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Amended Tax Form 2011

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Amended Tax Form 2011

Amended tax form 2011 Publication 502 - Main Content Table of Contents What Are Medical Expenses? What Expenses Can You Include This Year?Community property states. Amended tax form 2011 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. Amended tax form 2011 These expenses include payments for legal medical services rendered by physicians, surgeons, dentists, and other medical practitioners. Amended tax form 2011 They include the costs of equipment, supplies, and diagnostic devices needed for these purposes. Amended tax form 2011 Medical care expenses must be primarily to alleviate or prevent a physical or mental defect or illness. Amended tax form 2011 They do not include expenses that are merely beneficial to general health, such as vitamins or a vacation. Amended tax form 2011 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. Amended tax form 2011 Medical expenses also include amounts paid for qualified long-term care services and limited amounts paid for any qualified long-term care insurance contract. Amended tax form 2011 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. Amended tax form 2011 (But see Decedent under Whose Medical Expenses Can You Include, for an exception. Amended tax form 2011 ) If you pay medical expenses by check, the day you mail or deliver the check generally is the date of payment. Amended tax form 2011 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. Amended tax form 2011 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. Amended tax form 2011 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. Amended tax form 2011 S. Amended tax form 2011 Individual Income Tax Return, for the year in which you overlooked the expense. Amended tax form 2011 Do not claim the expense on this year's return. Amended tax form 2011 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. Amended tax form 2011 You cannot include medical expenses that were paid by insurance companies or other sources. Amended tax form 2011 This is true whether the payments were made directly to you, to the patient, or to the provider of the medical services. Amended tax form 2011 Separate returns. Amended tax form 2011   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. Amended tax form 2011 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. Amended tax form 2011 Community property states. Amended tax form 2011   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. Amended tax form 2011 Generally, each of you should include half the expenses. Amended tax form 2011 If medical expenses are paid out of the separate funds of one individual, only the individual who paid the medical expenses can include them. Amended tax form 2011 If you live in a community property state and are not filing a joint return, see Publication 555, Community Property. Amended tax form 2011 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. Amended tax form 2011 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. Amended tax form 2011 5% of your AGI. Amended tax form 2011 Example. Amended tax form 2011 You are unmarried and were born after January 2, 1949, and your AGI is $40,000, 10% of which is $4,000. Amended tax form 2011 You paid medical expenses of $2,500. Amended tax form 2011 You cannot deduct any of your medical expenses because they are not more than 10% of your AGI. Amended tax form 2011 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. Amended tax form 2011 There are different rules for decedents and for individuals who are the subject of multiple support agreements. Amended tax form 2011 See Support claimed under a multiple support agreement , later under Qualifying Relative. Amended tax form 2011 Spouse You can include medical expenses you paid for your spouse. Amended tax form 2011 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. Amended tax form 2011 Example 1. Amended tax form 2011 Mary received medical treatment before she married Bill. Amended tax form 2011 Bill paid for the treatment after they married. Amended tax form 2011 Bill can include these expenses in figuring his medical expense deduction even if Bill and Mary file separate returns. Amended tax form 2011 If Mary had paid the expenses, Bill could not include Mary's expenses in his separate return. Amended tax form 2011 Mary would include the amounts she paid during the year in her separate return. Amended tax form 2011 If they filed a joint return, the medical expenses both paid during the year would be used to figure their medical expense deduction. Amended tax form 2011 Example 2. Amended tax form 2011 This year, John paid medical expenses for his wife Louise, who died last year. Amended tax form 2011 John married Belle this year and they file a joint return. Amended tax form 2011 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. Amended tax form 2011 Dependent You can include medical expenses you paid for your dependent. Amended tax form 2011 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. Amended tax form 2011 A person generally qualifies as your dependent for purposes of the medical expense deduction if both of the following requirements are met. Amended tax form 2011 The person was a qualifying child (defined later) or a qualifying relative (defined later), and The person was a U. Amended tax form 2011 S. Amended tax form 2011 citizen or national or a resident of the United States, Canada, or Mexico. Amended tax form 2011 If your qualifying child was adopted, see Exception for adopted child , later. Amended tax form 2011 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. Amended tax form 2011 Exception for adopted child. Amended tax form 2011   If you are a U. Amended tax form 2011 S. Amended tax form 2011 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. Amended tax form 2011 S. Amended tax form 2011 citizen or national, or a resident of the United States, Canada, or Mexico. Amended tax form 2011 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. Amended tax form 2011 Adopted child. Amended tax form 2011   A legally adopted child is treated as your own child. Amended tax form 2011 This child includes a child lawfully placed with you for legal adoption. Amended tax form 2011   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. Amended tax form 2011   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. Amended tax form 2011   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. Amended tax form 2011    You may be able to take a credit for other expenses related to an adoption. Amended tax form 2011 See the Instructions for Form 8839, Qualified Adoption Expenses, for more information. Amended tax form 2011 Child of divorced or separated parents. Amended tax form 2011   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. Amended tax form 2011 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. Amended tax form 2011 This does not apply if the child's exemption is being claimed under a multiple support agreement (discussed later). Amended tax form 2011 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. Amended tax form 2011 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. Amended tax form 2011 Support claimed under a multiple support agreement. Amended tax form 2011   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. Amended tax form 2011 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. Amended tax form 2011   Any medical expenses paid by others who joined you in the agreement cannot be included as medical expenses by anyone. Amended tax form 2011 However, you can include the entire unreimbursed amount you paid for medical expenses. Amended tax form 2011 Example. Amended tax form 2011 You and your three brothers each provide one-fourth of your mother's total support. Amended tax form 2011 Under a multiple support agreement, you treat your mother as your dependent. Amended tax form 2011 You paid all of her medical expenses. Amended tax form 2011 Your brothers repaid you for three-fourths of these expenses. Amended tax form 2011 In figuring your medical expense deduction, you can include only one-fourth of your mother's medical expenses. Amended tax form 2011 Your brothers cannot include any part of the expenses. Amended tax form 2011 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. Amended tax form 2011 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. Amended tax form 2011 This includes expenses for the decedent's spouse and dependents as well as for the decedent. Amended tax form 2011 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. Amended tax form 2011 The expenses must be paid within the 1-year period beginning with the day after the date of death. Amended tax form 2011 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. Amended tax form 2011 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. Amended tax form 2011 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. Amended tax form 2011 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. Amended tax form 2011 Example. Amended tax form 2011 John properly filed his 2012 income tax return. Amended tax form 2011 He died in 2013 with unpaid medical expenses of $1,500 from 2012 and $1,800 in 2013. Amended tax form 2011 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. Amended tax form 2011 The $1,800 of medical expenses from 2013 can be included on the decedent's final return for 2013. Amended tax form 2011 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. Amended tax form 2011 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. Amended tax form 2011 What Medical Expenses Are Includible? Following is a list of items that you can include in figuring your medical expense deduction. Amended tax form 2011 The items are listed in alphabetical order. Amended tax form 2011 This list does not include all possible medical expenses. Amended tax form 2011 To determine if an expense not listed can be included in figuring your medical expense deduction, see What Are Medical Expenses , earlier. Amended tax form 2011 Abortion You can