expenses of attending. Free state and federal e file Tax-exempt income, expenses of earning or collecting. Free state and federal e file The value of wages never received or lost vacation time. Free state and federal e file Travel expenses for another individual. Free state and federal e file Voluntary unemployment benefit fund contributions. Free state and federal e file Wristwatches. Free state and federal e file Adoption Expenses You cannot deduct the expenses of adopting a child but you may be able to take a credit for those expenses. Free state and federal e file For details, see Form 8839, Qualified Adoption Expenses. Free state and federal e file Commissions Commissions paid on the purchase of securities are not deductible, either as business or nonbusiness expenses. Free state and federal e file Instead, these fees must be added to the taxpayer's cost of the securities. Free state and federal e file Commissions paid on the sale are deductible as business expenses only by dealers. Free state and federal e file Campaign Expenses You cannot deduct campaign expenses of a candidate for any office, even if the candidate is running for reelection to the office. Free state and federal e file These include qualification and registration fees for primary elections. Free state and federal e file Legal fees. Free state and federal e file   You cannot deduct legal fees paid to defend charges that arise from participation in a political campaign. Free state and federal e file Capital Expenses You cannot currently deduct amounts paid to buy property that has a useful life substantially beyond the tax year or amounts paid to increase the value or prolong the life of property. Free state and federal e file If you use such property in your work, you may be able to take a depreciation deduction. Free state and federal e file See Publication 946. Free state and federal e file If the property is a car used in your work, also see Publication 463. Free state and federal e file Check-Writing Fees on Personal Account If you have a personal checking account, you cannot deduct fees charged by the bank for the privilege of writing checks, even if the account pays interest. Free state and federal e file Club Dues Generally, you cannot deduct the cost of membership in any club organized for business, pleasure, recreation, or other social purpose. Free state and federal e file This includes business, social, athletic, luncheon, sporting, airline, hotel, golf, and country clubs. Free state and federal e file You cannot deduct dues paid to an organization if one of its main purposes is to: Conduct entertainment activities for members or their guests, or Provide members or their guests with access to entertainment facilities. Free state and federal e file Dues paid to airline, hotel, and luncheon clubs are not deductible. Free state and federal e file Commuting Expenses You cannot deduct commuting expenses (the cost of transportation between your home and your main or regular place of work). Free state and federal e file If you haul tools, instruments, or other items in your car to and from work, you can deduct only the additional cost of hauling the items, such as the rent on a trailer to carry the items. Free state and federal e file Fines or Penalties You cannot deduct fines or penalties you pay to a governmental unit for violating a law. Free state and federal e file This includes an amount paid in settlement of your actual or potential liability for a fine or penalty (civil or criminal). Free state and federal e file Fines or penalties include parking tickets, tax penalties, and penalties deducted from teachers' paychecks after an illegal strike. Free state and federal e file Health Spa Expenses You cannot deduct health spa expenses, even if there is a job requirement to stay in excellent physical condition, such as might be required of a law enforcement officer. Free state and federal e file Home Security System You cannot deduct the cost of a home security system as a miscellaneous deduction. Free state and federal e file However, you may be able to claim a deduction for a home security system as a business expense if you have a home office. Free state and federal e file See Home Office under Unreimbursed Employee Expenses, earlier, and Publication 587. Free state and federal e file Investment-Related Seminars You cannot deduct any expenses for attending a convention, seminar, or similar meeting for investment purposes. Free state and federal e file Life Insurance Premiums You cannot deduct premiums you pay on your life insurance. Free state and federal e file You may be able to deduct, as alimony, premiums you pay on life insurance policies assigned to your former spouse. Free state and federal e file See Publication 504, Divorced or Separated Individuals, for information on alimony. Free state and federal e file Lobbying Expenses You generally cannot deduct amounts paid or incurred for lobbying expenses. Free state and federal e file These include expenses to: Influence legislation, Participate, or intervene, in any political campaign for, or against, any candidate for public office, Attempt to influence the general public, or segments of the public, about elections, legislative matters, or referendums, or Communicate directly with covered executive branch officials in any attempt to influence the official actions or positions of those officials. Free state and federal e file Lobbying expenses also include any amounts paid or incurred for research, preparation, planning, or coordination of any of these activities. Free state and federal e file Covered executive branch official. Free state and federal e file   A covered executive branch official, for the purpose of (4) above, is any of the following officials. Free state and federal e file The President. Free state and federal e file The Vice President. Free state and federal e file Any officer or employee of the White House Office of the Executive Office of the President, and the two most senior level officers of each of the other agencies in the Executive