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Can I File 1040ez Online

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Can I File 1040ez Online

Can i file 1040ez online 4. Can i file 1040ez online   Special Situations Table of Contents Condominiums CooperativesDepreciation Property Changed to Rental UseBasis of Property Changed to Rental Use Figuring the Depreciation Deduction Renting Part of Property Not Rented for ProfitPostponing decision. Can i file 1040ez online Example—Property Changed to Rental Use This chapter discusses some rental real estate activities that are subject to additional rules. Can i file 1040ez online Condominiums A condominium is most often a dwelling unit in a multi-unit building, but can also take other forms, such as a townhouse or garden apartment. Can i file 1040ez online If you own a condominium, you also own a share of the common elements, such as land, lobbies, elevators, and service areas. Can i file 1040ez online You and the other condominium owners may pay dues or assessments to a special corporation that is organized to take care of the common elements. Can i file 1040ez online Special rules apply if you rent your condominium to others. Can i file 1040ez online You can deduct as rental expenses all the expenses discussed in chapters 1 and 2. Can i file 1040ez online In addition, you can deduct any dues or assessments paid for maintenance of the common elements. Can i file 1040ez online You cannot deduct special assessments you pay to a condominium management corporation for improvements. Can i file 1040ez online However, you may be able to recover your share of the cost of any improvement by taking depreciation. Can i file 1040ez online Cooperatives If you live in a cooperative, you do not own your apartment. Can i file 1040ez online Instead, a corporation owns the apartments and you are a tenant-stockholder in the cooperative housing corporation. Can i file 1040ez online If you rent your apartment to others, you usually can deduct, as a rental expense, all the maintenance fees you pay to the cooperative housing corporation. Can i file 1040ez online In addition to the maintenance fees paid to the cooperative housing corporation, you can deduct your direct payments for repairs, upkeep, and other rental expenses, including interest paid on a loan used to buy your stock in the corporation. Can i file 1040ez online Depreciation You will be depreciating your stock in the corporation rather than the apartment itself. Can i file 1040ez online Figure your depreciation deduction as follows. Can i file 1040ez online Figure the depreciation for all the depreciable real property owned by the corporation. Can i file 1040ez online (Depreciation methods are discussed in chapter 2 of this publication and Publication 946. Can i file 1040ez online ) If you bought your cooperative stock after its first offering, figure the depreciable basis of this property as follows. Can i file 1040ez online Multiply your cost per share by the total number of outstanding shares. Can i file 1040ez online Add to the amount figured in (a) any mortgage debt on the property on the date you bought the stock. Can i file 1040ez online Subtract from the amount figured in (b) any mortgage debt that is not for the depreciable real property, such as the part for the land. Can i file 1040ez online Subtract from the amount figured in (1) any depreciation for space owned by the corporation that can be rented but cannot be lived in by tenant-stockholders. Can i file 1040ez online Divide the number of your shares of stock by the total number of shares outstanding, including any shares held by the corporation. Can i file 1040ez online Multiply the result of (2) by the percentage you figured in (3). Can i file 1040ez online This is your depreciation on the stock. Can i file 1040ez online Your depreciation deduction for the year cannot be more than the part of your adjusted basis (defined in chapter 2) in the stock of the corporation that is allocable to your rental property. Can i file 1040ez online Payments added to capital account. Can i file 1040ez online   Payments earmarked for a capital asset or improvement, or otherwise charged to the corporation's capital account are added to the basis of your stock in the corporation. Can i file 1040ez online For example, you cannot deduct a payment used to pave a community parking lot, install a new roof, or pay the principal of the corporation's mortgage. Can i file 1040ez online   Treat as a capital cost the amount you were assessed for capital items. Can i file 1040ez online This cannot be more than the amount by which your payments to the corporation exceeded your share of the corporation's mortgage interest and real estate taxes. Can i file 1040ez online   Your share of interest and taxes is the amount the corporation elected to allocate to you, if it reasonably reflects those expenses for your apartment. Can i file 1040ez online Otherwise, figure your share in the following manner. Can i file 1040ez online Divide the number of your shares of stock by the total number of shares outstanding, including any shares held by the corporation. Can i file 1040ez online Multiply the corporation's deductible interest by the number you figured in (1). Can i file 1040ez online This is your share of the interest. Can i file 1040ez online Multiply the corporation's deductible taxes by the number you figured in (1). Can i file 1040ez online This is your share of the taxes. Can i file 1040ez online Property Changed to Rental Use If you change your home or other property (or a part of it) to rental use at any time other than the beginning of your tax year, you must divide yearly expenses, such as taxes and insurance, between rental use and personal use. Can i file 1040ez online You can deduct as rental expenses only the part of the expense that is for the part of the year the property was used or held for rental purposes. Can i file 1040ez online You cannot deduct depreciation or insurance for the part of the year the property was held for personal use. Can i file 1040ez online However, you can include the home mortgage interest, qualified mortgage insurance premiums, and real estate tax expenses for the part of the year the property was held for personal use as an itemized deduction on Schedule A (Form 1040). Can i file 1040ez online Example. Can i file 1040ez online Your tax year is the calendar year. Can i file 1040ez online You moved from your home in May and started renting it out on June 1. Can i file 1040ez online You can deduct as rental expenses seven-twelfths of your yearly expenses, such as taxes and insurance. Can i file 1040ez online Starting with June, you can deduct as rental expenses the amounts you pay for items generally billed monthly, such as utilities. Can i file 1040ez online When figuring depreciation, treat the property as placed in service on June 1. Can i file 1040ez online Basis of Property Changed to Rental Use When you change property you held for personal use to rental use (for example, you rent your former home), the basis for depreciation will be the lesser of fair market value or adjusted basis on the date of conversion. Can i file 1040ez online Fair market value. Can i file 1040ez online   This is the price at which the property would change hands between a willing buyer and a willing seller, neither having to buy or sell, and both having reasonable knowledge of all the relevant facts. Can i file 1040ez online Sales of similar property, on or about the same date, may be helpful in figuring the fair market value of the property. Can i file 1040ez