include in medical expenses the amount you pay for a legal abortion. Amended tax form 2011 Acupuncture You can include in medical expenses the amount you pay for acupuncture. Amended tax form 2011 Alcoholism You can include in medical expenses amounts you pay for an inpatient's treatment at a therapeutic center for alcohol addiction. Amended tax form 2011 This includes meals and lodging provided by the center during treatment. Amended tax form 2011 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. Amended tax form 2011 Ambulance You can include in medical expenses amounts you pay for ambulance service. Amended tax form 2011 Annual Physical Examination See Physical Examination , later. Amended tax form 2011 Artificial Limb You can include in medical expenses the amount you pay for an artificial limb. Amended tax form 2011 Artificial Teeth You can include in medical expenses the amount you pay for artificial teeth. Amended tax form 2011 Bandages You can include in medical expenses the cost of medical supplies such as bandages. Amended tax form 2011 Birth Control Pills You can include in medical expenses the amount you pay for birth control pills prescribed by a doctor. Amended tax form 2011 Body Scan You can include in medical expenses the cost of an electronic body scan. Amended tax form 2011 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. Amended tax form 2011 Breast Pumps and Supplies You can include in medical expenses the cost of breast pumps and supplies that assist lactation. Amended tax form 2011 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. Amended tax form 2011 See Cosmetic Surgery , later. Amended tax form 2011 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. Amended tax form 2011 The cost of permanent improvements that increase the value of your property may be partly included as a medical expense. Amended tax form 2011 The cost of the improvement is reduced by the increase in the value of your property. Amended tax form 2011 The difference is a medical expense. Amended tax form 2011 If the value of your property is not increased by the improvement, the entire cost is included as a medical expense. Amended tax form 2011 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. Amended tax form 2011 These improvements include, but are not limited to, the following items. Amended tax form 2011 Constructing entrance or exit ramps for your home. Amended tax form 2011 Widening doorways at entrances or exits to your home. Amended tax form 2011 Widening or otherwise modifying hallways and interior doorways. Amended tax form 2011 Installing railings, support bars, or other modifications to bathrooms. Amended tax form 2011 Lowering or modifying kitchen cabinets and equipment. Amended tax form 2011 Moving or modifying electrical outlets and fixtures. Amended tax form 2011 Installing porch lifts and other forms of lifts (but elevators generally add value to the house). Amended tax form 2011 Modifying fire alarms, smoke detectors, and other warning systems. Amended tax form 2011 Modifying stairways. Amended tax form 2011 Adding handrails or grab bars anywhere (whether or not in bathrooms). Amended tax form 2011 Modifying hardware on doors. Amended tax form 2011 Modifying areas in front of entrance and exit doorways. Amended tax form 2011 Grading the ground to provide access to the residence. Amended tax form 2011 Only reasonable costs to accommodate a home to a disabled condition are considered medical care. Amended tax form 2011 Additional costs for personal motives, such as for architectural or aesthetic reasons, are not medical expenses. Amended tax form 2011 Capital expense worksheet. Amended tax form 2011   Use Worksheet A to figure the amount of your capital expense to include in your medical expenses. Amended tax form 2011 Worksheet A. Amended tax form 2011 Capital Expense Worksheet Instructions: Use this worksheet to figure the amount, if any, of your medical expenses due to a home improvement. Amended tax form 2011 1. Amended tax form 2011 Enter the amount you paid for the home improvement 1. Amended tax form 2011   2. Amended tax form 2011 Enter the value of your home immediately after the improvement 2. Amended tax form 2011       3. Amended tax form 2011 Enter the value of your home immediately before the improvement 3. Amended tax form 2011       4. Amended tax form 2011 Subtract line 3 from line 2. Amended tax form 2011 This is the increase in the value of your home due to the improvement 4. Amended tax form 2011     • If line 4 is more than or equal to line 1, you have no medical expenses due to the home improvement; stop here. Amended tax form 2011       • If line 4 is less than line 1, go to line 5. Amended tax form 2011     5. Amended tax form 2011 Subtract line 4 from line 1. Amended tax form 2011 These are your medical expenses due to the home improvement 5. Amended tax form 2011   Operation and upkeep. Amended tax form 2011   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. Amended tax form 2011 This rule applies even if none or only part of the original cost of the capital asset qualified as a medical care expense. Amended tax form 2011 Improvements to property rented by a person with a disability. Amended tax form 2011   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. Amended tax form 2011 Example. Amended tax form 2011 John has arthritis and a heart condition. Amended tax form 2011 He cannot climb stairs or get into a bathtub. Amended tax form 2011 On his doctor's advice, he installs a bathroom with a shower stall on the first floor of his two-story rented house. Amended tax form 2011 The landlord did not pay any of the cost of buying and installing the special plumbing and did not lower the rent. Amended tax form 2011 John can include in medical expenses the entire amount he paid. Amended tax form 2011 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. Amended tax form 2011 Special design. Amended tax form 2011   You can include in medical expenses the difference between the cost of a regular car and a car specially designed to hold a wheelchair. Amended tax form 2011 Cost of operation. Amended tax form 2011   The includible costs of using a car for medical reasons are explained under Transportation , later. Amended tax form 2011 Chiropractor You can include in medical expenses fees you pay to a chiropractor for medical care. Amended tax form 2011 Christian Science Practitioner You can include in medical expenses fees you pay to Christian Science practitioners for medical care. Amended tax form 2011 Contact Lenses You can include in medical expenses amounts you pay for contact lenses needed for medical reasons. Amended tax form 2011 You can also include the cost of equipment and materials required for using contact lenses, such as saline solution and enzyme cleaner. Amended tax form 2011 See Eyeglasses and Eye Surgery , later. Amended tax form 2011 Crutches You can include in medical expenses the amount you pay to buy or rent crutches. Amended tax form 2011 Dental Treatment You can include in medical expenses the amounts you pay for the prevention and alleviation of dental disease. Amended tax form 2011 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. Amended tax form 2011 Treatment to alleviate dental disease include services of a dentist for procedures such as X-rays, fillings, braces, extractions, dentures, and other dental ailments. Amended tax form 2011 But see Teeth Whitening under What Expenses Are Not Includible, later. Amended tax form 2011 Diagnostic Devices You can include in medical expenses the cost of devices used in diagnosing and treating illness and disease. Amended tax form 2011 Example. Amended tax form 2011 You have diabetes and use a blood sugar test kit to monitor your blood sugar level. Amended tax form 2011 You can include the cost of the blood sugar test kit in your medical expenses. Amended tax form 2011 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. Amended tax form 2011 (See Publication 503, Child and Dependent Care Expenses. Amended tax form 2011 ) 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. Amended tax form 2011 Drug Addiction You can include in medical expenses amounts you pay for an inpatient's treatment at a therapeutic center for drug addiction. Amended tax form 2011 This includes meals and lodging at the center during treatment. Amended tax form 2011 Drugs See Medicines , later. Amended tax form 2011 Eye Exam You can include in medical expenses the amount you pay for eye examinations. Amended tax form 2011 Eyeglasses You can include in medical expenses amounts you pay for eyeglasses and contact lenses needed for medical reasons. Amended tax form 2011 See Contact Lenses , earlier, for more information. Amended tax form 2011 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. Amended tax form 2011 Fertility Enhancement You can include in medical expenses the cost of the following procedures to overcome an inability to have children. Amended tax form 2011 Procedures such as in vitro fertilization (including temporary storage of eggs or sperm). Amended tax form 2011 Surgery, including an operation to reverse prior surgery that prevented the person operated on from having children. Amended tax form 2011 Founder's Fee See Lifetime Care—Advance Payments , later. Amended tax form 2011 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. Amended tax form 2011 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. Amended tax form 2011 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. Amended tax form 2011 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. Amended tax form 2011 These amounts are treated as medical insurance premiums. Amended tax form 2011 See Insurance Premiums , later. Amended tax form 2011 Hearing Aids You can include in medical expenses the cost of a hearing aid and batteries, repairs, and maintenance needed to operate it. Amended tax form 2011 Home Care See Nursing Services , later. Amended tax form 2011 Home Improvements See Capital Expenses , earlier. Amended tax form 2011 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. Amended tax form 2011 This includes