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Can I File 1040x Online

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Can I File 1040x Online

Can i file 1040x online Publication 502 - Main Content Table of Contents What Are Medical Expenses? What Expenses Can You Include This Year?Community property states. Can i file 1040x online 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. Can i file 1040x online These expenses include payments for legal medical services rendered by physicians, surgeons, dentists, and other medical practitioners. Can i file 1040x online They include the costs of equipment, supplies, and diagnostic devices needed for these purposes. Can i file 1040x online Medical care expenses must be primarily to alleviate or prevent a physical or mental defect or illness. Can i file 1040x online They do not include expenses that are merely beneficial to general health, such as vitamins or a vacation. Can i file 1040x 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 1040x 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 1040x 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 1040x online (But see Decedent under Whose Medical Expenses Can You Include, for an exception. Can i file 1040x 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 1040x 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 1040x 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 1040x online 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. Can i file 1040x online S. Can i file 1040x online Individual Income Tax Return, for the year in which you overlooked the expense. Can i file 1040x online Do not claim the expense on this year's return. Can i file 1040x online 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. Can i file 1040x online You cannot include medical expenses that were paid by insurance companies or other sources. Can i file 1040x online This is true whether the payments were made directly to you, to the patient, or to the provider of the medical services. Can i file 1040x online Separate returns. Can i file 1040x 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 1040x 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 1040x online Community property states. Can i file 1040x 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 1040x online Generally, each of you should include half the expenses. Can i file 1040x 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 1040x online If you live in a community property state and are not filing a joint return, see Publication 555, Community Property. Can i file 1040x 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. Can i file 1040x online 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. Can i file 1040x online 5% of your AGI. Can i file 1040x online Example. Can i file 1040x online You are unmarried and were born after January 2, 1949, and your AGI is $40,000, 10% of which is $4,000. Can i file 1040x online You paid medical expenses of $2,500. Can i file 1040x online You cannot deduct any of your medical expenses because they are not more than 10% of your AGI. Can i file 1040x 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 1040x online There are different rules for decedents and for individuals who are the subject of multiple support agreements. Can i file 1040x online See Support claimed under a multiple support agreement , later under Qualifying Relative. Can i file 1040x online Spouse You can include medical expenses you paid for your spouse. Can i file 1040x 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 1040x online Example 1. Can i file 1040x online Mary received medical treatment before she married Bill. Can i file 1040x online Bill paid for the treatment after they married. Can i file 1040x online Bill can include these expenses in figuring his medical expense deduction even if Bill and Mary file separate returns. Can i file 1040x online If Mary had paid the expenses, Bill could not include Mary's expenses in his separate return. Can i file 1040x online Mary would include the amounts she paid during the year in her separate return. Can i file 1040x 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 1040x online Example 2. Can i file 1040x online This year, John paid medical expenses for his wife Louise, who died last year. Can i file 1040x online John married Belle this year and they file a joint return. Can i file 1040x 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 1040x online Dependent You can include medical expenses you paid for your dependent. Can i file 1040x 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 1040x 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 1040x online The person was a qualifying child (defined later) or a qualifying relative (defined later), and The person was a U. Can i file 1040x online S. Can i file 1040x online citizen or national or a resident of the United States, Canada, or Mexico. Can i file 1040x online If your qualifying child was adopted, see Exception for adopted child , later. Can i file 1040x 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 1040x online Exception for adopted child. Can i file 1040x online   If you are a U. Can i file 1040x online S. Can i file 1040x online 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. Can i file 1040x online S. Can i file 1040x online citizen or national, or a resident of the United States, Canada, or Mexico. Can i file 1040x 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, other than to claim a refund. Can i file 1040x online Adopted child. Can i file 1040x online   A legally adopted child is treated as your own child. Can i file 1040x online This child includes a child lawfully placed with you for legal adoption. Can i file 1040x 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 1040x 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 1040x 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 1040x online    You may be able to take a credit for other expenses related to an adoption. Can i file 1040x online See the Instructions for Form 8839, Qualified Adoption Expenses, for more information. Can i file 1040x online Child of divorced or separated parents. Can i file 1040x 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 1040x 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 1040x online This does not apply if the child's exemption is being claimed under a multiple support agreement (discussed later). Can i file 1040x online 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. Can i file 1040x online 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. Can i file 1040x online Support claimed under a multiple support agreement. Can i file 1040x 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 1040x 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 1040x online   Any medical expenses paid by others who joined you in the agreement cannot be included as medical expenses by anyone. Can i file 1040x online However, you can include the entire unreimbursed amount you paid for medical expenses. Can i file 1040x online Example. Can i file 1040x online You and your three brothers each provide one-fourth of your mother's total support. Can i file 1040x online Under a multiple support agreement, you treat your mother as your dependent. Can i file 1040x online You paid all of her medical expenses. Can i file 1040x online Your brothers repaid you for three-fourths of these expenses. Can i file 1040x online In figuring your medical expense deduction, you can include only one-fourth of your mother's medical expenses. Can i file 1040x online Your brothers cannot include any part of the expenses. Can i file 1040x 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 1040x 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 1040x online This includes expenses for the decedent's spouse and dependents as well as for the decedent. Can i file 1040x 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 1040x online The expenses must be paid within the 1-year period beginning with the day after the date of death. Can i file 1040x 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 1040x 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 1040x online 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. Can i file 1040x online 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. Can i file 1040x online Example. Can i file 1040x online John properly filed his 2012 income tax return. Can i file 1040x online He died in 2013 with unpaid medical expenses of $1,500 from 2012 and $1,800 in 2013. Can i file 1040x online 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. Can i file 1040x online The $1,800 of medical expenses from 2013 can be included on the decedent's final return for 2013. Can i file 1040x 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 1040x 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 1040x online What Medical Expenses Are Includible? Following is a list of items that you can include in figuring your medical expense deduction. Can i file 1040x online The items are listed in alphabetical order. Can i file 1040x online This list does not include all possible medical expenses. Can i file 1040x 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 1040x online Abortion You can include in medical expenses the amount you pay for a legal abortion. Can i file 1040x online Acupuncture You can include in medical expenses the amount you pay for acupuncture. Can i file 1040x online Alcoholism You can include in medical expenses amounts you pay for an inpatient's treatment at a therapeutic center for alcohol addiction. Can i file 1040x online This includes meals and lodging provided by the center during treatment. Can i file 1040x online 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. Can