online Figuring the basis. Can i file 1040ez online   The basis for depreciation is the lesser of: The fair market value of the property on the date you changed it to rental use, or Your adjusted basis on the date of the change—that is, your original cost or other basis of the property, plus the cost of permanent additions or improvements since you acquired it, minus deductions for any casualty or theft losses claimed on earlier years' income tax returns and other decreases to basis. Can i file 1040ez online For other increases and decreases to basis, see Adjusted Basis in chapter 2. Can i file 1040ez online Example. Can i file 1040ez online Several years ago you built your home for $140,000 on a lot that cost you $14,000. Can i file 1040ez online Before changing the property to rental use this year, you added $28,000 of permanent improvements to the house and claimed a $3,500 casualty loss deduction for damage to the house. Can i file 1040ez online Part of the improvements qualified for a $500 residential energy credit, which you claimed on your 2010 tax return. Can i file 1040ez online Because land is not depreciable, you can only include the cost of the house when figuring the basis for depreciation. Can i file 1040ez online The adjusted basis of the house at the time of the change in its use was $164,000 ($140,000 + $28,000 − $3,500 − $500). Can i file 1040ez online On the date of the change in use, your property had a fair market value of $168,000, of which $21,000 was for the land and $147,000 was for the house. Can i file 1040ez online The basis for depreciation on the house is the fair market value on the date of the change ($147,000), because it is less than your adjusted basis ($164,000). Can i file 1040ez online Cooperatives If you change your cooperative apartment to rental use, figure your allowable depreciation as explained earlier. Can i file 1040ez online (Depreciation methods are discussed in chapter 2 of this publication and Publication 946. Can i file 1040ez online ) The basis of all the depreciable real property owned by the cooperative housing corporation is the smaller of the following amounts. Can i file 1040ez online The fair market value of the property on the date you change your apartment to rental use. Can i file 1040ez online This is considered to be the same as the corporation's adjusted basis minus straight line depreciation, unless this value is unrealistic. Can i file 1040ez online The corporation's adjusted basis in the property on that date. Can i file 1040ez online Do not subtract depreciation when figuring the corporation's adjusted basis. Can i file 1040ez online If you bought the stock after its first offering, the corporation's adjusted basis in the property is the amount figured in (1) under Depreciation (under Cooperatives, near the beginning of this chapter). Can i file 1040ez online The fair market value of the property is considered to be the same as the corporation's adjusted basis figured in this way minus straight line depreciation, unless the value is unrealistic. Can i file 1040ez online Figuring the Depreciation Deduction To figure the deduction, use the depreciation system in effect when you convert your residence to rental use. Can i file 1040ez online Generally, that will be MACRS for any conversion after 1986. Can i file 1040ez online Treat the property as placed in service on the conversion date. Can i file 1040ez online Example. Can i file 1040ez online Your converted residence (see previous example under Figuring the basis) was available for rent on August 1. Can i file 1040ez online Using Table 2-2d (see chapter 2), the percentage for Year 1 beginning in August is 1. Can i file 1040ez online 364% and the depreciation deduction for Year 1 is $2,005 ($147,000 × . Can i file 1040ez online 01364). Can i file 1040ez online Renting Part of Property If you rent part of your property, you must divide certain expenses between the part of the property used for rental purposes and the part of the property used for personal purposes, as though you actually had two separate pieces of property. Can i file 1040ez online You can deduct the expenses related to the part of the property used for rental purposes, such as home mortgage interest, qualified mortgage insurance premiums, and real estate taxes, as rental expenses on Schedule E (Form 1040). Can i file 1040ez online You can also deduct as rental expenses a portion of other expenses that normally are nondeductible personal expenses, such as expenses for electricity, or painting the outside of the house. Can i file 1040ez online There is no change in the types of expenses deductible for the personal-use part of your property. Can i file 1040ez online Generally, these expenses may be deducted only if you itemize your deductions on Schedule A (Form 1040). Can i file 1040ez online You cannot deduct any part of the cost of the first phone line even if your tenants have unlimited use of it. Can i file 1040ez online You do not have to divide the expenses that belong only to the rental part of your property. Can i file 1040ez online For example, if you paint a room that you rent, or if you pay premiums for liability insurance in connection with renting a room in your home, your entire cost is a rental expense. Can i file 1040ez online If you install a second phone line strictly for your tenant's use, all of the cost of the second line is deductible as a rental expense. Can i file 1040ez online You can deduct depreciation on the part of the house used for rental purposes as well as on the furniture and equipment you use for rental purposes. Can i file 1040ez online How to divide expenses. Can i file 1040ez online   If an expense is for both rental use and personal use, such as mortgage interest or heat for the entire house, you must divide the expense between rental use and personal use. Can i file 1040ez online You can use any reasonable method for dividing the expense. Can i file 1040ez online It may be reasonable to divide the cost of some items (for example, water) based on the number of people using them. Can i file 1040ez online The two most common methods for dividing an expense are (1) the number of rooms in your home, and (2) the square footage of your home. Can i file 1040ez online Example. Can i file 1040ez online You rent a room in your house. Can i file 1040ez online The room is 12 × 15 feet, or 180 square feet. Can i file 1040ez online Your entire house has 1,800 square feet of floor space. Can i file 1040ez online You can deduct as a rental expense 10% of any expense that must be divided between rental use and personal use. Can i file 1040ez online If your heating bill for the year for the entire house was $600, $60 ($600 × . Can i file 1040ez online 10) is a rental expense. Can i file 1040ez online The balance, $540, is a personal expense that you cannot deduct. Can i file 1040ez online Duplex. Can i file 1040ez online   A common situation is the duplex where you live in one unit and rent out the other. Can i file 1040ez online Certain expenses apply to the entire property, such as mortgage interest and real estate taxes, and must be split to determine rental and personal expenses. Can i file 1040ez online Example. Can i file 1040ez online You own a duplex and live in one half, renting the other half. Can i file 1040ez online Both units are approximately the same size. Can i file 1040ez online Last year, you paid a total of $10,000 mortgage interest and $2,000 real estate taxes for the entire property. Can i file 1040ez online You can deduct $5,000 mortgage interest and $1,000 real estate taxes on Schedule