amounts paid for meals and lodging. Amended tax form 2011 Also see Lodging , later. Amended tax form 2011 Insurance Premiums You can include in medical expenses insurance premiums you pay for policies that cover medical care. Amended tax form 2011 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). Amended tax form 2011 See Qualified Long-Term Care Insurance Contracts under Long-Term Care, later. Amended tax form 2011 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. Amended tax form 2011 The cost of the medical part must be separately stated in the insurance contract or given to you in a separate statement. Amended tax form 2011 Health coverage tax credit. Amended tax form 2011   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. Amended tax form 2011 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. Amended tax form 2011 S. Amended tax form 2011 Treasury–HCTC,” or Any health coverage tax credit advance payments shown on Form 1099-H, Health Coverage Tax Credit (HCTC) Advance Payments. Amended tax form 2011 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. Amended tax form 2011 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. Amended tax form 2011 Example. Amended tax form 2011 You are a federal employee participating in the premium conversion plan of the Federal Employee Health Benefits (FEHB) program. Amended tax form 2011 Your share of the FEHB premium is paid by making a pre-tax reduction in your salary. Amended tax form 2011 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. Amended tax form 2011 Long-term care services. Amended tax form 2011   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. Amended tax form 2011 This amount will be reported as wages on your Form W-2. Amended tax form 2011 Retired public safety officers. Amended tax form 2011   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. Amended tax form 2011 This applies only to distributions that would otherwise be included in income. Amended tax form 2011 Health reimbursement arrangement (HRA). Amended tax form 2011   If you have medical expenses that are reimbursed by a health reimbursement arrangement, you cannot include those expenses in your medical expenses. Amended tax form 2011 This is because an HRA is funded solely by the employer. Amended tax form 2011 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. Amended tax form 2011 The payroll tax paid for Medicare A is not a medical expense. Amended tax form 2011 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. Amended tax form 2011 In this situation you can include the premiums you paid for Medicare A as a medical expense. Amended tax form 2011 Medicare B Medicare B is a supplemental medical insurance. Amended tax form 2011 Premiums you pay for Medicare B are a medical expense. Amended tax form 2011 Check the information you received from the Social Security Administration to find out your premium. Amended tax form 2011 Medicare D Medicare D is a voluntary prescription drug insurance program for persons with Medicare A or B. Amended tax form 2011 You can include as a medical expense premiums you pay for Medicare D. Amended tax form 2011 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). Amended tax form 2011 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. Amended tax form 2011 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. Amended tax form 2011 You can include this cost of continuing participation in the health plan as a medical expense. Amended tax form 2011 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. Amended tax form 2011 You cannot include this cost of continuing participation in that health plan as a medical expense. Amended tax form 2011 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. Amended tax form 2011 , 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. Amended tax form 2011 Taxes imposed by any governmental unit, such as Medicare taxes, are not insurance premiums. Amended tax form 2011 Coverage for nondependents. Amended tax form 2011   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. Amended tax form 2011 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. Amended tax form 2011  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. Amended tax form 2011 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. Amended tax form 2011 Laboratory Fees You can include in medical expenses the amounts you pay for laboratory fees that are part of medical care. Amended tax form 2011 Lactation Expenses See Breast Pumps and Supplies , earlier. Amended tax form 2011 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. Amended tax form 2011 These surfaces must be in poor repair (peeling or cracking) or within the child's reach. Amended tax form 2011 The cost of repainting the scraped area is not a medical expense. Amended tax form 2011 If, instead of removing the paint, you cover the area with wallboard or paneling, treat these items as capital expenses. Amended tax form 2011 See Capital Expenses , earlier. Amended tax form 2011 Do not include the cost of painting the wallboard as a medical expense. Amended tax form 2011 Learning Disability See Special Education , later. Amended tax form 2011 Legal Fees You can include in medical expenses legal fees you paid that are necessary to authorize treatment for mental illness. Amended tax form 2011 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. Amended tax form 2011 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. Amended tax form 2011 The part of the payment you include is the amount properly allocable to medical care. Amended tax form 2011 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. Amended tax form 2011 You can use a statement from the retirement home to prove the amount properly allocable to medical care. Amended tax form 2011 The statement must be based either on the home's prior experience or on information from a comparable home. Amended tax form 2011 Dependents with disabilities. Amended tax form 2011   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. Amended tax form 2011 The payments must be a condition for the institution's future acceptance of your child and must not be refundable. Amended tax form 2011 Payments for future medical care. Amended tax form 2011   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. Amended tax form 2011 This rule does not apply in situations where the future care is purchased in connection with obtaining lifetime care of the type described earlier. Amended tax form 2011 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. Amended tax form 2011 See Nursing Home , later. Amended tax form 2011 You may be able to include in medical expenses the cost of lodging not provided in a hospital or similar institution. Amended tax form 2011 You can include the cost of such lodging while away from home if all of the following requirements are met. Amended tax form 2011 The lodging is primarily for and essential to medical care. Amended tax form 2011 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. Amended tax form 2011 The lodging is not lavish or extravagant under the circumstances. Amended tax form 2011 There is no significant element of personal pleasure, recreation, or vacation in the travel away from home. Amended tax form 2011 The amount you include in medical expenses for lodging cannot be more than $50 for each night for each person. Amended tax form 2011 You can include lodging for a person traveling with the person receiving the medical care. Amended tax form 2011 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. Amended tax form 2011 Meals are not included. Amended tax form 2011 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. Amended tax form 2011 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. Amended tax form 2011 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. Amended tax form 2011 Chronically ill individual. Amended tax form 2011   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. Amended tax form 2011 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. Amended tax form 2011 Activities of daily living are eating, toileting, transferring, bathing, dressing, and continence. Amended tax form 2011 He or she requires substantial supervision to be protected from threats to health and safety due to severe cognitive impairment. Amended tax form 2011 Maintenance and personal care services. Amended tax form 2011    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). Amended tax form 2011 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. Amended tax form 2011 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. Amended tax form 2011 The amount of qualified long-term care premiums you can include is limited. Amended tax form 2011 You can include the following as medical expenses on Schedule A (Form 1040). Amended tax form 2011 Qualified long-term care premiums up to the following amounts. Amended tax form 2011 Age 40 or under – $360. Amended tax form 2011 Age 41 to 50 – $680. Amended tax form 2011 Age 51 to 60 – $1,360. Amended tax form 2011 Age 61 to 70 – $3,640. Amended tax form 2011 Age 71 or over – $4,550. Amended tax form 2011 Unreimbursed expenses for qualified long-term care services. Amended tax form 2011 Note. Amended tax form 2011 The limit on premiums is for each person. Amended tax form 2011 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. Amended tax form 2011 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. Amended tax form 2011 You cannot include in medical expenses the cost of meals that are not part of inpatient care. Amended tax form 2011 Also see Weight-Loss Program and Nutritional Supplements , later. Amended tax form 2011 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. Amended tax form 2011 The costs of the medical conference must be primarily for and necessary to the medical care of you, your spouse, or your dependent. Amended tax form 2011 The majority of the time spent at the conference must be spent attending sessions on medical information. Amended tax form 2011 The cost of meals and lodging while attending the conference is not deductible as a medical expense. Amended tax form 2011 