i file 1040x online Ambulance You can include in medical expenses amounts you pay for ambulance service. Can i file 1040x online Annual Physical Examination See Physical Examination , later. Can i file 1040x online Artificial Limb You can include in medical expenses the amount you pay for an artificial limb. Can i file 1040x online Artificial Teeth You can include in medical expenses the amount you pay for artificial teeth. Can i file 1040x online Bandages You can include in medical expenses the cost of medical supplies such as bandages. Can i file 1040x online Birth Control Pills You can include in medical expenses the amount you pay for birth control pills prescribed by a doctor. Can i file 1040x online Body Scan You can include in medical expenses the cost of an electronic body scan. Can i file 1040x online 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. Can i file 1040x online Breast Pumps and Supplies You can include in medical expenses the cost of breast pumps and supplies that assist lactation. Can i file 1040x online 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. Can i file 1040x online See Cosmetic Surgery , later. Can i file 1040x online 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. Can i file 1040x online The cost of permanent improvements that increase the value of your property may be partly included as a medical expense. Can i file 1040x online The cost of the improvement is reduced by the increase in the value of your property. Can i file 1040x online The difference is a medical expense. Can i file 1040x online If the value of your property is not increased by the improvement, the entire cost is included as a medical expense. Can i file 1040x online 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. Can i file 1040x online These improvements include, but are not limited to, the following items. Can i file 1040x online Constructing entrance or exit ramps for your home. Can i file 1040x online Widening doorways at entrances or exits to your home. Can i file 1040x online Widening or otherwise modifying hallways and interior doorways. Can i file 1040x online Installing railings, support bars, or other modifications to bathrooms. Can i file 1040x online Lowering or modifying kitchen cabinets and equipment. Can i file 1040x online Moving or modifying electrical outlets and fixtures. Can i file 1040x online Installing porch lifts and other forms of lifts (but elevators generally add value to the house). Can i file 1040x online Modifying fire alarms, smoke detectors, and other warning systems. Can i file 1040x online Modifying stairways. Can i file 1040x online Adding handrails or grab bars anywhere (whether or not in bathrooms). Can i file 1040x online Modifying hardware on doors. Can i file 1040x online Modifying areas in front of entrance and exit doorways. Can i file 1040x online Grading the ground to provide access to the residence. Can i file 1040x online Only reasonable costs to accommodate a home to a disabled condition are considered medical care. Can i file 1040x online Additional costs for personal motives, such as for architectural or aesthetic reasons, are not medical expenses. Can i file 1040x online Capital expense worksheet. Can i file 1040x online   Use Worksheet A to figure the amount of your capital expense to include in your medical expenses. Can i file 1040x online Worksheet A. Can i file 1040x online Capital Expense Worksheet Instructions: Use this worksheet to figure the amount, if any, of your medical expenses due to a home improvement. Can i file 1040x online 1. Can i file 1040x online Enter the amount you paid for the home improvement 1. Can i file 1040x online   2. Can i file 1040x online Enter the value of your home immediately after the improvement 2. Can i file 1040x online       3. Can i file 1040x online Enter the value of your home immediately before the improvement 3. Can i file 1040x online       4. Can i file 1040x online Subtract line 3 from line 2. Can i file 1040x online This is the increase in the value of your home due to the improvement 4. Can i file 1040x online     • If line 4 is more than or equal to line 1, you have no medical expenses due to the home improvement; stop here. Can i file 1040x online       • If line 4 is less than line 1, go to line 5. Can i file 1040x online     5. Can i file 1040x online Subtract line 4 from line 1. Can i file 1040x online These are your medical expenses due to the home improvement 5. Can i file 1040x online   Operation and upkeep. Can i file 1040x online   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. Can i file 1040x online This rule applies even if none or only part of the original cost of the capital asset qualified as a medical care expense. Can i file 1040x online Improvements to property rented by a person with a disability. Can i file 1040x online   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. Can i file 1040x online Example. Can i file 1040x online John has arthritis and a heart condition. Can i file 1040x online He cannot climb stairs or get into a bathtub. Can i file 1040x online On his doctor's advice, he installs a bathroom with a shower stall on the first floor of his two-story rented house. Can i file 1040x online The landlord did not pay any of the cost of buying and installing the special plumbing and did not lower the rent. Can i file 1040x online John can include in medical expenses the entire amount he paid. Can i file 1040x online 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. Can i file 1040x online Special design. Can i file 1040x online   You can include in medical expenses the difference between the cost of a regular car and a car specially designed to hold a wheelchair. Can i file 1040x online Cost of operation. Can i file 1040x online   The includible costs of using a car for medical reasons are explained under Transportation , later. Can i file 1040x online Chiropractor You can include in medical expenses fees you pay to a chiropractor for medical care. Can i file 1040x online Christian Science Practitioner You can include in medical expenses fees you pay to Christian Science practitioners for medical care. Can i file 1040x online Contact Lenses You can include in medical expenses amounts you pay for contact lenses needed for medical reasons. Can i file 1040x online You can also include the cost of equipment and materials required for using contact lenses, such as saline solution and enzyme cleaner. Can i file 1040x online See Eyeglasses and Eye Surgery , later. Can i file 1040x online Crutches You can include in medical expenses the amount you pay to buy or rent crutches. Can i file 1040x online Dental Treatment You can include in medical expenses the amounts you pay for the prevention and alleviation of dental disease. Can i file 1040x online 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. Can i file 1040x online Treatment to alleviate dental disease include services of a dentist for procedures such as X-rays, fillings, braces, extractions, dentures, and other dental ailments. Can i file 1040x online But see Teeth Whitening under What Expenses Are Not Includible, later. Can i file 1040x online Diagnostic Devices You can include in medical expenses the cost of devices used in diagnosing and treating illness and disease. Can i file 1040x online Example. Can i file 1040x online You have diabetes and use a blood sugar test kit to monitor your blood sugar level. Can i file 1040x online You can include the cost of the blood sugar test kit in your medical expenses. Can i file 1040x 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 1040x online (See Publication 503, Child and Dependent Care Expenses. Can i file 1040x 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 1040x online Drug Addiction You can include in medical expenses amounts you pay for an inpatient's treatment at a therapeutic center for drug addiction. Can i file 1040x online This includes meals and lodging at the center during treatment. Can i file 1040x online Drugs See Medicines , later. Can i file 1040x online Eye Exam You can include in medical expenses the amount you pay for eye examinations. Can i file 1040x online Eyeglasses You can include in medical expenses amounts you pay for eyeglasses and contact lenses needed for medical reasons. Can i file 1040x online See Contact Lenses , earlier, for more information. Can i file 1040x online 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. Can i file 1040x online Fertility Enhancement You can include in medical expenses the cost of the following procedures to overcome an inability to have children. Can i file 1040x online Procedures such as in vitro fertilization (including temporary storage of eggs or sperm). Can i file 1040x online Surgery, including an operation to reverse prior surgery that prevented the person operated on from having children. Can i file 1040x online Founder's Fee See Lifetime Care—Advance Payments , later. Can i file 1040x online 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. Can i file 1040x online 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. Can i file 1040x online 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. Can i file 1040x online 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. Can i file 1040x online These amounts are treated as medical insurance premiums. Can i file 1040x online See Insurance Premiums , later. Can i file 1040x online Hearing Aids You can include in medical expenses the cost of a hearing aid and batteries, repairs, and maintenance needed to operate it. Can i file 1040x online Home Care See Nursing Services , later. Can i file 1040x online Home Improvements See Capital Expenses , earlier. Can i file 1040x online 