E (Form 1040), and if you itemize your deductions, you can deduct the other $5,000 mortgage interest and $1,000 real estate taxes on Schedule A (Form 1040). Can i file 1040ez online Not Rented for Profit If you do not rent your property to make a profit, you can deduct your rental expenses only up to the amount of your rental income. Can i file 1040ez online You cannot deduct a loss or carry forward to the next year any rental expenses that are more than your rental income for the year. Can i file 1040ez online Where to report. Can i file 1040ez online   Report your not-for-profit rental income on Form 1040 or 1040NR, line 21. Can i file 1040ez online For example, if you are filing Form 1040, you can include your mortgage interest and any qualified mortgage insurance premiums (if you use the property as your main home or second home), real estate taxes, and casualty losses on the appropriate lines of Schedule A (Form 1040) if you itemize your deductions. Can i file 1040ez online   If you itemize your deductions, claim your other rental expenses, subject to the rules explained in chapter 1 of Publication 535, as miscellaneous itemized deductions on Schedule A (Form 1040), line 23, or Schedule A (Form 1040NR), line 9. Can i file 1040ez online You can deduct these expenses only if they, together with certain other miscellaneous itemized deductions, total more than 2% of your adjusted gross income. Can i file 1040ez online Presumption of profit. Can i file 1040ez online   If your rental income is more than your rental expenses for at least 3 years out of a period of 5 consecutive years, you are presumed to be renting your property to make a profit. Can i file 1040ez online Postponing decision. Can i file 1040ez online   If you are starting your rental activity and do not have 3 years showing a profit, you can elect to have the presumption made after you have the 5 years of experience required by the test. Can i file 1040ez online You may choose to postpone the decision of whether the rental is for profit by filing Form 5213. Can i file 1040ez online You must file Form 5213 within 3 years after the due date of your return (determined without extensions) for the year in which you first carried on the activity or, if earlier, within 60 days after receiving written notice from the Internal Revenue Service proposing to disallow deductions attributable to the activity. Can i file 1040ez online More information. Can i file 1040ez online   For more information about the rules for an activity not engaged in for profit, see Not-for-Profit Activities in chapter 1 of Publication 535. Can i file 1040ez online Example—Property Changed to Rental Use In January, Eileen Johnson bought a condominium apartment to live in. Can i file 1040ez online Instead of selling the house she had been living in, she decided to change it to rental property. Can i file 1040ez online Eileen selected a tenant and started renting the house on February 1. Can i file 1040ez online Eileen charges $750 a month for rent and collects it herself. Can i file 1040ez online Eileen also received a $750 security deposit from her tenant. Can i file 1040ez online Because she plans to return it to her tenant at the end of the lease, she does not include it in her income. Can i file 1040ez online Her rental expenses for the year are as follows. Can i file 1040ez online   Mortgage interest $1,800     Fire insurance (1-year policy) 100     Miscellaneous repairs (after renting) 297     Real estate taxes imposed and paid 1,200   Eileen must divide the real estate taxes, mortgage interest, and fire insurance between the personal use of the property and the rental use of the property. Can i file 1040ez online She can deduct eleven-twelfths of these expenses as rental expenses. Can i file 1040ez online She can include the balance of the allowable taxes and mortgage interest on Schedule A (Form 1040) if she itemizes. Can i file 1040ez online She cannot deduct the balance of the fire insurance because it is a personal expense. Can i file 1040ez online Eileen bought this house in 1984 for $35,000. Can i file 1040ez online Her property tax was based on assessed values of $10,000 for the land and $25,000 for the house. Can i file 1040ez online Before changing it to rental property, Eileen added several improvements to the house. Can i file 1040ez online She figures her adjusted basis as follows:   Improvements Cost     House $25,000     Remodeled kitchen 4,200     Recreation room 5,800     New roof 1,600     Patio and deck 2,400     Adjusted basis $39,000   On February 1, when Eileen changed her house to rental property, the property had a fair market value of $152,000. Can i file 1040ez online Of this amount, $35,000 was for the land and $117,000 was for the house. Can i file 1040ez online Because Eileen's adjusted basis is less than the fair market value on the date of the change, Eileen uses $39,000 as her basis for depreciation. Can i file 1040ez online As specified for residential rental property, Eileen must use the straight line method of depreciation over the GDS or ADS recovery period. Can i file 1040ez online She chooses the GDS recovery period of 27. Can i file 1040ez online 5 years. Can i file 1040ez online She uses Table 2-2d to find her depreciation percentage. Can i file 1040ez online Since she placed the property in service in February, the percentage is 3. Can i file 1040ez online 182%. Can i file 1040ez online On April 1, Eileen bought a new dishwasher for the rental property at a cost of $425. Can i file 1040ez online The dishwasher is personal property used in a rental real estate activity, which has a 5-year recovery period. Can i file 1040ez online She uses Table 2-2a to find the percentage for Year 1 under “Half-year convention” (20%) to figure her depreciation deduction. Can i file 1040ez online On May 1, Eileen paid $4,000 to have a furnace installed in the house. Can i file 1040ez online The furnace is residential rental property. Can i file 1040ez online Because she placed the property in service in May, the percentage from Table 2-2d is 2. Can i file 1040ez online 273%. Can i file 1040ez online Eileen figures her net rental income or loss for the house as follows: Total rental income received  ($750 × 11) $8,250 Minus: Expenses     Mortgage interest ($1,800 × 11/12) $1,650   Fire insurance ($100 × 11/12) 92   Miscellaneous repairs 297   Real estate taxes ($1,200 × 11/12) 1,100   Total expenses 3,139 Balance $5,111 Minus: Depreciation     House ($39,000 × . Can i file 1040ez online 03182) $1,241   Dishwasher ($425 × . Can i file 1040ez online 20) 85   Furnace ($4,000 × . Can i file 1040ez online 02273) 91   Total depreciation 1,417 Net rental income for house   $3,694       Eileen uses Schedule E, Part I, to report her rental income and expenses. Can i file 1040ez online She enters her income, expenses, and depreciation for the house in the column for Property A. Can i file 1040ez online Since all property was placed in service this year, Eileen must use Form 4562 to figure the depreciation. Can i file 1040ez online See the Instructions for Form 4562 for more information on preparing the form. Can i file 1040ez online Prev  Up  Next   Home   More Online Publications
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The Can I File 1040ez Online