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. Amended tax form 2011 Medicines You can include in medical expenses amounts you pay for prescribed medicines and drugs. Amended tax form 2011 A prescribed drug is one that requires a prescription by a doctor for its use by an individual. Amended tax form 2011 You can also include amounts you pay for insulin. Amended tax form 2011 Except for insulin, you cannot include in medical expenses amounts you pay for a drug that is not prescribed. Amended tax form 2011 Imported medicines and drugs. Amended tax form 2011   If you imported medicines or drugs from other countries, see Medicines and Drugs From Other Countries , under What Expenses Are Not Includible, later. Amended tax form 2011 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. Amended tax form 2011 This includes the cost of meals and lodging in the home if a principal reason for being there is to get medical care. Amended tax form 2011 Do not include the cost of meals and lodging if the reason for being in the home is personal. Amended tax form 2011 You can, however, include in medical expenses the part of the cost that is for medical or nursing care. Amended tax form 2011 Nursing Services You can include in medical expenses wages and other amounts you pay for nursing services. Amended tax form 2011 The services need not be performed by a nurse as long as the services are of a kind generally performed by a nurse. Amended tax form 2011 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. Amended tax form 2011 These services can be provided in your home or another care facility. Amended tax form 2011 Generally, only the amount spent for nursing services is a medical expense. Amended tax form 2011 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. Amended tax form 2011 For example, because of your medical condition you pay a visiting nurse $300 per week for medical and household services. Amended tax form 2011 She spends 10% of her time doing household services such as washing dishes and laundry. Amended tax form 2011 You can include only $270 per week as medical expenses. Amended tax form 2011 The $30 (10% × $300) allocated to household services cannot be included. Amended tax form 2011 However, certain maintenance or personal care services provided for qualified long-term care can be included in medical expenses. Amended tax form 2011 See Maintenance and personal care services under Long-Term Care, earlier. Amended tax form 2011 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. Amended tax form 2011 See Publication 503. Amended tax form 2011 You can also include in medical expenses part of the amount you pay for that attendant's meals. Amended tax form 2011 Divide the food expense among the household members to find the cost of the attendant's food. Amended tax form 2011 Then divide that cost in the same manner as in the preceding paragraph. Amended tax form 2011 If you had to pay additional amounts for household upkeep because of the attendant, you can include the extra amounts with your medical expenses. Amended tax form 2011 This includes extra rent or utilities you pay because you moved to a larger apartment to provide space for the attendant. Amended tax form 2011 Employment taxes. Amended tax form 2011   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. Amended tax form 2011 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. Amended tax form 2011 For information on employment tax responsibilities of household employers, see Publication 926, Household Employer's Tax Guide. Amended tax form 2011 Operations You can include in medical expenses amounts you pay for legal operations that are not for unnecessary cosmetic surgery. Amended tax form 2011 See Cosmetic Surgery under What Expenses Are Not Includible, later. Amended tax form 2011 Optometrist See Eyeglasses , earlier. Amended tax form 2011 Organ Donors See Transplants , later. Amended tax form 2011 Osteopath You can include in medical expenses amounts you pay to an osteopath for medical care. Amended tax form 2011 Oxygen You can include in medical expenses amounts you pay for oxygen and oxygen equipment to relieve breathing problems caused by a medical condition. Amended tax form 2011 Physical Examination You can include in medical expenses the amount you pay for an annual physical examination and diagnostic tests by a physician. Amended tax form 2011 You do not have to be ill at the time of the examination. Amended tax form 2011 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. Amended tax form 2011 Prosthesis See Artificial Limb and Breast Reconstruction Surgery , earlier. Amended tax form 2011 Psychiatric Care You can include in medical expenses amounts you pay for psychiatric care. Amended tax form 2011 This includes the cost of supporting a mentally ill dependent at a specially equipped medical center where the dependent receives medical care. Amended tax form 2011 See Psychoanalysis, next, and Transportation , later. Amended tax form 2011 Psychoanalysis You can include in medical expenses payments for psychoanalysis. Amended tax form 2011 However, you cannot include payments for psychoanalysis that is part of required training to be a psychoanalyst. Amended tax form 2011 Psychologist You can include in medical expenses amounts you pay to a psychologist for medical care. Amended tax form 2011 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. Amended tax form 2011 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. Amended tax form 2011 A doctor must recommend that the child attend the school. Amended tax form 2011 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. Amended tax form 2011 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. Amended tax form 2011 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). Amended tax form 2011 Also see Vasectomy , later. Amended tax form 2011 Stop-Smoking Programs You can include in medical expenses amounts you pay for a program to stop smoking. Amended tax form 2011 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. Amended tax form 2011 Surgery See Operations , earlier. Amended tax form 2011 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. Amended tax form 2011 This includes teletypewriter (TTY) and telecommunications device for the deaf (TDD) equipment. Amended tax form 2011 You can also include the cost of repairing the equipment. Amended tax form 2011 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. Amended tax form 2011 This may be the cost of an adapter that attaches to a regular set. Amended tax form 2011 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. Amended tax form 2011 Therapy You can include in medical expenses amounts you pay for therapy received as medical treatment. Amended tax form 2011 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. Amended tax form 2011 This includes transportation. Amended tax form 2011 You can include any expenses you pay for the medical care of a donor in connection with the donating of an organ. Amended tax form 2011 This includes transportation. Amended tax form 2011 Transportation You can include in medical expenses amounts paid for transportation primarily for, and essential to, medical care. Amended tax form 2011 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. Amended tax form 2011 Car expenses. Amended tax form 2011   You can include out-of-pocket expenses, such as the cost of gas and oil, when you use a car for medical reasons. Amended tax form 2011 You cannot include depreciation, insurance, general repair, or maintenance expenses. Amended tax form 2011   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. Amended tax form 2011    You can also include parking fees and tolls. Amended tax form 2011 You can add these fees and tolls to your medical expenses whether you use actual expenses or the standard mileage rate. Amended tax form 2011 Example. Amended tax form 2011 In 2013, Bill Jones drove 2,800 miles for medical reasons. Amended tax form 2011 He spent $500 for gas, $30 for oil, and $100 for tolls and parking. Amended tax form 2011 He wants to figure the amount he can include in medical expenses both ways to see which gives him the greater deduction. Amended tax form 2011 He figures the actual expenses first. Amended tax form 2011 He adds the $500 for gas, the $30 for oil, and the $100 for tolls and parking for a total of $630. Amended tax form 2011 He then figures the standard mileage amount. Amended tax form 2011 He multiplies 2,800 miles by 24 cents a mile for a total of $672. Amended tax form 2011 He then adds the $100 tolls and parking for a total of $772. Amended tax form 2011 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. Amended tax form 2011 Transportation expenses you cannot include. Amended tax form 2011    You cannot include in medical expenses the cost of transportation in the following situations. Amended tax form 2011 Going to and from work, even if your condition requires an unusual means of transportation. Amended tax form 2011 Travel for purely personal reasons to another city for an operation or other medical care. Amended tax form 2011 Travel that is merely for the general improvement of one's health. Amended tax form 2011 The costs of operating a specially equipped car for other than medical reasons. Amended tax form 2011 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. Amended tax form 2011 You may be able to include up to $50 for each night for each person. Amended tax form 2011 You can include lodging for a person traveling with the person receiving the medical care. Amended tax form 2011 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. Amended tax form 2011 Meals are not included. Amended tax form 2011 See Lodging , earlier. Amended tax form 2011 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. Amended tax form 2011 However, see Medical Conferences , earlier. Amended tax form 2011 Tuition Under special circumstances, you can include charges for tuition in medical expenses. Amended tax form 2011 See Special Education , earlier. Amended tax form 2011 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. Amended tax form 2011 Vasectomy