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. Can i file 1040x online This includes amounts paid for meals and lodging. Can i file 1040x online Also see Lodging , later. Can i file 1040x online Insurance Premiums You can include in medical expenses insurance premiums you pay for policies that cover medical care. Can i file 1040x 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 1040x online See Qualified Long-Term Care Insurance Contracts under Long-Term Care, later. Can i file 1040x 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 1040x 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 1040x online Health coverage tax credit. Can i file 1040x online   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. Can i file 1040x online 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. Can i file 1040x online S. Can i file 1040x online Treasury–HCTC,” or Any health coverage tax credit advance payments shown on Form 1099-H, Health Coverage Tax Credit (HCTC) Advance Payments. Can i file 1040x online 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. Can i file 1040x online 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. Can i file 1040x online Example. Can i file 1040x online You are a federal employee participating in the premium conversion plan of the Federal Employee Health Benefits (FEHB) program. Can i file 1040x online Your share of the FEHB premium is paid by making a pre-tax reduction in your salary. Can i file 1040x 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 1040x online Long-term care services. Can i file 1040x 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 1040x online This amount will be reported as wages on your Form W-2. Can i file 1040x online Retired public safety officers. Can i file 1040x online   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. Can i file 1040x online This applies only to distributions that would otherwise be included in income. Can i file 1040x online Health reimbursement arrangement (HRA). Can i file 1040x 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 1040x online This is because an HRA is funded solely by the employer. Can i file 1040x online 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. Can i file 1040x online The payroll tax paid for Medicare A is not a medical expense. Can i file 1040x 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 1040x online In this situation you can include the premiums you paid for Medicare A as a medical expense. Can i file 1040x online Medicare B Medicare B is a supplemental medical insurance. Can i file 1040x online Premiums you pay for Medicare B are a medical expense. Can i file 1040x online Check the information you received from the Social Security Administration to find out your premium. Can i file 1040x online Medicare D Medicare D is a voluntary prescription drug insurance program for persons with Medicare A or B. Can i file 1040x online You can include as a medical expense premiums you pay for Medicare D. Can i file 1040x online 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). Can i file 1040x online 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. Can i file 1040x 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 1040x online You can include this cost of continuing participation in the health plan as a medical expense. Can i file 1040x 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 1040x online You cannot include this cost of continuing participation in that health plan as a medical expense. Can i file 1040x online 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. Can i file 1040x online , 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. Can i file 1040x online Taxes imposed by any governmental unit, such as Medicare taxes, are not insurance premiums. Can i file 1040x online Coverage for nondependents. Can i file 1040x online   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. Can i file 1040x online 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. Can i file 1040x online  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. Can i file 1040x online 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. Can i file 1040x online Laboratory Fees You can include in medical expenses the amounts you pay for laboratory fees that are part of medical care. Can i file 1040x online Lactation Expenses See Breast Pumps and Supplies , earlier. Can i file 1040x online 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. Can i file 1040x online These surfaces must be in poor repair (peeling or cracking) or within the child's reach. Can i file 1040x online The cost of repainting the scraped area is not a medical expense. Can i file 1040x online If, instead of removing the paint, you cover the area with wallboard or paneling, treat these items as capital expenses. Can i file 1040x online See Capital Expenses , earlier. Can i file 1040x online Do not include the cost of painting the wallboard as a medical expense. Can i file 1040x online Learning Disability See Special Education , later. Can i file 1040x online Legal Fees You can include in medical expenses legal fees you paid that are necessary to authorize treatment for mental illness. Can i file 1040x online 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. Can i file 1040x online 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. Can i file 1040x online The part of the payment you include is the amount properly allocable to medical care. Can i file 1040x online 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. Can i file 1040x online You can use a statement from the retirement home to prove the amount properly allocable to medical care. Can i file 1040x online The statement must be based either on the home's prior experience or on information from a comparable home. Can i file 1040x online Dependents with disabilities. Can i file 1040x online   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. Can i file 1040x online The payments must be a condition for the institution's future acceptance of your child and must not be refundable. Can i file 1040x online Payments for future medical care. Can i file 1040x online   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. Can i file 1040x online This rule does not apply in situations where the future care is purchased in connection with obtaining lifetime care of the type described earlier. Can i file 1040x online 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. Can i file 1040x online See Nursing Home , later. Can i file 1040x 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 1040x online You can include the cost of such lodging while away from home if all of the following requirements are met. Can i file 1040x online The lodging is primarily for and essential to medical care. Can i file 1040x 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 1040x online The lodging is not lavish or extravagant under the circumstances. Can i file 1040x online There is no significant element of personal pleasure, recreation, or vacation in the travel away from home. Can i file 1040x online The amount you include in medical expenses for lodging cannot be more than $50 for each night for each person. Can i file 1040x online You can include lodging for a person traveling with the person receiving the medical care. Can i file 1040x 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 1040x online Meals are not included. Can i file 1040x online 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. Can i file 1040x online 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. Can i file 1040x online 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. Can i file 1040x online Chronically ill individual. Can i file 1040x online   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. Can i file 1040x online 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. Can i file 1040x online Activities of daily living are eating, toileting, transferring, bathing, dressing, and continence. Can i file 1040x online He or she requires substantial supervision to be protected from threats to health and safety due to severe cognitive impairment. Can i file 1040x online Maintenance and personal care services. Can i file 1040x online    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). Can i file 1040x online 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. Can i file 1040x online 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. Can i file 1040x online The amount of qualified long-term care premiums you can include is limited. Can i file 1040x online You can include the following as medical expenses on Schedule A (Form 1040). Can i file 1040x online Qualified long-term care premiums up to the following amounts. Can i file 1040x online Age 40 or under – $360. Can i file 1040x online Age 41 to 50 – $680. Can i file 1040x online Age 51 to 60 – $1,360. Can i file 1040x online Age 61 to 70 – $3,640. Can i file 1040x online Age 71 or over – $4,550. Can i file 1040x online Unreimbursed expenses for qualified long-term care services. Can i file 1040x online Note. Can i file 1040x online The limit on premiums is for each person. Can i file 1040x online 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. Can i file 1040x online 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. Can i file 1040x online You cannot include in medical expenses the cost of meals that are not part of inpatient care. Can i file 1040x online Also see Weight-Loss Program and Nutritional Supplements , later. Can i file 1040x online 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. Can i file 1040x online The costs of the medical conference must be primarily for and necessary to the medical care of you, your spouse, or your dependent. Can i file 1040x online The majority of the time spent at the