Can i file 1040ez online 21. Can i file 1040ez online   Medical and Dental Expenses Table of Contents What's New Introduction Useful Items - You may want to see: What Are Medical Expenses? What Expenses Can You Include This Year?Community property states. Can i file 1040ez online How Much of the Expenses Can You Deduct? Whose Medical Expenses Can You Include?Yourself Spouse Dependent Decedent What Medical Expenses Are Includible?Insurance Premiums Meals and Lodging Transportation Disabled Dependent Care Expenses How Do You Treat Reimbursements?Insurance Reimbursement Damages for Personal Injuries How Do You Figure and Report the Deduction on Your Tax Return?What Tax Form Do You Use? Impairment-Related Work Expenses Health Insurance Costs for Self-Employed Persons What's New Medical and dental expenses. Can i file 1040ez online  Beginning January 1, 2013, you can deduct only the part of your medical and dental expenses that exceed 10% of your adjusted gross income (AGI) (7. Can i file 1040ez online 5% if either you or your spouse is age 65 or older). Can i file 1040ez online Standard mileage rate. Can i file 1040ez online  The standard mileage rate allowed for operating expenses for a car when you use it for medical reasons is 24 cents per mile. Can i file 1040ez online See Transportation under What Medical Expenses Are Includible. Can i file 1040ez online Introduction This chapter will help you determine the following. Can i file 1040ez online What medical expenses are. Can i file 1040ez online What expenses you can include this year. Can i file 1040ez online How much of the expenses you can deduct. Can i file 1040ez online Whose medical expenses you can include. Can i file 1040ez online What medical expenses are includible. Can i file 1040ez online How to treat reimbursements. Can i file 1040ez online How to report the deduction on your tax return. Can i file 1040ez online How to report impairment-related work expenses. Can i file 1040ez online How to report health insurance costs if you are self-employed. Can i file 1040ez online Useful Items - You may want to see: Publications 502 Medical and Dental Expenses 969 Health Savings Accounts and Other Tax-Favored Health Plans Form (and Instructions) Schedule A (Form 1040) Itemized Deductions What Are Medical Expenses? Medical expenses are the costs of diagnosis, cure, mitigation, treatment, or prevention of disease, and the costs for treatments affecting any part or function of the body. Can i file 1040ez online These expenses include payments for legal medical services rendered by physicians, surgeons, dentists, and other medical practitioners. Can i file 1040ez online They include the costs of equipment, supplies, and diagnostic devices needed for these purposes. Can i file 1040ez online Medical care expenses must be primarily to alleviate or prevent a physical or mental defect or illness. Can i file 1040ez online They do not include expenses that are merely beneficial to general health, such as vitamins or a vacation. Can i file 1040ez online 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. Can i file 1040ez online Medical expenses also include amounts paid for qualified long-term care services and limited amounts paid for any qualified long-term care insurance contract. Can i file 1040ez online 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. Can i file 1040ez online If you pay medical expenses by check, the day you mail or deliver the check generally is the date of payment. Can i file 1040ez online 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. Can i file 1040ez online 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. Can i file 1040ez online Separate returns. Can i file 1040ez online   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. Can i file 1040ez online 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. Can i file 1040ez online Community property states. Can i file 1040ez online   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. Can i file 1040ez online Each of you should include half the expenses. Can i file 1040ez online If medical expenses are paid out of the separate funds of one individual, only the individual who paid the medical expenses can include them. Can i file 1040ez online If you live in a community property state, and are not filing a joint return, see Publication 555, Community Property. Can i file 1040ez online How Much of the Expenses Can You Deduct? Generally, you can deduct on Schedule A (Form 1040) only the amount of your medical and dental expenses that is more than 10% of your AGI (7. Can i file 1040ez online 5% of your AGI if either you or your spouse is age 65 or older)(Form 1040, line 38). Can i file 1040ez online Example. Can i file 1040ez online You are unmarried and under age 65 and your AGI is $40,000, 10% of which is $4,000. Can i file 1040ez online You paid medical expenses of $2,500. Can i file 1040ez online You cannot deduct any of your medical expenses because they are not more than 10% of your AGI. Can i file 1040ez online 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. Can i file 1040ez online There are different rules for decedents and for individuals who are the subject of multiple support agreements. Can i file 1040ez online See Support claimed under a multiple support agreement , later. Can i file 1040ez online Yourself You can include medical expenses you paid for yourself. Can i file 1040ez online Spouse You can include medical expenses you paid for your spouse. Can i file 1040ez online 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. Can i file 1040ez online Example 1. Can i file 1040ez online Mary received medical treatment before she married Bill. Can i file 1040ez online Bill paid for the treatment after they married. Can i file 1040ez online Bill can include these expenses in figuring his medical expense deduction even if Bill and Mary file separate returns. Can i file 1040ez online If Mary had paid the expenses, Bill could not include Mary's expenses in his separate return. Can i file 1040ez online Mary would include the amounts she paid during the year in her separate return. Can i file 1040ez online If they filed a joint return, the medical expenses both paid during the year would be used to figure their medical expense deduction. Can i file 1040ez online Example 2. Can i file 1040ez online This year, John paid medical expenses for his wife Louise, who died last year. Can i file 1040ez online John married Belle this year and they file a joint return. Can i file 1040ez online 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. Can i file 1040ez online Dependent You can include medical expenses you paid for your dependent. Can i file 1040ez online 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. Can i file 1040ez online A person generally qualifies as your dependent for purposes of the medical expense deduction if both of the following requirements are met. Can i file 1040ez online The person was a qualifying child (defined later) or a qualifying relative (defined later), and The person was a U. Can i file 1040ez online S. Can i file 1040ez online citizen or national, or a resident of the United States, Canada, or Mexico. Can i file 1040ez online If your qualifying child was adopted, see Exception for adopted child , next. Can i file 1040ez online 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. Can i file 1040ez online Exception for adopted child. Can i file 1040ez online   If you are a U. Can i file 1040ez online S. Can i file 1040ez online citizen or U. Can i file 1040ez online S. Can i file 1040ez online 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. Can i file 1040ez online S. Can i file 1040ez online citizen or national or a resident of the United States, Canada, or Mexico. Can i file 1040ez online Qualifying Child A qualifying child is a child who: Is your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, half