You can include in medical expenses the amount you pay for a vasectomy. Amended tax form 2011 Vision Correction Surgery See Eye Surgery , earlier. Amended tax form 2011 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). Amended tax form 2011 This includes fees you pay for membership in a weight reduction group as well as fees for attendance at periodic meetings. Amended tax form 2011 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. Amended tax form 2011 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. Amended tax form 2011 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. Amended tax form 2011 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. Amended tax form 2011 See also Weight-Loss Program under What Expenses Are Not Includible, later. Amended tax form 2011 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. Amended tax form 2011 The cost of operating and maintaining the wheelchair is also a medical expense. Amended tax form 2011 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. Amended tax form 2011 X-ray You can include in medical expenses amounts you pay for X-rays for medical reasons. Amended tax form 2011 What Expenses Are Not Includible? Following is a list of some items that you cannot include in figuring your medical expense deduction. Amended tax form 2011 The items are listed in alphabetical order. Amended tax form 2011 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. Amended tax form 2011 Also, any expense allowed as a childcare credit cannot be treated as an expense paid for medical care. Amended tax form 2011 Controlled Substances You cannot include in medical expenses amounts you pay for controlled substances (such as marijuana, laetrile, etc. Amended tax form 2011 ), even if such substances are legalized by state law. Amended tax form 2011 Such substances are not legal under federal law and cannot be included in medical expenses. Amended tax form 2011 Cosmetic Surgery Generally, you cannot include in medical expenses the amount you pay for unnecessary cosmetic surgery. Amended tax form 2011 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. Amended tax form 2011 You generally cannot include in medical expenses the amount you pay for procedures such as face lifts, hair transplants, hair removal (electrolysis), and liposuction. Amended tax form 2011 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. Amended tax form 2011 Example. Amended tax form 2011 An individual undergoes surgery that removes a breast as part of treatment for cancer. Amended tax form 2011 She pays a surgeon to reconstruct the breast. Amended tax form 2011 The surgery to reconstruct the breast corrects a deformity directly related to the disease. Amended tax form 2011 The cost of the surgery is includible in her medical expenses. Amended tax form 2011 Dancing Lessons You cannot include in medical expenses the cost of dancing lessons, swimming lessons, etc. Amended tax form 2011 , even if they are recommended by a doctor, if they are only for the improvement of general health. Amended tax form 2011 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. Amended tax form 2011 Electrolysis or Hair Removal See Cosmetic Surgery , earlier. Amended tax form 2011 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. Amended tax form 2011 Funeral Expenses You cannot include in medical expenses amounts you pay for funerals. Amended tax form 2011 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. Amended tax form 2011 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. Amended tax form 2011 Hair Transplant See Cosmetic Surgery , earlier. Amended tax form 2011 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. Amended tax form 2011 You cannot include in medical expenses the cost of membership in any club organized for business, pleasure, recreation, or other social purpose. Amended tax form 2011 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. Amended tax form 2011 For more information, see Health Coverage Tax Credit , later. Amended tax form 2011 Health Savings Accounts You cannot include in medical expenses any payment or distribution for medical expenses out of a health savings account. Amended tax form 2011 Contributions to health savings accounts are deducted separately. Amended tax form 2011 See Publication 969. Amended tax form 2011 Household Help You cannot include in medical expenses the cost of household help, even if such help is recommended by a doctor. Amended tax form 2011 This is a personal expense that is not deductible. Amended tax form 2011 However, you may be able to include certain expenses paid to a person providing nursing-type services. Amended tax form 2011 For more information, see Nursing Services , earlier under What Medical Expenses Are Includible. Amended tax form 2011 Also, certain maintenance or personal care services provided for qualified long-term care can be included in medical expenses. Amended tax form 2011 For more information, see Long-Term Care , earlier under What Medical Expenses Are Includible. Amended tax form 2011 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. Amended tax form 2011 Insurance Premiums See Insurance Premiums under What Medical Expenses Are Includible, earlier. Amended tax form 2011 Maternity Clothes You cannot include in medical expenses amounts you pay for maternity clothes. Amended tax form 2011 Medical Savings Account (MSA) You cannot include in medical expenses amounts you contribute to an Archer MSA. Amended tax form 2011 You cannot include expenses you pay for with a tax-free distribution from your Archer MSA. Amended tax form 2011 You also cannot use other funds equal to the amount of the distribution and include the expenses. Amended tax form 2011 For more information on Archer MSAs, see Publication 969. Amended tax form 2011 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. Amended tax form 2011 You can only include the cost of a drug that was imported legally. Amended tax form 2011 For example, you can include the cost of a prescribed drug the Food and Drug Administration announces can be legally imported by individuals. Amended tax form 2011 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. Amended tax form 2011 Nonprescription Drugs and Medicines Except for insulin, you cannot include in medical expenses amounts you pay for a drug that is not prescribed. Amended tax form 2011 Example. Amended tax form 2011 Your doctor recommends that you take aspirin. Amended tax form 2011 Because aspirin is a drug that does not require a physician's prescription, you cannot include its cost in your medical expenses. Amended tax form 2011 Nutritional Supplements You cannot include in medical expenses the cost of nutritional supplements, vitamins, herbal supplements, “natural medicines,” etc. Amended tax form 2011 unless they are recommended by a medical practitioner as treatment for a specific medical condition diagnosed by a physician. Amended tax form 2011 Otherwise, these items are taken to maintain your ordinary good health, and are not for medical care. Amended tax form 2011 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. Amended tax form 2011 For example, the cost of a toothbrush and toothpaste is a nondeductible personal expense. Amended tax form 2011 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. Amended tax form 2011 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. Amended tax form 2011 (See Braille Books and Magazines under What Medical Expenses Are Includible, earlier. Amended tax form 2011 ) Swimming Lessons See Dancing Lessons , earlier. Amended tax form 2011 Teeth Whitening You cannot include in medical expenses amounts paid to whiten teeth. Amended tax form 2011 See Cosmetic Surgery , earlier. Amended tax form 2011 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. Amended tax form 2011 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. Amended tax form 2011 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). Amended tax form 2011 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. Amended tax form 2011 Also, you cannot include membership dues in a gym, health club, or spa. Amended tax form 2011 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. Amended tax form 2011 See Weight-Loss Program under What Medical Expenses Are Includible, earlier. Amended tax form 2011 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. Amended tax form 2011 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. Amended tax form 2011 This includes payments from Medicare. Amended tax form 2011 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. Amended tax form 2011 Example. Amended tax form 2011 You have insurance policies that cover your hospital and doctors' bills but not your nursing bills. Amended tax form 2011 The insurance you receive for the hospital and doctors' bills is more than their charges. Amended tax form 2011 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. Amended tax form 2011 Health reimbursement arrange
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Assess Your Needs

Only you can decide if you need these features. Sellers of cars, major appliances and other expensive items may try to sell you a service contract or "extended warranty." Service contracts or "extended warranties" can add hundreds to your purchase price and are rarely worth the cost. Some sellers may try to frighten you or lead you to believe that purchasing an extended warranty is required. Some duplicate warranty coverage you get automatically from a manufacturer or dealer. Ask these questions before you agree to one of these contracts:

  • Does the dealer, the manufacturer, or an independent company back the service contract?
  • How are claims handled? Who will do the work and where it will be done?
  • What happens to your coverage if the dealer or administrator goes out of business?
  • Do you need prior authorization for repair work?
  • Are there any situations when coverage can be denied? You may not have protection from common wear and tear. And some manufacturers do not honor contracts if you fail to follow their recommendations for routine maintenance.