conference must be spent attending sessions on medical information. Can i file 1040x online The cost of meals and lodging while attending the conference is not deductible as a medical expense. Can i file 1040x online 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. Can i file 1040x online Medicines You can include in medical expenses amounts you pay for prescribed medicines and drugs. Can i file 1040x online A prescribed drug is one that requires a prescription by a doctor for its use by an individual. Can i file 1040x online You can also include amounts you pay for insulin. Can i file 1040x online Except for insulin, you cannot include in medical expenses amounts you pay for a drug that is not prescribed. Can i file 1040x online Imported medicines and drugs. Can i file 1040x online   If you imported medicines or drugs from other countries, see Medicines and Drugs From Other Countries , under What Expenses Are Not Includible, later. Can i file 1040x online 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. Can i file 1040x 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 1040x online Do not include the cost of meals and lodging if the reason for being in the home is personal. Can i file 1040x online You can, however, include in medical expenses the part of the cost that is for medical or nursing care. Can i file 1040x online Nursing Services You can include in medical expenses wages and other amounts you pay for nursing services. Can i file 1040x online The services need not be performed by a nurse as long as the services are of a kind generally performed by a nurse. Can i file 1040x online 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. Can i file 1040x online These services can be provided in your home or another care facility. Can i file 1040x online Generally, only the amount spent for nursing services is a medical expense. Can i file 1040x online 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. Can i file 1040x online For example, because of your medical condition you pay a visiting nurse $300 per week for medical and household services. Can i file 1040x online She spends 10% of her time doing household services such as washing dishes and laundry. Can i file 1040x online You can include only $270 per week as medical expenses. Can i file 1040x online The $30 (10% × $300) allocated to household services cannot be included. Can i file 1040x online However, certain maintenance or personal care services provided for qualified long-term care can be included in medical expenses. Can i file 1040x online See Maintenance and personal care services under Long-Term Care, earlier. Can i file 1040x online 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. Can i file 1040x online See Publication 503. Can i file 1040x online You can also include in medical expenses part of the amount you pay for that attendant's meals. Can i file 1040x online Divide the food expense among the household members to find the cost of the attendant's food. Can i file 1040x online Then divide that cost in the same manner as in the preceding paragraph. Can i file 1040x online If you had to pay additional amounts for household upkeep because of the attendant, you can include the extra amounts with your medical expenses. Can i file 1040x online This includes extra rent or utilities you pay because you moved to a larger apartment to provide space for the attendant. Can i file 1040x online Employment taxes. Can i file 1040x online   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. Can i file 1040x online 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. Can i file 1040x online For information on employment tax responsibilities of household employers, see Publication 926, Household Employer's Tax Guide. Can i file 1040x online Operations You can include in medical expenses amounts you pay for legal operations that are not for unnecessary cosmetic surgery. Can i file 1040x online See Cosmetic Surgery under What Expenses Are Not Includible, later. Can i file 1040x online Optometrist See Eyeglasses , earlier. Can i file 1040x online Organ Donors See Transplants , later. Can i file 1040x online Osteopath You can include in medical expenses amounts you pay to an osteopath for medical care. Can i file 1040x online Oxygen You can include in medical expenses amounts you pay for oxygen and oxygen equipment to relieve breathing problems caused by a medical condition. Can i file 1040x online Physical Examination You can include in medical expenses the amount you pay for an annual physical examination and diagnostic tests by a physician. Can i file 1040x online You do not have to be ill at the time of the examination. Can i file 1040x online 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. Can i file 1040x online Prosthesis See Artificial Limb and Breast Reconstruction Surgery , earlier. Can i file 1040x online Psychiatric Care You can include in medical expenses amounts you pay for psychiatric care. Can i file 1040x online This includes the cost of supporting a mentally ill dependent at a specially equipped medical center where the dependent receives medical care. Can i file 1040x online See Psychoanalysis, next, and Transportation , later. Can i file 1040x online Psychoanalysis You can include in medical expenses payments for psychoanalysis. Can i file 1040x online However, you cannot include payments for psychoanalysis that is part of required training to be a psychoanalyst. Can i file 1040x online Psychologist You can include in medical expenses amounts you pay to a psychologist for medical care. Can i file 1040x online 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. Can i file 1040x online 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. Can i file 1040x online A doctor must recommend that the child attend the school. Can i file 1040x online 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. Can i file 1040x online 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. Can i file 1040x online 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). Can i file 1040x online Also see Vasectomy , later. Can i file 1040x online Stop-Smoking Programs You can include in medical expenses amounts you pay for a program to stop smoking. Can i file 1040x online 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. Can i file 1040x online Surgery See Operations , earlier. Can i file 1040x online 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. Can i file 1040x online This includes teletypewriter (TTY) and telecommunications device for the deaf (TDD) equipment. Can i file 1040x online You can also include the cost of repairing the equipment. Can i file 1040x online 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. Can i file 1040x online This may be the cost of an adapter that attaches to a regular set. Can i file 1040x online 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. Can i file 1040x online Therapy You can include in medical expenses amounts you pay for therapy received as medical treatment. Can i file 1040x online 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. Can i file 1040x online This includes transportation. Can i file 1040x online You can include any expenses you pay for the medical care of a donor in connection with the donating of an organ. Can i file 1040x online This includes transportation. Can i file 1040x online Transportation You can include in medical expenses amounts paid for transportation primarily for, and essential to, medical care. Can i file 1040x 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 1040x online Car expenses. Can i file 1040x online   You can include out-of-pocket expenses, such as the cost of gas and oil, when you use a car for medical reasons. Can i file 1040x online You cannot include depreciation, insurance, general repair, or maintenance expenses. Can i file 1040x online   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. Can i file 1040x online    You can also include parking fees and tolls. Can i file 1040x online You can add these fees and tolls to your medical expenses whether you use actual expenses or the standard mileage rate. Can i file 1040x online Example. Can i file 1040x online In 2013, Bill Jones drove 2,800 miles for medical reasons. Can i file 1040x online He spent $500 for gas, $30 for oil, and $100 for tolls and parking. Can i file 1040x 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 1040x online He figures the actual expenses first. Can i file 1040x 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 1040x online He then figures the standard mileage amount. Can i file 1040x online He multiplies 2,800 miles by 24 cents a mile for a total of $672. Can i file 1040x online He then adds the $100 tolls and parking for a total of $772. Can i file 1040x 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 1040x online Transportation expenses you cannot include. Can i file 1040x online    You cannot include in medical expenses the cost of transportation in the following situations. Can i file 1040x online Going to and from work, even if your condition requires an unusual means of transportation. Can i file 1040x online Travel for purely personal reasons to another city for an operation or other medical care. Can i file 1040x online Travel that is merely for the general improvement of one's health. Can i file 1040x online The costs of operating a specially equipped car for other than medical reasons. Can i file 1040x online 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. Can i file 1040x online You may be able to include up to $50 for each night for each person. Can i file 1040x online You can include lodging for a person traveling with the person receiving the medical care. Can i file 1040x 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 