brother, half sister, or a descendant of any of them (for example, your grandchild, niece, or nephew), Was: Under age 19 at the end of 2013 and younger than you (or your spouse, if filing jointly), Under age 24 at the end of 2013, a full-time student, and younger than you (or your spouse, if filing jointly), or Any age and permanently and totally disabled, Lived with you for more than half of 2013, Did not provide over half of his or her own support for 2013, and Did not file a joint return, or, if he or she did, it was only to claim a refund. Can i file 1040ez online Adopted child. Can i file 1040ez online   A legally adopted child is treated as your own child. Can i file 1040ez online This includes a child lawfully placed with you for legal adoption. Can i file 1040ez online   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. Can i file 1040ez online   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. Can i file 1040ez online   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. Can i file 1040ez online    You may be able to take an adoption credit for other expenses related to an adoption. Can i file 1040ez online See the Instructions for Form 8839, Qualified Adoption Expenses, for more information. Can i file 1040ez online Child of divorced or separated parents. Can i file 1040ez online   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. Can i file 1040ez online 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. Can i file 1040ez online This does not apply if the child's exemption is being claimed under a multiple support agreement (discussed later). Can i file 1040ez online Qualifying Relative A qualifying relative is a person: Who is your: Son, daughter, stepchild, foster child, or a descendant of any of them (for example, your grandchild), Brother, sister, half brother, half sister, or a son or daughter of either of them, Father, mother, or an ancestor or sibling of either of them (for example, your grandmother, grandfather, aunt, or uncle), Stepbrother, stepsister, stepfather, stepmother, son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law, or Any other person (other than your spouse) who lived with you all year as a member of your household if your relationship did not violate local law, Who was not a qualifying child (see Qualifying Child earlier) of any other person for 2013, and For whom you provided over half of the support in 2013. Can i file 1040ez online But see Child of divorced or separated parents , earlier, and Support claimed under a multiple support agreement, next. Can i file 1040ez online Support claimed under a multiple support agreement. Can i file 1040ez online   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. Can i file 1040ez online 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. Can i file 1040ez online   Any medical expenses paid by others who joined you in the agreement cannot be included as medical expenses by anyone. Can i file 1040ez online However, you can include the entire unreimbursed amount you paid for medical expenses. Can i file 1040ez online Example. Can i file 1040ez online You and your three brothers each provide one-fourth of your mother's total support. Can i file 1040ez online Under a multiple support agreement, you treat your mother as your dependent. Can i file 1040ez online You paid all of her medical expenses. Can i file 1040ez online Your brothers reimbursed you for three-fourths of these expenses. Can i file 1040ez online In figuring your medical expense deduction, you can include only one-fourth of your mother's medical expenses. Can i file 1040ez online Your brothers cannot include any part of the expenses. Can i file 1040ez online 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. Can i file 1040ez online 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. Can i file 1040ez online This includes expenses for the decedent's spouse and dependents as well as for the decedent. Can i file 1040ez online 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. Can i file 1040ez online The expenses must be paid within the 1-year period beginning with the day after the date of death. Can i file 1040ez online 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. Can i file 1040ez online 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. Can i file 1040ez online Amended returns and claims for refund are discussed in chapter 1. Can i file 1040ez online 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. Can i file 1040ez online 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. Can i file 1040ez online What Medical Expenses Are Includible? Use Table 21-1, later, as a guide to determine which medical and dental expenses you can include on Schedule A (Form 1040). Can i file 1040ez online This table does not include all possible medical expenses. Can i file 1040ez online To determine if an expense not listed can be included in figuring your medical expense deduction, see What Are Medical Expenses , earlier. Can i file 1040ez online Insurance Premiums You can include in medical expenses insurance premiums you pay for policies that cover medical care. Can i file 1040ez online 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). Can i file 1040ez online See Qualified Long-Term Care Insurance Contracts in Publication 502. Can i file 1040ez online 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. Can i file 1040ez online The cost of the medical part must be separately stated in the insurance contract or given to you in a separate statement. Can i file 1040ez online Note. Can i file 1040ez online When figuring the amount of insurance premiums you can include in medical expenses on Schedule A, do not include any health coverage tax credit advance payments shown in box 1 of Form 1099-H, Health Coverage Tax Credit (HCTC) Advance Payments. Can i file 1040ez online Also, do not include insurance premiums attributable to a nondependent child under age 27 if your premiums increased as a result of adding this child to your policy. Can i file 1040ez online Employer-sponsored health insurance plan. Can i file 1040ez online   Do not include in your medical and dental expenses any insurance premiums paid by an employer-sponsored health insurance plan unless the premiums are included in box 1 of your Form W-2. Can i file 1040ez online Also, do not include any other medical and dental expenses paid by the plan unless the amount paid is included in box 1 of your Form W-2. Can i file 1040ez online Example. Can i file 1040ez online You are a federal employee participating in the premium conversion plan of the Federal Employee Health Benefits (FEHB) program. Can i file 1040ez online Your share of the FEHB premium is paid by making a pre-tax reduction in your salary. Can i file 1040ez online 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. Can i file 1040ez online Long-term care services. Can i file 1040ez online   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. Can i file 1040ez online This amount will be reported as wages in box 1 of your Form W-2. Can i file 1040ez online Health reimbursement arrangement (HRA). Can i file 1040ez online   If you have medical expenses that are reimbursed by a health reimbursement arrangement, you cannot include those expenses in your medical expenses. Can i file 1040ez online This is because an HRA is funded solely by the employer. Can i file 1040ez online Retired public safety officers. Can i file 1040ez online   If you are a retired public safety officer, do not include as medical expenses any health or long-term care premiums that you elected to have paid with tax-free distributions