The Amended Tax Form 2011

Amended tax form 2011 6. Amended tax form 2011   Insurance Table of Contents What's New Introduction Topics - This chapter discusses: Useful Items - You may want to see: Deductible PremiumsSelf-Employed Health Insurance Deduction Nondeductible Premiums Capitalized Premiums When To Deduct Premiums What's New Retiree drug subsidy. Amended tax form 2011  Beginning in 2013, sponsors of certain qualified retiree prescription drug plans must account for the subsidy received by reducing the amount of qualified retiree prescription drug plans expense by the subsidy received (taking into account the taxpayer's accounting method). Amended tax form 2011 For more information, see the retiree drug subsidy frequently asked questions on IRS. Amended tax form 2011 gov. Amended tax form 2011 Introduction You generally can deduct the ordinary and necessary cost of insurance as a business expense if it is for your trade, business, or profession. Amended tax form 2011 However, you may have to capitalize certain insurance costs under the uniform capitalization rules. Amended tax form 2011 For more information, see Capitalized Premiums , later. Amended tax form 2011 Topics - This chapter discusses: Deductible premiums Nondeductible premiums Capitalized premiums When to deduct premiums Useful Items - You may want to see: Publication 15-B Employer's Tax Guide to Fringe Benefits 525 Taxable and Nontaxable Income 538 Accounting Periods and Methods 547 Casualties, Disasters, and Thefts Form (and Instructions) 1040 U. Amended tax form 2011 S. Amended tax form 2011 Individual Income Tax Return See chapter 12 for information about getting publications and forms. Amended tax form 2011 Deductible Premiums You generally can deduct premiums you pay for the following kinds of insurance related to your trade or business. Amended tax form 2011 Insurance that covers fire, storm, theft, accident, or similar losses. Amended tax form 2011 Credit insurance that covers losses from business bad debts. Amended tax form 2011 Group hospitalization and medical insurance for employees, including long-term care insurance. Amended tax form 2011 If a partnership pays accident and health insurance premiums for its partners, it generally can deduct them as guaranteed payments to partners. Amended tax form 2011 If an S corporation pays accident and health insurance premiums for its more-than-2% shareholder-employees, it generally can deduct them, but must also include them in the shareholder's wages subject to federal income tax withholding. Amended tax form 2011 See Publication 15-B. Amended tax form 2011 Liability insurance. Amended tax form 2011 Malpractice insurance that covers your personal liability for professional negligence resulting in injury or damage to patients or clients. Amended tax form 2011 Workers' compensation insurance set by state law that covers any claims for bodily injuries or job-related diseases suffered by employees in your business, regardless of fault. Amended tax form 2011 If a partnership pays workers' compensation premiums for its partners, it generally can deduct them as guaranteed payments to partners. Amended tax form 2011 If an S corporation pays workers' compensation premiums for its more-than-2% shareholder-employees, it generally can deduct them, but must also include them in the shareholder's wages. Amended tax form 2011 Contributions to a state unemployment insurance fund are deductible as taxes if they are considered taxes under state law. Amended tax form 2011 Overhead insurance that pays for business overhead expenses you have during long periods of disability caused by your injury or sickness. Amended tax form 2011 Car and other vehicle insurance that covers vehicles used in your business for liability, damages, and other losses. Amended tax form 2011 If you operate a vehicle partly for personal use, deduct only the part of the insurance premium that applies to the business use of the vehicle. Amended tax form 2011 If you use the standard mileage rate to figure your car expenses, you cannot deduct any car insurance premiums. Amended tax form 2011 Life insurance covering your officers and employees if you are not directly or indirectly a beneficiary under the contract. Amended tax form 2011 Business interruption insurance that pays for lost profits if your business is shut down due to a fire or other cause. Amended tax form 2011 Self-Employed Health Insurance Deduction You may be able to deduct premiums paid for medical and dental insurance and qualified long-term care insurance for yourself, your spouse, and your dependents. Amended tax form 2011 The insurance can also cover your child who was under age 27 at the end of 2013, even if the child was not your dependent. Amended tax form 2011 A child includes your son, daughter, stepchild, adopted child, or foster child. Amended tax form 2011 A foster child is any child placed with you by an authorized placement agency or by judgment, decree, or other order of any court of competent jurisdiction. Amended tax form 2011 One of the following statements must be true. Amended tax form 2011 You were self-employed and had a net profit for the year reported on Schedule C (Form 1040), Profit or Loss From Business; Schedule C-EZ (Form 1040), Net Profit From Business; or Schedule F (Form 1040), Profit or Loss From Farming. Amended tax form 2011 You were a partner with net earnings from self-employment for the year reported on Schedule K-1 (Form 1065), Partner's Share of Income, Deductions, Credits, etc. Amended tax form 2011 , box 14, code A. Amended tax form 2011 You used one of the optional methods to figure your net earnings from self-employment on Schedule SE. Amended tax form 2011 You received wages in 2013 from an S corporation in which you were a more-than-2% shareholder. Amended tax form 2011 Health insurance premiums paid or reimbursed by the S corporation are shown as wages on Form W-2, Wage and Tax Statement. Amended tax form 2011 The insurance plan must be established, or considered to be established as discussed in the following bullets, under your business. Amended tax form 2011 For self-employed individuals filing a Schedule C, C-EZ, or F, a policy can be either in the name of the business or in the name of the individual. Amended tax form 2011 For partners, a policy can be either in the name of the partnership or in the name of the partner. Amended tax form 2011 You can either pay the premiums yourself or your partnership can pay them and report the premium amounts on Schedule K-1 (Form 1065) as guaranteed payments to be included in your gross income. Amended tax form 2011 However, if the policy is in your name and you pay the premiums yourself, the partnership must reimburse you and report the premium amounts on Schedule K-1 (Form 1065) as guaranteed payments to be included in your gross income. Amended tax form 2011 Otherwise, the insurance plan will not be considered to be established under your business. Amended tax form 2011 For more-than-2% shareholders, a policy can be either in the name of the S corporation or in the name of the shareholder. Amended tax form 2011 You can either pay the premiums yourself or your S corporation can pay them and report the premium amounts on Form W-2 as wages to be included in your gross income. Amended tax form 2011 However, if the policy is in your name and you pay the premiums yourself, the S corporation must reimburse you and report the premium amounts on Form W-2 as wages to be included in your gross income. Amended tax form 2011 Otherwise, the insurance plan will not be considered to be established under your business. Amended tax form 2011 Medicare premiums you voluntarily pay to obtain insurance in your name that is similar to qualifying private health insurance can be used to figure the deduction. Amended tax form 2011 If you previously filed returns without using Medicare premiums to figure the deduction, you can file timely amended returns to refigure the deduction. Amended tax form 2011 For more information, see Form 1040X, Amended U. Amended tax form 2011 S. Amended tax form 2011 Individual Income Tax Return. Amended tax form 2011 Amounts paid for health insurance coverage from retirement plan distributions that were nontaxable because you are a retired public safety officer cannot be used to figure the deduction. Amended tax form 2011 Take the deduction on Form 1040, line 29. Amended tax form 2011 Qualified long-term care insurance. Amended tax form 2011   You can include premiums paid on a qualified long-term care insurance contract when figuring your deduction. Amended tax form 2011 But, for each person covered, you can include only the smaller of the following amounts. Amended tax form 2011 The amount paid for that person. Amended tax form 2011 The amount shown below. Amended tax form 2011 Use the person's age at the end of the tax year. Amended tax form 2011 Age 40 or younger–$360 Age 41 to 50–$680 Age 51 to 60–$1,360 Age 61 to 70–$3,640 Age 71 or older–$4,550 Qualified long-term care insurance contract. Amended tax form 2011   A qualified