1040x online Meals are not included. Can i file 1040x online See Lodging , earlier. Can i file 1040x online 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. Can i file 1040x online However, see Medical Conferences , earlier. Can i file 1040x online Tuition Under special circumstances, you can include charges for tuition in medical expenses. Can i file 1040x online See Special Education , earlier. Can i file 1040x online 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. Can i file 1040x online Vasectomy You can include in medical expenses the amount you pay for a vasectomy. Can i file 1040x online Vision Correction Surgery See Eye Surgery , earlier. Can i file 1040x online 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). Can i file 1040x online This includes fees you pay for membership in a weight reduction group as well as fees for attendance at periodic meetings. Can i file 1040x online 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. Can i file 1040x online 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. Can i file 1040x online 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. Can i file 1040x online 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. Can i file 1040x online See also Weight-Loss Program under What Expenses Are Not Includible, later. Can i file 1040x online 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. Can i file 1040x online The cost of operating and maintaining the wheelchair is also a medical expense. Can i file 1040x online 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. Can i file 1040x online X-ray You can include in medical expenses amounts you pay for X-rays for medical reasons. Can i file 1040x online What Expenses Are Not Includible? Following is a list of some items that you cannot include in figuring your medical expense deduction. Can i file 1040x online The items are listed in alphabetical order. Can i file 1040x online 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. Can i file 1040x online Also, any expense allowed as a childcare credit cannot be treated as an expense paid for medical care. Can i file 1040x online Controlled Substances You cannot include in medical expenses amounts you pay for controlled substances (such as marijuana, laetrile, etc. Can i file 1040x online ), even if such substances are legalized by state law. Can i file 1040x online Such substances are not legal under federal law and cannot be included in medical expenses. Can i file 1040x online Cosmetic Surgery Generally, you cannot include in medical expenses the amount you pay for unnecessary cosmetic surgery. Can i file 1040x online 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. Can i file 1040x online You generally cannot include in medical expenses the amount you pay for procedures such as face lifts, hair transplants, hair removal (electrolysis), and liposuction. Can i file 1040x online 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. Can i file 1040x online Example. Can i file 1040x online An individual undergoes surgery that removes a breast as part of treatment for cancer. Can i file 1040x online She pays a surgeon to reconstruct the breast. Can i file 1040x online The surgery to reconstruct the breast corrects a deformity directly related to the disease. Can i file 1040x online The cost of the surgery is includible in her medical expenses. Can i file 1040x online Dancing Lessons You cannot include in medical expenses the cost of dancing lessons, swimming lessons, etc. Can i file 1040x online , even if they are recommended by a doctor, if they are only for the improvement of general health. Can i file 1040x online 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. Can i file 1040x online Electrolysis or Hair Removal See Cosmetic Surgery , earlier. Can i file 1040x online 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. Can i file 1040x online Funeral Expenses You cannot include in medical expenses amounts you pay for funerals. Can i file 1040x online 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. Can i file 1040x online 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. Can i file 1040x online Hair Transplant See Cosmetic Surgery , earlier. Can i file 1040x online 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. Can i file 1040x online You cannot include in medical expenses the cost of membership in any club organized for business, pleasure, recreation, or other social purpose. Can i file 1040x online 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. Can i file 1040x online For more information, see Health Coverage Tax Credit , later. Can i file 1040x online Health Savings Accounts You cannot include in medical expenses any payment or distribution for medical expenses out of a health savings account. Can i file 1040x online Contributions to health savings accounts are deducted separately. Can i file 1040x online See Publication 969. Can i file 1040x online Household Help You cannot include in medical expenses the cost of household help, even if such help is recommended by a doctor. Can i file 1040x online This is a personal expense that is not deductible. Can i file 1040x online However, you may be able to include certain expenses paid to a person providing nursing-type services. Can i file 1040x online For more information, see Nursing Services , earlier under What Medical Expenses Are Includible. Can i file 1040x online Also, certain maintenance or personal care services provided for qualified long-term care can be included in medical expenses. Can i file 1040x online For more information, see Long-Term Care , earlier under What Medical Expenses Are Includible. Can i file 1040x online 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. Can i file 1040x online Insurance Premiums See Insurance Premiums under What Medical Expenses Are Includible, earlier. Can i file 1040x online Maternity Clothes You cannot include in medical expenses amounts you pay for maternity clothes. Can i file 1040x online Medical Savings Account (MSA) You cannot include in medical expenses amounts you contribute to an Archer MSA. Can i file 1040x online You cannot include expenses you pay for with a tax-free distribution from your Archer MSA. Can i file 1040x online You also cannot use other funds equal to the amount of the distribution and include the expenses. Can i file 1040x online For more information on Archer MSAs, see Publication 969. Can i file 1040x online 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. Can i file 1040x online You can only include the cost of a drug that was imported legally. Can i file 1040x online For example, you can include the cost of a prescribed drug the Food and Drug Administration announces can be legally imported by individuals. Can i file 1040x online 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. Can i file 1040x online Nonprescription Drugs and Medicines Except for insulin, you cannot include in medical expenses amounts you pay for a drug that is not prescribed. Can i file 1040x online Example. Can i file 1040x online Your doctor recommends that you take aspirin. Can i file 1040x online Because aspirin is a drug that does not require a physician's prescription, you cannot include its cost in your medical expenses. Can i file 1040x online Nutritional Supplements You cannot include in medical expenses the cost of nutritional supplements, vitamins, herbal supplements, “natural medicines,” etc. Can i file 1040x online unless they are recommended by a medical practitioner as treatment for a specific medical condition diagnosed by a physician. Can i file 1040x online Otherwise, these items are taken to maintain your ordinary good health, and are not for medical care. Can i file 1040x online 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. Can i file 1040x online For example, the cost of a toothbrush and toothpaste is a nondeductible personal expense. Can i file 1040x online 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. Can i file 1040x online 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. Can i file 1040x online (See Braille Books and Magazines under What Medical Expenses Are Includible, earlier. Can i file 1040x online ) Swimming Lessons See Dancing Lessons , earlier. Can i file 1040x online Teeth Whitening You cannot include in medical expenses amounts paid to whiten teeth. Can i file 1040x online See Cosmetic Surgery , earlier. Can i file 1040x online 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. Can i file 1040x online 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. Can i file 1040x online 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). Can i file 1040x online 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. Can i file 1040x online Also, you cannot include membership dues in a gym, health club, or spa. Can i file 1040x online 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. Can i file 1040x online See Weight-Loss Program under What Medical Expenses Are Includible, earlier. Can i file 1040x online 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. Can i file 1040x 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 1040x online This includes payments from Medicare. Can i file 1040x online 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. Can i file 1040x online Example. Can i file 1040x online You have insurance policies that cover your hospital and doctors' bills but not your nursing bills. Can i file 1040x online The insurance you receive for the hospital and doctors' bills is more than their charges. Can i file 1040x 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 1040x online Health reimbursement arrange
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Letter 757C Frequently Asked Questions (FAQs)