from your retirement plan. Can i file 1040ez online This applies only to distributions that would otherwise be included in income. Can i file 1040ez online Medicare A. Can i file 1040ez online   If you are covered under social security (or if you are a government employee who paid Medicare tax), you are enrolled in Medicare A. Can i file 1040ez online The payroll tax paid for Medicare A is not a medical expense. Can i file 1040ez online   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. Can i file 1040ez online In this situation you can include the premiums you paid for Medicare A as a medical expense. Can i file 1040ez online Medicare B. Can i file 1040ez online   Medicare B is supplemental medical insurance. Can i file 1040ez online Premiums you pay for Medicare B are a medical expense. Can i file 1040ez online Check the information you received from the Social Security Administration to find out your premium. Can i file 1040ez online Medicare D. Can i file 1040ez online    Medicare D is a voluntary prescription drug insurance program for persons with Medicare A or B. Can i file 1040ez online You can include as a medical expense premiums you pay for Medicare D. Can i file 1040ez online Prepaid insurance premiums. Can i file 1040ez online   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). Can i file 1040ez online Unused sick leave used to pay premiums. Can i file 1040ez online   You must include in gross income cash payments you receive at the time of retirement for unused sick leave. Can i file 1040ez online 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. Can i file 1040ez online You can include this cost of continuing participation in the health plan as a medical expense. Can i file 1040ez online   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. Can i file 1040ez online You cannot include this cost of continuing participation in that health plan as a medical expense. Can i file 1040ez online Table 21-1. Can i file 1040ez online Medical and Dental Expenses Checklist. Can i file 1040ez online See Publication 502 for more information about these and other expenses. Can i file 1040ez online You can include: You cannot include: Bandages Birth control pills prescribed by your doctor Body scan Braille books Breast pump and supplies Capital expenses for equipment or improvements to your home needed for medical care (see the worksheet in Publication 502) Diagnostic devices Expenses of an organ donor Eye surgery—to promote the correct function of the eye Fertility enhancement, certain procedures Guide dogs or other animals aiding the blind, deaf, and disabled Hospital services fees (lab work, therapy, nursing services, surgery, etc. Can i file 1040ez online ) Lead-based paint removal Legal abortion Legal operation to prevent having children such as a vasectomy or tubal ligation Long-term care contracts, qualified Meals and lodging provided by a hospital during medical treatment Medical services fees (from doctors, dentists, surgeons, specialists, and other medical practitioners) Medicare Part D premiums Medical and hospital insurance premiums Nursing services Oxygen equipment and oxygen Part of life-care fee paid to retirement home designated for medical care Physical examination Pregnancy test kit Prescription medicines (prescribed by a doctor) and insulin Psychiatric and psychological treatment Social security tax, Medicare tax, FUTA, and state employment tax for worker providing medical care (see Wages for nursing services, below) Special items (artificial limbs, false teeth, eye-glasses, contact lenses, hearing aids, crutches, wheelchair, etc. Can i file 1040ez online ) Special education for mentally or physically disabled persons Stop-smoking programs Transportation for needed medical care Treatment at a drug or alcohol center (includes meals and lodging provided by the center) Wages for nursing services Weight-loss, certain expenses for obesity Baby sitting and childcare Bottled water Contributions to Archer MSAs (see Publication 969) Diaper service Expenses for your general health (even if following your doctor's advice) such as— —Health club dues —Household help (even if recommended by a doctor) —Social activities, such as dancing or swimming lessons —Trip for general health improvement Flexible spending account reimbursements for medical expenses (if contributions were on a pre-tax basis) Funeral, burial, or cremation expenses Health savings account payments for medical expenses Illegal operation, treatment, or medicine Life insurance or income protection policies, or policies providing payment for loss of life, limb, sight, etc. Can i file 1040ez online Maternity clothes Medical insurance included in a car insurance policy covering all persons injured in or by your car Medicine you buy without a prescription Nursing care for a healthy baby Prescription drugs you brought in (or ordered shipped) from another country, in most cases Nutritional supplements, vitamins, herbal supplements, “natural medicines,” etc. Can i file 1040ez online , unless recommended by a medical practitioner as a treatment for a specific medical condition diagnosed by a physician Surgery for purely cosmetic reasons Toothpaste, toiletries, cosmetics, etc. Can i file 1040ez online Teeth whitening Weight-loss expenses not for the treatment of obesity or other disease Meals and Lodging You can include in medical expenses the cost of meals and lodging at a hospital or similar institution if a principal reason for being there is to get medical care. Can i file 1040ez online See Nursing home , later. Can i file 1040ez online You may be able to include in medical expenses the cost of lodging not provided in a hospital or similar institution. Can i file 1040ez online You can include the cost of such lodging while away from home if all of the following requirements are met. Can i file 1040ez online The lodging is primarily for and essential to medical care. Can i file 1040ez online 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. Can i file 1040ez online The lodging is not lavish or extravagant under the circumstances. Can i file 1040ez online There is no significant element of personal pleasure, recreation, or vacation in the travel away from home. Can i file 1040ez online The amount you include in medical expenses for lodging cannot be more than $50 for each night for each person. Can i file 1040ez online You can include lodging for a person traveling with the person receiving the medical care. Can i file 1040ez online 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. Can i file 1040ez online Meals are not included. Can i file 1040ez online Nursing home. Can i file 1040ez online   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. Can i file 1040ez online This includes the cost of meals and lodging in the home if a principal reason for being there is to get medical care. Can i file 1040ez online   Do not include the cost of meals and lodging if the reason for being in the home is personal. Can i file 1040ez online You can, however, include in medical expenses the part of the cost that is for medical or nursing care. Can i file 1040ez online Transportation Include in medical expenses amounts paid for transportation primarily for, and essential to, medical care. Can i file 1040ez online 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. Can i file 1040ez online Car expenses. Can i file 1040ez online   You can include out-of-pocket expenses, such as the cost of gas and oil, when you use your car for medical reasons. Can i file 1040ez online You cannot include depreciation, insurance, general