Office. Free state and federal e file Any individual serving in a position in Level I of the Executive Schedule under section 5312 of Title 5, United States Code, any other individual designated by the President as having Cabinet-level status, and any immediate deputy of one of these individuals. Free state and federal e file Dues used for lobbying. Free state and federal e file   If a tax-exempt organization notifies you that part of the dues or other amounts you pay to the organization are used to pay nondeductible lobbying expenses, you cannot deduct that part. Free state and federal e file Exceptions. Free state and federal e file   You can deduct certain lobbying expenses if they are ordinary and necessary expenses of carrying on your trade or business. Free state and federal e file You can deduct expenses for attempting to influence the legislation of any local council or similar governing body (local legislation). Free state and federal e file An Indian tribal government is considered a local council or similar governing body. Free state and federal e file You can deduct in-house expenses for influencing legislation or communicating directly with a covered executive branch official if the expenses for the tax year are not more than $2,000 (not counting overhead expenses). Free state and federal e file If you are a professional lobbyist, you can deduct the expenses you incur in the trade or business of lobbying on behalf of another person. Free state and federal e file Payments by the other person to you for lobbying activities cannot be deducted. Free state and federal e file Lost or Mislaid Cash or Property You cannot deduct a loss based on the mere disappearance of money or property. Free state and federal e file However, an accidental loss or disappearance of property can qualify as a casualty if it results from an identifiable event that is sudden, unexpected, or unusual. Free state and federal e file See Publication 547. Free state and federal e file Example. Free state and federal e file A car door is accidentally slammed on your hand, breaking the setting of your diamond ring. Free state and federal e file The diamond falls from the ring and is never found. Free state and federal e file The loss of the diamond is a casualty. Free state and federal e file Lunches With Co-workers You cannot deduct the expenses of lunches with co-workers, except while traveling away from home on business. Free state and federal e file See Publication 463 for information on deductible expenses while traveling away from home. Free state and federal e file Meals While Working Late You cannot deduct the cost of meals while working late. Free state and federal e file However, you may be able to claim a deduction if the cost of the meals is a deductible entertainment expense, or if you are traveling away from home. Free state and federal e file See Publication 463 for information on deductible entertainment expenses and expenses while traveling away from home. Free state and federal e file Personal Legal Expenses You cannot deduct personal legal expenses such as those for the following. Free state and federal e file Custody of children. Free state and federal e file Breach of promise to marry suit. Free state and federal e file Civil or criminal charges resulting from a personal relationship. Free state and federal e file Damages for personal injury (except certain whistleblower claims and unlawful discrimination claims). Free state and federal e file For more information about unlawful discrimination claims, see Deductions Subject to the 2% Limit, earlier. Free state and federal e file Preparation of a title (or defense or perfection of a title). Free state and federal e file Preparation of a will. Free state and federal e file Property claims or property settlement in a divorce. Free state and federal e file You cannot deduct these expenses even if a result of the legal proceeding is the loss of income-producing property. Free state and federal e file Political Contributions You cannot deduct contributions made to a political candidate, a campaign committee, or a newsletter fund. Free state and federal e file Advertisements in convention bulletins and admissions to dinners or programs that benefit a political party or political candidate are not deductible. Free state and federal e file Professional Accreditation Fees You cannot deduct professional accreditation fees such as the following. Free state and federal e file Accounting certificate fees paid for the initial right to practice accounting. Free state and federal e file Bar exam fees and incidental expenses in securing initial admission to the bar. Free state and federal e file Medical and dental license fees paid to get initial licensing. Free state and federal e file Professional Reputation You cannot deduct expenses of radio and TV appearances to increase your personal prestige or establish your professional reputation. Free state and federal e file Relief Fund Contributions You cannot deduct contributions paid to a private plan that pays benefits to any covered employee who cannot work because of any injury or illness not related to the job. Free state and federal e file Residential Telephone Service You cannot deduct any charge (including taxes) for basic local telephone service for the first telephone line to your residence, even if it is used in a trade or business. Free state and federal e file Stockholders' Meetings You cannot deduct transportation and other expenses you pay to attend stockholders' meetings of companies in which you own stock but have no other interest. Free state and federal e file You cannot deduct these expenses even if you are attending the meeting to get information that would be useful in making further investments. Free state and federal e file Tax-Exempt Income Expenses You cannot deduct expenses to produce tax-exempt income. Free state and federal e file You cannot deduct interest on a debt incurred or continued to buy or carry tax-exempt securities. Free state and federal e file If you have expenses to p