What is the letter telling me?

You failed to meet the terms of your established Installment Agreement by making the specified payment amount on the established due date.

What do I have to do?

You may call the toll free number in this letter. The person who answers the phone will assist you.

How much time do I have?

You should contact us or pay your balance due as soon as possible.

What happens if I don't take any action?

Since you failed to meet the terms of the agreement we could proceed to enforce collection action by filing a levy on your bank account or wages or file a lien on your personal property.

Who should I contact?

You should call the phone number provided in the letter as soon as possible.

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

Call us immediately at the number provided in the letter.

Page Last Reviewed or Updated: 30-Jan-2014

The Can I File 1040x Online

Can i file 1040x online 3. Can i file 1040x online   SIMPLE Plans Table of Contents Topics - This chapter discusses: Useful Items - You may want to see: SIMPLE IRA PlanWho Can Set Up a SIMPLE IRA Plan? Who Can Participate in a SIMPLE IRA Plan? How To Set Up a SIMPLE IRA Plan Notification Requirement Contribution Limits When To Deduct Contributions Where To Deduct Contributions Tax Treatment of Contributions Distributions (Withdrawals) More Information on SIMPLE IRA Plans SIMPLE 401(k) Plan Topics - This chapter discusses: SIMPLE IRA plan SIMPLE 401(k) plan Useful Items - You may want to see: Publications 590 Individual Retirement Arrangements (IRAs) 3998 Choosing A Retirement Solution for Your Small Business 4284 SIMPLE IRA Plan Checklist 4334 SIMPLE IRA Plans for Small Businesses Forms (and Instructions) W-2 Wage and Tax Statement 5304-SIMPLE Savings Incentive Match Plan for Employees of Small Employers (SIMPLE)–Not for Use With a Designated Financial Institution 5305-SIMPLE Savings Incentive Match Plan for Employees of Small Employers (SIMPLE)–for Use With a Designated Financial Institution 8880 Credit for Qualified Retirement Savings Contributions 8881 Credit for Small Employer Pension Plan Startup Costs A savings incentive match plan for employees (SIMPLE plan) is a written arrangement that provides you and your employees with a simplified way to make contributions to provide retirement income. Can i file 1040x online Under a SIMPLE plan, employees can choose to make salary reduction contributions to the plan rather than receiving these amounts as part of their regular pay. Can i file 1040x online In addition, you will contribute matching or nonelective contributions. Can i file 1040x online SIMPLE plans can only be maintained on a calendar-year basis. Can i file 1040x online A SIMPLE plan can be set up in either of the following ways. Can i file 1040x online Using SIMPLE IRAs (SIMPLE IRA plan). Can i file 1040x online As part of a 401(k) plan (SIMPLE 401(k) plan). Can i file 1040x online Many financial institutions will help you set up a SIMPLE plan. Can i file 1040x online SIMPLE IRA Plan A SIMPLE IRA plan is a retirement plan that uses SIMPLE IRAs for each eligible employee. Can i file 1040x online Under a SIMPLE IRA plan, a SIMPLE IRA must be set up for each eligible employee. Can i file 1040x online For the definition of an eligible employee, see Who Can Participate in a SIMPLE IRA Plan , later. Can i file 1040x online Who Can Set Up a SIMPLE IRA Plan? You can set up a SIMPLE IRA plan if you meet both the following requirements. Can i file 1040x online You meet the employee limit. Can i file 1040x online You do not maintain another qualified plan unless the other plan is for collective bargaining employees. Can i file 1040x online Employee limit. Can i file 1040x online   You can set up a SIMPLE IRA plan only if you had 100 or fewer employees who received $5,000 or more in compensation from you for the preceding year. Can i file 1040x online Under this rule, you must take into account all employees employed at any time during the calendar year regardless of whether they are eligible to participate. Can i file 1040x online Employees include self-employed individuals who received earned income and leased employees (defined in chapter 1). Can i file 1040x online   Once you set up a SIMPLE IRA plan, you must continue to meet the 100-employee limit each year you maintain the plan. Can i file 1040x online Grace period for employers who cease to meet the 100-employee limit. Can i file 1040x online   If you maintain the SIMPLE IRA plan for at least 1 year and you cease to meet the 100-employee limit in a later year, you will be treated as meeting it for the 2 calendar years immediately following the calendar year for which you last met it. Can i file 1040x online   A different rule applies if you do not meet the 100-employee limit because of an acquisition, disposition, or similar transaction. Can i file 1040x online Under this rule, the SIMPLE IRA plan will be treated as meeting the 100-employee limit for the year of the transaction and the 2 following years if both the following conditions are satisfied. Can i file 1040x online Coverage under the plan has not significantly changed during the grace period. Can i file 1040x online The SIMPLE IRA plan would have continued to qualify after the transaction if you had remained a separate employer. Can i file 1040x online    The grace period for acquisitions, dispositions, and similar transactions also applies if, because of these types of transactions, you do not meet the rules explained under Other qualified plan or Who Can Participate in a SIMPLE IRA Plan, below. Can i file 1040x online Other qualified plan. Can i file 1040x online   The SIMPLE IRA plan generally must be the only retirement plan to which you make contributions, or to which benefits accrue, for service in any year beginning with the year the SIMPLE IRA plan becomes effective. Can i file 1040x online Exception. Can i file 1040x online   If you maintain a qualified plan for collective bargaining employees, you are permitted to maintain a SIMPLE IRA plan for other employees. Can i file 1040x online Who Can Participate in a SIMPLE IRA Plan? Eligible employee. Can i file 1040x online   Any employee who received at least $5,000 in compensation during any 2 years preceding the current calendar year and is reasonably expected to receive at least $5,000 during the current calendar year is eligible to participate. Can i file 1040x online The term “employee” includes a self-employed individual who received earned income. Can i file 1040x online   You can use less restrictive eligibility requirements (but not more restrictive ones) by eliminating or reducing the prior year compensation requirements, the current year compensation requirements, or both. Can i file 1040x online For example, you can allow participation for employees who received at least $3,000 in compensation during any preceding calendar year. Can i file 1040x online However, you cannot impose any other conditions for participating in a SIMPLE IRA plan. Can i file 1040x online Excludable employees. Can i file 1040x online   The following employees do not need to be covered under a SIMPLE IRA plan. Can i file 1040x online Employees who are covered by a union agreement and whose retirement benefits were bargained for in good faith by the employees' union and you. Can i file 1040x online Nonresident alien employees who have received no U. Can i file 1040x online S. Can i file 1040x online source wages, salaries, or other personal services compensation from you. Can i file 1040x online Compensation. Can i file 1040x online   Compensation for employees is the total wages, tips, and other compensation from the employer subject to federal income tax withholding and the amounts paid for domestic service in a private home, local college club, or local chapter of a college fraternity or sorority. Can i file 1040x online Compensation also includes the employee's salary reduction contributions made under this plan and, if applicable, elective deferrals under a section 401(k) plan, a SARSEP, or a section 403(b) annuity contract and compensation deferred under a section 457 plan required to be reported by the employer on Form W-2. Can i file 1040x online If you are self-employed, compensation is your net earnings from self-employment (line 4 of Short Schedule SE or line 6 of Long Schedule SE (Form 1040)) before subtracting any contributions made to the SIMPLE IRA plan for yourself. Can i file 1040x online How To Set Up a SIMPLE IRA Plan You can use Form 5304-SIMPLE or Form 5305-SIMPLE to set up a SIMPLE IRA plan. Can i file 1040x online Each form is a model savings incentive match plan for employees (SIMPLE) plan document. Can i file 1040x online Which form you use depends on whether you select a financial institution or your employees select the institution that will receive the contributions. Can i file 1040x online Use Form 5304-SIMPLE if you allow each plan participant to select the financial institution for receiving his or her SIMPLE IRA plan contributions. Can i file 1040x online Use Form 5305-SIMPLE if you require that all contributions under the SIMPLE IRA plan be deposited initially at a designated financial institution. Can