repair, or maintenance expenses. Can i file 1040ez online   If you do not want to use your actual expenses for 2013, you can use the standard medical mileage rate of 24 cents per mile. Can i file 1040ez online    You can also include parking fees and tolls. Can i file 1040ez online You can add these fees and tolls to your medical expenses whether you use actual expenses or use the standard mileage rate. Can i file 1040ez online Example. Can i file 1040ez online In 2013, Bill Jones drove 2,800 miles for medical reasons. Can i file 1040ez online He spent $500 for gas, $30 for oil, and $100 for tolls and parking. Can i file 1040ez online He wants to figure the amount he can include in medical expenses both ways to see which gives him the greater deduction. Can i file 1040ez online He figures the actual expenses first. Can i file 1040ez online He adds the $500 for gas, the $30 for oil, and the $100 for tolls and parking for a total of $630. Can i file 1040ez online He then figures the standard mileage amount. Can i file 1040ez online He multiplies 2,800 miles by 24 cents a mile for a total of $672. Can i file 1040ez online He then adds the $100 tolls and parking for a total of $772. Can i file 1040ez online 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. Can i file 1040ez online Transportation expenses you cannot include. Can i file 1040ez online   You cannot include in medical expenses the cost of transportation in the following situations. Can i file 1040ez online Going to and from work, even if your condition requires an unusual means of transportation. Can i file 1040ez online Travel for purely personal reasons to another city for an operation or other medical care. Can i file 1040ez online Travel that is merely for the general improvement of one's health. Can i file 1040ez online The costs of operating a specially equipped car for other than medical reasons. Can i file 1040ez online 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. Can i file 1040ez online (See chapter 32 and Publication 503, Child and Dependent Care Expenses. Can i file 1040ez online ) 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. Can i file 1040ez online How Do You Treat Reimbursements? You can include in medical expenses only those amounts paid during the taxable year for which you received no insurance or other reimbursement. Can i file 1040ez online 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. Can i file 1040ez online This includes payments from Medicare. Can i file 1040ez online Even if a policy provides reimbursement for only certain specific medical expenses, you must use amounts you receive from that policy to reduce your total medical expenses, including those it does not reimburse. Can i file 1040ez online Example. Can i file 1040ez online You have insurance policies that cover your hospital and doctors' bills but not your nursing bills. Can i file 1040ez online The insurance you receive for the hospital and doctors' bills is more than their charges. Can i file 1040ez online 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. Can i file 1040ez online Health reimbursement arrangement (HRA). Can i file 1040ez online   A health reimbursement arrangement is an employer-funded plan that reimburses employees for medical care expenses and allows unused amounts to be carried forward. Can i file 1040ez online An HRA is funded solely by the employer and the reimbursements for medical expenses, up to a maximum dollar amount for a coverage period, are not included in your income. Can i file 1040ez online Other reimbursements. Can i file 1040ez online   Generally, you do not reduce medical expenses by payments you receive for: Permanent loss or loss of use of a member or function of the body (loss of limb, sight, hearing, etc. Can i file 1040ez online ) or disfigurement to the extent the payment is based on the nature of the injury without regard to the amount of time lost from work, or Loss of earnings. Can i file 1040ez online   You must, however, reduce your medical expenses by any part of these payments that is designated for medical costs. Can i file 1040ez online See How Do You Figure and Report the Deduction on Your Tax Return , later. Can i file 1040ez online   For how to treat damages received for personal injury or sickness, see Damages for Personal Injuries , later. Can i file 1040ez online You do not have a medical deduction if you are reimbursed for all of your medical expenses for the year. Can i file 1040ez online Excess reimbursement. Can i file 1040ez online   If you are reimbursed more than your medical expenses, you may have to include the excess in income. Can i file 1040ez online You may want to use Figure 21-A to help you decide if any of your reimbursement is taxable. Can i file 1040ez online Premiums paid by you. Can i file 1040ez online   If you pay either the entire premium for your medical insurance or all of the costs of a plan similar to medical insurance and your insurance payments or other reimbursements are more than your total medical expenses for the year, you have an excess reimbursement. Can i file 1040ez online Generally, you do not include the excess reimbursement in your gross income. Can i file 1040ez online Premiums paid by you and your employer. Can i file 1040ez online   If both you and your employer contribute to your medical insurance plan and your employer's contributions are not included in your gross income, you must include in your gross income the part of your excess reimbursement that is from your employer's contribution. Can i file 1040ez online   See Publication 502 to figure the amount of the excess reimbursement you must include in gross income. Can i file 1040ez online Reimbursement in a later year. Can i file 1040ez online   If you are reimbursed in a later year for medical expenses you deducted in an earlier year, you generally must report the reimbursement as income up to the amount you previously deducted as medical expenses. Can i file 1040ez online   However, do not report as income the amount of reimbursement you received up to the amount of your medical deductions that did not reduce your tax for the earlier year. Can i file 1040ez online For more information about the recovery of an amount that you claimed as an itemized deduction in an earlier year, see Itemized Deduction Recoveries in chapter 12. Can i file 1040ez online Figure 21-A. Can i file 1040ez online Is Your Excess Medical Reimbursement Taxable? Please click here for the text description of the image. Can i file 1040ez online Figure 21-A. Can i file 1040ez online Is Your Excess Medical Reimbursement Taxable? Medical expenses not deducted. Can i file 1040ez online   If you did not deduct a medical expense in the year you paid it because your medical expenses were not more than 10% of your AGI (7. Can i file 1040ez online 5% of your AGI if either you or your spouse was age 65 or older), or because you did not itemize deductions, do not include the reimbursement up to the amount of the expense in income. Can i file 1040ez online However, if the reimbursement is more than the expense, see Excess reimbursement , earlier. Can i file 1040ez online Example. Can i file 1040ez online For 2013, you were unmarried and under age 65 and you had medical expenses of $500. Can i file 1040ez online You cannot deduct the $500 because it is less than 10% of your AGI. Can i file 1040ez online If, in a later year, you are reimbursed for any of the $500 in medical expenses, you do not include the amount reimbursed in your gross income. Can i file 1040ez online Damages for Personal Injuries If you receive an