long-term care insurance contract is an insurance contract that only provides coverage of qualified long-term care services. Amended tax form 2011 The contract must meet all the following requirements. Amended tax form 2011 It must be guaranteed renewable. Amended tax form 2011 It must 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 may be used only to reduce future premiums or increase future benefits. Amended tax form 2011 It must not provide for a cash surrender value or other money that can be paid, assigned, pledged, or borrowed. Amended tax form 2011 It generally must 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. Amended tax form 2011 Qualified long-term care services. Amended tax form 2011   Qualified long-term care services are: Necessary diagnostic, preventive, therapeutic, curing, treating, mitigating, and rehabilitative services, and Maintenance or personal care services. Amended tax form 2011 The services must be required by a chronically ill individual and prescribed by a licensed health care practitioner. Amended tax form 2011 Worksheet 6-A. Amended tax form 2011 Self-Employed Health Insurance Deduction Worksheet Note. Amended tax form 2011 Use a separate worksheet for each trade or business under which an insurance plan is established. Amended tax form 2011 1. Amended tax form 2011 Enter the total amount paid in 2013 for health insurance coverage established under your business for 2013 for you, your spouse, and your dependents. Amended tax form 2011 Your insurance can also cover your child who was under age 27 at the end of 2013, even if the child was not your dependent. Amended tax form 2011 But do not include the following. Amended tax form 2011   Amounts for any month you were eligible to participate in a health plan subsidized by your or your spouse's employer or the employer of either your dependent or your child who was under the age of 27 at the end of 2013. Amended tax form 2011 Any amounts paid from retirement plan distributions that were nontaxable because you are a retired public safety officer. Amended tax form 2011 Any amounts you included on Form 8885, line 4. Amended tax form 2011 Any qualified health insurance premiums you paid to “U. Amended tax form 2011 S. Amended tax form 2011 Treasury-HCTC. Amended tax form 2011 ” Any health coverage tax credit advance payments shown in box 1 of Form 1099-H. Amended tax form 2011 Any payments for qualified long-term care insurance (see line 2) 1. Amended tax form 2011   2. Amended tax form 2011 For coverage under a qualified long-term care insurance contract, enter for each person covered the smaller of the following amounts. Amended tax form 2011       a) Total payments made for that person during the year. Amended tax form 2011       b) The amount shown below. Amended tax form 2011 Use the person's age at the end of the tax year. Amended tax form 2011         $360— if that person is age 40 or younger          $680— if age 41 to 50         $1,360— if age 51 to 60         $3,640— if age 61 to 70         $4,550— if age 71 or older         Do not include payments for any month you were eligible to participate in a long-term care insurance plan subsidized by your or your spouse’s employer or the employer of either your dependent or your child who was under the age of 27 at the end of 2013. Amended tax form 2011 If more than one person is covered, figure separately the amount to enter for each person. Amended tax form 2011 Then enter the total of those amounts 2. Amended tax form 2011   3. Amended tax form 2011 Add lines 1 and 2 3. Amended tax form 2011   4. Amended tax form 2011 Enter your net profit* and any other earned income** from the trade or business under which the insurance plan is established. Amended tax form 2011 Do not include Conservation Reserve Program payments exempt from self-employment tax. Amended tax form 2011 If the business is an S corporation, skip to line 11 4. Amended tax form 2011   5. Amended tax form 2011 Enter the total of all net profits* from: Schedule C (Form 1040), line 31; Schedule C-EZ (Form 1040), line 3; Schedule F (Form 1040), line 34; or Schedule K-1 (Form 1065), box 14, code A; plus any other income allocable to the profitable businesses. Amended tax form 2011 Do not include Conservation Reserve Program payments exempt from self-employment tax. Amended tax form 2011 See the Instructions for Schedule SE (Form 1040). Amended tax form 2011 Do not include any net losses shown on these schedules. Amended tax form 2011 5. Amended tax form 2011   6. Amended tax form 2011 Divide line 4 by line 5 6. Amended tax form 2011   7. Amended tax form 2011 Multiply Form 1040, line 27, by the percentage on line 6 7. Amended tax form 2011   8. Amended tax form 2011 Subtract line 7 from line 4 8. Amended tax form 2011   9. Amended tax form 2011 Enter the amount, if any, from Form 1040, line 28, attributable to the same trade or business in which the insurance plan is established 9. Amended tax form 2011   10. Amended tax form 2011 Subtract line 9 from line 8 10. Amended tax form 2011   11. Amended tax form 2011 Enter your Medicare wages (Form W-2, box 5) from an S corporation in which you are a more-than-2% shareholder and in which the insurance plan is established 11. Amended tax form 2011   12. Amended tax form 2011 Enter any amount from Form 2555, line 45, attributable to the amount entered on line 4 or 11 above, or any amount from Form 2555-EZ, line 18, attributable to the amount entered on line 11 above 12. Amended tax form 2011   13. Amended tax form 2011 Subtract line 12 from line 10 or 11, whichever applies 13. Amended tax form 2011   14. Amended tax form 2011 Enter the smaller of line 3 or line 13 here and on Form 1040, line 29. Amended tax form 2011 Do not include this amount when figuring any medical expense deduction on Schedule A (Form 1040). Amended tax form 2011 14. Amended tax form 2011   * If you used either optional method to figure your net earnings from self-employment from any business, do not enter your net profit from the business. Amended tax form 2011 Instead, enter the amount attributable to that business from Schedule SE (Form 1040), Section B, line 4b. Amended tax form 2011 * *Earned income includes net earnings and gains from the sale, transfer, or licensing of property you created. Amended tax form 2011 However, it does not include capital gain income. Amended tax form 2011 Chronically ill individual. Amended tax form 2011   A chronically ill individual is a person who has been certified as one of the following. Amended tax form 2011 An individual who has been unable, due to loss of functional capacity for at least 90 days, to perform at least two activities of daily living without substantial assistance from another individual. Amended tax form 2011 Activities of daily living are eating, toileting, transferring (general mobility), bathing, dressing, and continence. Amended tax form 2011 An individual who requires substantial supervision to be protected from threats to health and safety due to severe cognitive impairment. Amended tax form 2011 The certification must have been made by a licensed health care practitioner within the previous 12 months. Amended tax form 2011 Benefits received. Amended tax form 2011   For information on excluding benefits you receive from a long-term care contract from gross income, see Publication 525. Amended tax form 2011 Other coverage. Amended tax form 2011   You cannot take the deduction for any month you were eligible to participate in any employer (including your spouse's) subsidized health plan at any time during that month, even if you did not actually participate. Amended tax form 2011 In addition, if you were eligible for any month or part of a month to participate in any subsidized health plan maintained by the employer of either your dependent or your child who was under age 27 at the end of 2013, do not use amounts paid for coverage for that month to figure the deduction. Amended tax form 2011   These rules are applied separately to plans that provide long-term care insurance and plans that do not provide long-term care insurance. Amended tax form 2011 However, any medical insurance payments not deductible on Form 1040, line 29, can be included as medical expenses on Schedule A (Form 1040), Itemized Deductions, if you itemize deductions. Amended tax form 2011 Effect on itemized deductions. Amended tax form 2011   Subtract the health insurance deduction from your medical insurance when figuring medical expenses on Schedule A (Form 1040) if you itemize deductions. Amended tax form 2011 Effect on self-employment tax. Amended tax form 2011   For tax years beginning before or after 2010, you cannot subtract the self-employed health insurance deduction when figuring net earnings for your self-employment tax from the business under which the insurance plan is established, or considered to be established as discussed earlier. Amended tax form 2011 For more information, see Schedule SE (Form 1040). Amended tax form 2011 How to figure the deduction. Amended tax form 2011   Generally, you can use