i file 1040x online The SIMPLE IRA plan is adopted when you have completed all appropriate boxes and blanks on the form and you (and the designated financial institution, if any) have signed it. Can i file 1040x online Keep the original form. Can i file 1040x online Do not file it with the IRS. Can i file 1040x online Other uses of the forms. Can i file 1040x online   If you set up a SIMPLE IRA plan using Form 5304-SIMPLE or Form 5305-SIMPLE, you can use the form to satisfy other requirements, including the following. Can i file 1040x online Meeting employer notification requirements for the SIMPLE IRA plan. Can i file 1040x online Form 5304-SIMPLE and Form 5305-SIMPLE contain a Model Notification to Eligible Employees that provides the necessary information to the employee. Can i file 1040x online Maintaining the SIMPLE IRA plan records and proving you set up a SIMPLE IRA plan for employees. Can i file 1040x online Deadline for setting up a SIMPLE IRA plan. Can i file 1040x online   You can set up a SIMPLE IRA plan effective on any date from January 1 through October 1 of a year, provided you did not previously maintain a SIMPLE IRA plan. Can i file 1040x online This requirement does not apply if you are a new employer that comes into existence after October 1 of the year the SIMPLE IRA plan is set up and you set up a SIMPLE IRA plan as soon as administratively feasible after your business comes into existence. Can i file 1040x online If you previously maintained a SIMPLE IRA plan, you can set up a SIMPLE IRA plan effective only on January 1 of a year. Can i file 1040x online A SIMPLE IRA plan cannot have an effective date that is before the date you actually adopt the plan. Can i file 1040x online Setting up a SIMPLE IRA. Can i file 1040x online   SIMPLE IRAs are the individual retirement accounts or annuities into which the contributions are deposited. Can i file 1040x online A SIMPLE IRA must be set up for each eligible employee. Can i file 1040x online Forms 5305-S, SIMPLE Individual Retirement Trust Account, and 5305-SA, SIMPLE Individual Retirement Custodial Account, are model trust and custodial account documents the participant and the trustee (or custodian) can use for this purpose. Can i file 1040x online   A SIMPLE IRA cannot be a Roth IRA. Can i file 1040x online Contributions to a SIMPLE IRA will not affect the amount an individual can contribute to a Roth or traditional IRA. Can i file 1040x online Deadline for setting up a SIMPLE IRA. Can i file 1040x online   A SIMPLE IRA must be set up for an employee before the first date by which a contribution is required to be deposited into the employee's IRA. Can i file 1040x online See Time limits for contributing funds , later, under Contribution Limits. Can i file 1040x online Credit for startup costs. Can i file 1040x online   You may be able to claim a tax credit for part of the ordinary and necessary costs of starting a SIMPLE IRA plan that first became effective in 2013. Can i file 1040x online For more information, see Credit for startup costs under Reminders, earlier. Can i file 1040x online Notification Requirement If you adopt a SIMPLE IRA plan, you must notify each employee of the following information before the beginning of the election period. Can i file 1040x online The employee's opportunity to make or change a salary reduction choice under a SIMPLE IRA plan. Can i file 1040x online Your decision to make either matching contributions or nonelective contributions (discussed later). Can i file 1040x online A summary description provided by the financial institution. Can i file 1040x online Written notice that his or her balance can be transferred without cost or penalty if they use a designated financial institution. Can i file 1040x online Election period. Can i file 1040x online   The election period is generally the 60-day period immediately preceding January 1 of a calendar year (November 2 to December 31 of the preceding calendar year). Can i file 1040x online However, the dates of this period are modified if you set up a SIMPLE IRA plan in mid-year (for example, on July 1) or if the 60-day period falls before the first day an employee becomes eligible to participate in the SIMPLE IRA plan. Can i file 1040x online   A SIMPLE IRA plan can provide longer periods for permitting employees to enter into salary reduction agreements or to modify prior agreements. Can i file 1040x online For example, a SIMPLE IRA plan can provide a 90-day election period instead of the 60-day period. Can i file 1040x online Similarly, in addition to the 60-day period, a SIMPLE IRA plan can provide quarterly election periods during the 30 days before each calendar quarter, other than the first quarter of each year. Can i file 1040x online Contribution Limits Contributions are made up of salary reduction contributions and employer contributions. Can i file 1040x online You, as the employer, must make either matching contributions or nonelective contributions, defined later. Can i file 1040x online No other contributions can be made to the SIMPLE IRA plan. Can i file 1040x online These contributions, which you can deduct, must be made timely. Can i file 1040x online See Time limits for contributing funds , later. Can i file 1040x online Salary reduction contributions. Can i file 1040x online   The amount the employee chooses to have you contribute to a SIMPLE IRA on his or her behalf cannot be more than $12,000 for 2013 and 2014. Can i file 1040x online These contributions must be expressed as a percentage of the employee's compensation unless you permit the employee to express them as a specific dollar amount. Can i file 1040x online You cannot place restrictions on the contribution amount (such as limiting the contribution percentage), except to comply with the $12,000 limit. Can i file 1040x online   If you or an employee participates in any other qualified plan during the year and you or your employee have salary reduction contributions (elective deferrals) under those plans, the salary reduction contributions under a SIMPLE IRA plan also count toward the overall annual limit ($17,500 for 2013 and 2014) on exclusion of salary reduction contributions and other elective deferrals. Can i file 1040x online Catch-up contributions. Can i file 1040x online   A SIMPLE IRA plan can permit participants who are age 50 or over at the end of the calendar year to also make catch-up contributions. Can i file 1040x online The catch-up contribution limit for 2013 and 2014 for SIMPLE IRA plans is $2,500. Can i file 1040x online Salary reduction contributions are not treated as catch-up contributions for 2013 or 2014 until they exceed $12,000. Can i file 1040x online However, the catch-up contribution a participant can make for a year cannot exceed the lesser of the following amounts. Can i file 1040x online The catch-up contribution limit. Can i file 1040x online The excess of the participant's compensation over the salary reduction contributions that are not catch-up contributions. Can i file 1040x online Employer matching contributions. Can i file 1040x online   You are generally required to match each employee's salary reduction contributions on a dollar-for-dollar basis up to 3% of the employee's compensation. Can i file 1040x online This requirement does not apply if you make nonelective contributions as discussed later. Can i file 1040x online Example. Can i file 1040x online In 2013, your employee, John Rose, earned $25,000 and chose to defer 5% of his salary. Can i file 1040x online Your net earnings from self-employment are $40,000, and you choose to contribute 10% of your earnings to your SIMPLE IRA. Can i file 1040x online You make 3% matching contributions. Can i file 1040x online The total contribution you make for John is $2,000, figured as follows. Can i file 1040x online Salary reduction contributions ($25,000 × . Can i file 1040x online 05) $1,250 Employer matching contribution ($25,000 × . Can i file 1040x online 03) 750 Total contributions $2,000     The total contribution you make for yourself is $5,200, figured as follows. Can i file 1040x online Salary reduction contributions ($40,000 × . Can i file 1040x online 10) $4,000 Employer matching contribution ($40,000 × . Can i file 1040x online 03) 1,200 Total contributions $5,200 Lower percentage. Can i file 1040x online   If you choose a matching contribution less than 3%, the percentage must be at least 1%. Can i file 1040x online You must notify the employees of the lower match within a reasonable period of time before the 60-day election period (discussed earlier) for the calendar year. Can i file 1040x online You cannot choose a percentage less than 3% for more than 2 years during the 5-year period that ends with (and includes) the year for which the choice is effective. Can i file 1040x online Nonelective contributions. Can i file 1040x online   Instead of matching contributions, you can choose to make nonelective contributions of 2% of compensation on behalf of each eligible employee who has at least $5,000 (or some lower amount you select) of compensation from you for the year. Can i file 1040x online If you make this choice, you must make nonelective contributions