amount in settlement of a personal injury suit, part of that award may be for medical expenses that you deducted in an earlier year. Can i file 1040ez online If it is, you must include that part in your income in the year you receive it to the extent it reduced your taxable income in the earlier year. Can i file 1040ez online See Reimbursement in a Later Year , discussed under How Do You Treat Reimbursements, earlier. Can i file 1040ez online Future medical expenses. Can i file 1040ez online   If you receive an amount in settlement of a damage suit for personal injuries, part of that award may be for future medical expenses. Can i file 1040ez online If it is, you must reduce any future medical expenses for these injuries until the amount you received has been completely used. Can i file 1040ez online How Do You Figure and Report the Deduction on Your Tax Return? Once you have determined which medical expenses you can include, you figure and report the deduction on your tax return. Can i file 1040ez online What Tax Form Do You Use? You figure your medical expense deduction on Schedule A (Form 1040). Can i file 1040ez online You cannot claim medical expenses on Form 1040A or Form 1040EZ. Can i file 1040ez online If you need more information on itemized deductions or you are not sure if you can itemize, see chapter 20. Can i file 1040ez online Enter the amount you paid for medical and dental expenses on Schedule A (Form 1040). Can i file 1040ez online This should be your expenses that were not reimbursed by insurance or any other sources. Can i file 1040ez online Generally, you can deduct only the amount of your medical and dental expenses that is more than 10% of your AGI (7. Can i file 1040ez online 5% if either you or your spouse was age 65 or older) shown on line 38, Form 1040. Can i file 1040ez online Impairment-Related Work Expenses If you are a person with a disability, you can take a business deduction for expenses that are necessary for you to be able to work. Can i file 1040ez online If you take a business deduction for impairment-related work expenses, do not take a medical deduction for the same expenses. Can i file 1040ez online You have a disability if you have: A physical or mental disability (for example, blindness or deafness) that functionally limits your being employed, or A physical or mental impairment (for example, a sight or hearing impairment) that substantially limits one or more of your major life activities, such as performing manual tasks, walking, speaking, breathing, learning, or working. Can i file 1040ez online Impairment-related expenses defined. Can i file 1040ez online   Impairment-related expenses are those ordinary and necessary business expenses that are: Necessary for you to do your work satisfactorily, For goods and services not required or used, other than incidentally, in your personal activities, and Not specifically covered under other income tax laws. Can i file 1040ez online Where to report. Can i file 1040ez online   If you are self-employed, deduct the business expenses on the appropriate form (Schedule C, C-EZ, E, or F) used to report your business income and expenses. Can i file 1040ez online   If you are an employee, complete Form 2106, Employee Business Expenses, or Form 2106-EZ, Unreimbursed Employee Business Expenses. Can i file 1040ez online Enter on Schedule A (Form 1040), that part of the amount on Form 2106, or Form 2106-EZ, that is related to your impairment. Can i file 1040ez online Enter the amount that is unrelated to your impairment also on Schedule A (Form 1040). Can i file 1040ez online Your impairment-related work expenses are not subject to the 2%-of-adjusted-gross-income limit that applies to other employee business expenses. Can i file 1040ez online Example. Can i file 1040ez online You are blind. Can i file 1040ez online You must use a reader to do your work. Can i file 1040ez online You use the reader both during your regular working hours at your place of work and outside your regular working hours away from your place of work. Can i file 1040ez online The reader's services are only for your work. Can i file 1040ez online You can deduct your expenses for the reader as business expenses. Can i file 1040ez online Health Insurance Costs for Self-Employed Persons If you were self-employed and had a net profit for the year, you may be able to deduct, as an adjustment to income, amounts paid for medical and qualified long-term care insurance on behalf of yourself, your spouse, your dependents, and, your children who were under age 27 at the end of 2013. Can i file 1040ez online For this purpose, you were self-employed if you were a general partner (or a limited partner receiving guaranteed payments) or you received wages from an S corporation in which you were more than a 2% shareholder. Can i file 1040ez online The insurance plan must be established under your trade or business and the deduction cannot be more than your earned income from that trade or business. Can i file 1040ez online You cannot deduct payments for medical insurance for any month in which you were eligible to participate in a health plan subsidized by your employer, your spouse's employer, or, an employer of your dependent or your child under age 27 at the end of 2013. Can i file 1040ez online You cannot deduct payments for a qualified long-term care insurance contract for any month in which you were eligible to participate in a long-term care insurance plan subsidized by your employer or your spouse's employer. Can i file 1040ez online If you qualify to take the deduction, use the Self-Employed Health Insurance Deduction Worksheet in the Form 1040 instructions to figure the amount you can deduct. Can i file 1040ez online But if any of the following applies, do not use that worksheet. Can i file 1040ez online You had more than one source of income subject to self-employment tax. Can i file 1040ez online You file Form 2555, Foreign Earned Income, or Form 2555-EZ, Foreign Earned Income Exclusion. Can i file 1040ez online You are using amounts paid for qualified long-term care insurance to figure the deduction. Can i file 1040ez online If you cannot use the worksheet in the Form 1040 instructions, use the worksheet in Publication 535, Business Expenses, to figure your deduction. Can i file 1040ez online Note. Can i file 1040ez online When figuring the amount you can deduct for insurance premiums, do not include any advance payments shown on Form 1099-H, Health Coverage Tax Credit (HCTC) Advance Payments. Can i file 1040ez online If you are claiming the health coverage tax credit, subtract the amount shown on Form 8885, from the total insurance premiums you paid. Can i file 1040ez online Do not include amounts paid for health insurance coverage with retirement plan distributions that were tax-free because you are a retired public safety officer. Can i file 1040ez online Where to report. Can i file 1040ez online    You take this deduction on Form 1040. Can i file 1040ez online If you itemize your deductions and do not claim 100% of your self-employed health insurance on Form 1040, you can generally include any remaining premiums with all other medical expenses on Schedule A (Form 1040), subject to the 10% limit (7. Can i file 1040ez online 5% if either you or your spouse was age 65 or older). Can i file 1040ez online See Self-Employed Health Insurance Deduction in chapter 6 of Publication 535, Business Expenses, and Medical and Dental Expenses in the Instructions for Schedule A (Form 1040), for more information. Can i file 1040ez online Prev  Up  Next   Home   More Online Publications