the worksheet in the Form 1040 instructions to figure your deduction. Amended tax form 2011 However, if any of the following apply, you must use Worksheet 6-A in this chapter. Amended tax form 2011 You had more than one source of income subject to self-employment tax. Amended tax form 2011 You file Form 2555, Foreign Earned Income, or Form 2555-EZ, Foreign Earned Income Exclusion. Amended tax form 2011 You are using amounts paid for qualified long-term care insurance to figure the deduction. Amended tax form 2011 If you are claiming the health coverage tax credit, complete Form 8885, Health Coverage Tax Credit, before you figure this deduction. Amended tax form 2011 Health coverage tax credit. Amended tax form 2011   You may be able to take this credit only if you were an eligible trade adjustment assistance (TAA) recipient, alternative TAA (ATAA) recipient, reemployment trade adjustment assistance (RTAA) recipient, or Pension Benefit Guaranty Corporation (PBGC) pension recipient. Amended tax form 2011 Use Form 8885 to figure the amount, if any, of this credit. Amended tax form 2011   When figuring the amount to enter on line 1 of Worksheet 6-A, do not include the following. Amended tax form 2011 Any amounts you included on Form 8885, line 4. Amended tax form 2011 Any qualified health insurance premiums you paid to “U. Amended tax form 2011 S. Amended tax form 2011 Treasury-HCTC. Amended tax form 2011 ” Any health coverage tax credit advance payments shown in box 1 of Form 1099-H, Health Coverage Tax Credit (HCTC) Advance Payments. Amended tax form 2011 More than one health plan and business. Amended tax form 2011   If you have more than one health plan during the year and each plan is established under a different business, you must use separate worksheets (Worksheet 6-A) to figure each plan's net earnings limit. Amended tax form 2011 Include the premium you paid under each plan on line 1 or line 2 of that separate worksheet and your net profit (or wages) from that business on line 4 (or line 11). Amended tax form 2011 For a plan that provides long-term care insurance, the total of the amounts entered for each person on line 2 of all worksheets cannot be more than the appropriate limit shown on line 2 for that person. Amended tax form 2011 Nondeductible Premiums You cannot deduct premiums on the following kinds of insurance. Amended tax form 2011 Self-insurance reserve funds. Amended tax form 2011 You cannot deduct amounts credited to a reserve set up for self-insurance. Amended tax form 2011 This applies even if you cannot get business insurance coverage for certain business risks. Amended tax form 2011 However, your actual losses may be deductible. Amended tax form 2011 See Publication 547. Amended tax form 2011 Loss of earnings. Amended tax form 2011 You cannot deduct premiums for a policy that pays for lost earnings due to sickness or disability. Amended tax form 2011 However, see the discussion on overhead insurance, item (8), under Deductible Premiums , earlier. Amended tax form 2011 Certain life insurance and annuities. Amended tax form 2011 For contracts issued before June 9, 1997, you cannot deduct the premiums on a life insurance policy covering you, an employee, or any person with a financial interest in your business if you are directly or indirectly a beneficiary of the policy. Amended tax form 2011 You are included among possible beneficiaries of the policy if the policy owner is obligated to repay a loan from you using the proceeds of the policy. Amended tax form 2011 A person has a financial interest in your business if the person is an owner or part owner of the business or has lent money to the business. Amended tax form 2011 For contracts issued after June 8, 1997, you generally cannot deduct the premiums on any life insurance policy, endowment contract, or annuity contract if you are directly or indirectly a beneficiary. Amended tax form 2011 The disallowance applies without regard to whom the policy covers. Amended tax form 2011 Partners. Amended tax form 2011 If, as a partner in a partnership, you take out an insurance policy on your own life and name your partners as beneficiaries to induce them to retain their investments in the partnership, you are considered a beneficiary. Amended tax form 2011 You cannot deduct the insurance premiums. Amended tax form 2011 Insurance to secure a loan. Amended tax form 2011 If you take out a policy on your life or on the life of another person with a financial interest in your business to get or protect a business loan, you cannot deduct the premiums as a business expense. Amended tax form 2011 Nor can you deduct the premiums as interest on business loans or as an expense of financing loans. Amended tax form 2011 In the event of death, the proceeds of the policy are generally not taxed as income even if they are used to liquidate the debt. Amended tax form 2011 Capitalized Premiums Under the uniform capitalization rules, you must capitalize the direct costs and part of the indirect costs for certain production or resale activities. Amended tax form 2011 Include these costs in the basis of property you produce or acquire for resale, rather than claiming them as a current deduction. Amended tax form 2011 You recover the costs through depreciation, amortization, or cost of goods sold when you use, sell, or otherwise dispose of the property. Amended tax form 2011 Indirect costs include premiums for insurance on your plant or facility, machinery, equipment, materials, property produced, or property acquired for resale. Amended tax form 2011 Uniform capitalization rules. Amended tax form 2011   You may be subject to the uniform capitalization rules if you do any of the following, unless the property is produced for your use other than in a business or an activity carried on for profit. Amended tax form 2011 Produce real property or tangible personal property. Amended tax form 2011 For this purpose, tangible personal property includes a film, sound recording, video tape, book, or similar property. Amended tax form 2011 Acquire property for resale. Amended tax form 2011 However, these rules do not apply to the following property. Amended tax form 2011 Personal property you acquire for resale if your average annual gross receipts are $10 million or less for the 3 prior tax years. Amended tax form 2011 Property you produce if you meet either of the following conditions. Amended tax form 2011 Your indirect costs of producing the property are $200,000 or less. Amended tax form 2011 You use the cash method of accounting and do not account for inventories. Amended tax form 2011 More information. Amended tax form 2011   For more information on these rules, see Uniform Capitalization Rules in Publication 538 and the regulations under Internal Revenue Code section 263A. Amended tax form 2011 When To Deduct Premiums You can usually deduct insurance premiums in the tax year to which they apply. Amended tax form 2011 Cash method. Amended tax form 2011   If you use the cash method of accounting, you generally deduct insurance premiums in the tax year you actually paid them, even if you incurred them in an earlier year. Amended tax form 2011 However, see Prepayment , later. Amended tax form 2011 Accrual method. Amended tax form 2011   If you use an accrual method of accounting, you cannot deduct insurance premiums before the tax year in which you incur a liability for them. Amended tax form 2011 In addition, you cannot deduct insurance premiums before the tax year in which you actually pay them (unless the exception for recurring items applies). Amended tax form 2011 For more information about the accrual method of accounting, see chapter 1. Amended tax form 2011 For information about the exception for recurring items, see Publication 538. Amended tax form 2011 Prepayment. Amended tax form 2011   You cannot deduct expenses in advance, even if you pay them in advance. Amended tax form 2011 This rule applies to any expense paid far enough in advance to, in effect, create an asset with a useful life extending substantially beyond the end of the current tax year. Amended tax form 2011   Expenses such as insurance are generally allocable to a period of time. Amended tax form 2011 You can deduct insurance expenses for the year to which they are allocable. Amended tax form 2011 Example. Amended tax form 2011 In 2013, you signed a 3-year insurance contract. Amended tax form 2011 Even though you paid the premiums for 2013, 2014, and 2015 when you signed the contract, you can only deduct the premium for 2013 on your 2013 tax return. Amended tax form 2011 You can deduct in 2014 and 2015 the premium allocable to those years. Amended tax form 2011 Dividends received. Amended tax form 2011   If you receive dividends from business insurance and you deducted the premiums in prior years, at least part of the dividends generally are income. Amended tax form 2011 For more information, see Recovery of amount deducted (tax benefit rule) in chapter 1 under How Much Can I Deduct. Amended tax form 2011 Prev  Up  Next   Home   More Online Publications