whether or not the employee chooses to make salary reduction contributions. Can i file 1040x online Only $255,000 of the employee's compensation can be taken into account to figure the contribution limit in 2013 ($260,000 in 2014). Can i file 1040x online   If you choose this 2% contribution formula, you must notify the employees within a reasonable period of time before the 60-day election period (discussed earlier) for the calendar year. Can i file 1040x online Example 1. Can i file 1040x online In 2013, your employee, Jane Wood, earned $36,000 and chose to have you contribute 10% of her salary. Can i file 1040x online Your net earnings from self-employment are $50,000, and you choose to contribute 10% of your earnings to your SIMPLE IRA. Can i file 1040x online You make a 2% nonelective contribution. Can i file 1040x online Both of you are under age 50. Can i file 1040x online The total contribution you make for Jane is $4,320, figured as follows. Can i file 1040x online Salary reduction contributions ($36,000 × . Can i file 1040x online 10) $3,600 2% nonelective contributions ($36,000 × . Can i file 1040x online 02) 720 Total contributions $4,320     The total contribution you make for yourself is $6,000, figured as follows. Can i file 1040x online Salary reduction contributions ($50,000 × . Can i file 1040x online 10) $5,000 2% nonelective contributions ($50,000 × . Can i file 1040x online 02) 1,000 Total contributions $6,000 Example 2. Can i file 1040x online Using the same facts as in Example 1, above, the maximum contribution you make for Jane or for yourself if you each earned $75,000 is $13,500, figured as follows. Can i file 1040x online Salary reduction contributions (maximum amount allowed) $12,000 2% nonelective contributions ($75,000 × . Can i file 1040x online 02) 1,500 Total contributions $13,500 Time limits for contributing funds. Can i file 1040x online   You must make the salary reduction contributions to the SIMPLE IRA within 30 days after the end of the month in which the amounts would otherwise have been payable to the employee in cash. Can i file 1040x online You must make matching contributions or nonelective contributions by the due date (including extensions) for filing your federal income tax return for the year. Can i file 1040x online Certain plans subject to Department of Labor rules may have an earlier due date for salary reduction contributions. Can i file 1040x online When To Deduct Contributions You can deduct SIMPLE IRA contributions in the tax year within which the calendar year for which contributions were made ends. Can i file 1040x online You can deduct contributions for a particular tax year if they are made for that tax year and are made by the due date (including extensions) of your federal income tax return for that year. Can i file 1040x online Example 1. Can i file 1040x online Your tax year is the fiscal year ending June 30. Can i file 1040x online Contributions under a SIMPLE IRA plan for the calendar year 2013 (including contributions made in 2013 before July 1, 2013) are deductible in the tax year ending June 30, 2014. Can i file 1040x online Example 2. Can i file 1040x online You are a sole proprietor whose tax year is the calendar year. Can i file 1040x online Contributions under a SIMPLE IRA plan for the calendar year 2013 (including contributions made in 2014 by April 15, 2014) are deductible in the 2013 tax year. Can i file 1040x online Where To Deduct Contributions Deduct the contributions you make for your common-law employees on your tax return. Can i file 1040x online For example, sole proprietors deduct them on Schedule C (Form 1040) or Schedule F (Form 1040); partnerships deduct them on Form 1065; and corporations deduct them on Form 1120 or Form 1120S. Can i file 1040x online Sole proprietors and partners deduct contributions for themselves on line 28 of Form 1040. Can i file 1040x online (If you are a partner, contributions for yourself are shown on the Schedule K-1 (Form 1065) you receive from the partnership. Can i file 1040x online ) Tax Treatment of Contributions You can deduct your contributions and your employees can exclude these contributions from their gross income. Can i file 1040x online SIMPLE IRA plan contributions are not subject to federal income tax withholding. Can i file 1040x online However, salary reduction contributions are subject to social security, Medicare, and federal unemployment (FUTA) taxes. Can i file 1040x online Matching and nonelective contributions are not subject to these taxes. Can i file 1040x online Reporting on Form W-2. Can i file 1040x online   Do not include SIMPLE IRA plan contributions in the “Wages, tips, other compensation” box of Form W-2. Can i file 1040x online You must, however, include them in the “Social security wages” and “Medicare wages and tips” boxes. Can i file 1040x online You must also include them in box 12. Can i file 1040x online Mark the “Retirement plan” checkbox in box 13. Can i file 1040x online For more information, see the Form W-2 instructions. Can i file 1040x online Distributions (Withdrawals) Distributions from a SIMPLE IRA are subject to IRA rules and generally are includible in income for the year received. Can i file 1040x online Tax-free rollovers can be made from one SIMPLE IRA into another SIMPLE IRA. Can i file 1040x online However, a rollover from a SIMPLE IRA to a non-SIMPLE IRA can be made tax free only after a 2-year participation in the SIMPLE IRA plan. Can i file 1040x online Generally, you or your employee must begin to receive distributions from a SIMPLE IRA by April 1 of the first year after the calendar year in which you or your employee reaches age 70½. Can i file 1040x online Early withdrawals generally are subject to a 10% additional tax. Can i file 1040x online However, the additional tax is increased to 25% if funds are withdrawn within 2 years of beginning participation. Can i file 1040x online More information. Can i file 1040x online   See Publication 590 for information about IRA rules, including those on the tax treatment of distributions, rollovers, required distributions, and income tax withholding. Can i file 1040x online More Information on SIMPLE IRA Plans If you need help to set up or maintain a SIMPLE IRA plan, go to the IRS website and search SIMPLE IRA Plan. Can i file 1040x online SIMPLE 401(k) Plan You can adopt a SIMPLE plan as part of a 401(k) plan if you meet the 100-employee limit as discussed earlier under SIMPLE IRA Plan. Can i file 1040x online A SIMPLE 401(k) plan is a qualified retirement plan and generally must satisfy the rules discussed under Qualification Rules in chapter 4, including the required distribution rules. Can i file 1040x online However, a SIMPLE 401(k) plan is not subject to the nondiscrimination and top-heavy rules discussed in chapter 4 if the plan meets the conditions listed below. Can i file 1040x online Under the plan, an employee can choose to have you make salary reduction contributions for the year to a trust in an amount expressed as a percentage of the employee's compensation, but not more than $12,000 for 2013 and 2014. Can i file 1040x online If permitted under the plan, an employee who is age 50 or over can also make a catch-up contribution of up to $2,500 for 2013 and 2014. Can i file 1040x online See Catch-up contributions , earlier under Contribution Limits. Can i file 1040x online You must make either: Matching contributions up to 3% of compensation for the year, or Nonelective contributions of 2% of compensation on behalf of each eligible employee who has at least $5,000 of compensation from you for the year. Can i file 1040x online No other contributions can be made to the trust. Can i file 1040x online No contributions are made, and no benefits accrue, for services during the year under any other qualified retirement plan sponsored by you on behalf of any employee eligible to participate in the SIMPLE 401(k) plan. Can i file 1040x online The employee's rights to any contributions are nonforfeitable. Can i file 1040x online No more than $255,000 of the employee's compensation can be taken into account in figuring matching contributions and nonelective contributions in 2013 ($260,000 in 2014). Can i file 1040x online Compensation is defined earlier in this chapter. Can i file 1040x online Employee notification. Can i file 1040x online   The notification requirement that applies to SIMPLE IRA plans also applies to SIMPLE 401(k) plans. Can i file 1040x online See Notification Requirement in this chapter. Can i file 1040x online Credit for startup costs. Can i file 1040x online   You may be able to claim a tax credit for part of the ordinary and necessary costs of starting a SIMPLE 401(k) plan that first became effective in 2013. Can i file 1040x online For more information, see Credit for startup costs under Reminders, earlier. Can i file 1040x online Note on Forms. Can i file 1040x online   Please note that Forms 5304-SIMPLE and 5305-SIMPLE can not be used to establish a SIMPLE 401(k) plan. Can i file 1040x online To set up a SIMPLE 401(k) plan, see Adopting a Written Plan in chapter 4. Can i file 1040x online Prev  Up  Next   Home   More Online Publications