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Can I File My State Taxes For Free

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Can I File My State Taxes For Free

Can i file my state taxes for free Publication 517 - Main Content Table of Contents Social Security CoverageCoverage of Members of the Clergy Coverage of Religious Workers (Church Employees) U. Can i file my state taxes for free S. Can i file my state taxes for free Citizens and Resident and Nonresident Aliens Ministerial ServicesMinisters Members of Religious Orders Christian Science Practitioners and Readers Exemption From Self-Employment (SE) TaxMembers of the Clergy Members of Recognized Religious Sects Self-Employment Tax: Figuring Net EarningsRegular Method Nonfarm Optional Method Income Tax: Income and ExpensesIncome Items Expense Items Income Tax Withholding and Estimated Tax Filing Your Return Retirement Savings ArrangementsDeducting contributions to tax-sheltered annuity plans. Can i file my state taxes for free Full-time student. Can i file my state taxes for free Adjusted gross income. Can i file my state taxes for free More information. Can i file my state taxes for free Earned Income Credit Comprehensive ExampleForm W-2 From Church Form W-2 From College Schedule C-EZ (Form 1040) Form 2106-EZ Schedule A (Form 1040) Schedule SE (Form 1040) Form 1040 Attachment 1 Attachment 2 How To Get Tax HelpLow Income Taxpayer Clinics Social Security Coverage This section gives information about which system (SECA or FICA) is used to collect social security and Medicare taxes from members of the clergy (ministers, members of a religious order, and Christian Science practitioners and readers) and religious workers (church employees). Can i file my state taxes for free Coverage of Members of the Clergy The services you perform in the exercise of your ministry, of the duties required by your religious order, or of your profession as a Christian Science practitioner or reader are covered by social security and Medicare under SECA. Can i file my state taxes for free Your earnings for these ministerial services (defined later) are subject to self-employment (SE) tax unless one of the following applies. Can i file my state taxes for free You are a member of a religious order who has taken a vow of poverty. Can i file my state taxes for free You ask the Internal Revenue Service (IRS) for an exemption from SE tax for your services and the IRS approves your request. Can i file my state taxes for free See Exemption From Self-Employment (SE) Tax , later. Can i file my state taxes for free You are subject only to the social security laws of a foreign country under the provisions of a social security agreement between the United States and that country. Can i file my state taxes for free For more information, see Bilateral Social Security (Totalization) Agreements in Publication 54. Can i file my state taxes for free Your earnings that are not from ministerial services may be subject to social security tax under FICA or SECA according to the rules that apply to taxpayers in general. Can i file my state taxes for free See Ministerial Services , later. Can i file my state taxes for free Ministers If you are a minister of a church, your earnings for the services you perform in your capacity as a minister are subject to SE tax, even if you perform these services as an employee of that church. Can i file my state taxes for free However, you can request that the IRS grant you an exemption, as discussed under Exemption From Self-Employment (SE) Tax , later. Can i file my state taxes for free For the specific services covered, see Ministerial Services , later. Can i file my state taxes for free Ministers defined. Can i file my state taxes for free   Ministers are individuals who are duly ordained, commissioned, or licensed by a religious body constituting a church or church denomination. Can i file my state taxes for free Ministers have the authority to conduct religious worship, perform sacerdotal functions, and administer ordinances or sacraments according to the prescribed tenets and practices of that church or denomination. Can i file my state taxes for free   If a church or denomination ordains some ministers and licenses or commissions others, anyone licensed or commissioned must be able to perform substantially all the religious functions of an ordained minister to be treated as a minister for social security purposes. Can i file my state taxes for free Employment status for other tax purposes. Can i file my state taxes for free   Even though all of your income from performing ministerial services is subject to self-employment tax for social security tax purposes, you may be an employee for income tax or retirement plan purposes in performing those same services. Can i file my state taxes for free For income tax or retirement plan purposes, your income earned as an employee will be considered wages. Can i file my state taxes for free Common-law employee. Can i file my state taxes for free   Under common-law rules, you are considered either an employee or a self-employed person. Can i file my state taxes for free Generally, you are an employee if you perform services for someone who has the legal right to control both what you do and how you do it, even if you have considerable discretion and freedom of action. Can i file my state taxes for free For more information about the common-law rules, see Publication 15-A, Employer's Supplemental Tax Guide. Can i file my state taxes for free   If a congregation employs you and pays you a salary, you are generally a common-law employee and income from the exercise of your ministry is wages for income tax purposes. Can i file my state taxes for free However, amounts received directly from members of the congregation, such as fees for performing marriages, baptisms, or other personal services, are not wages; such amounts are self-employment income for both income tax purposes and social security tax purposes. Can i file my state taxes for free Example. Can i file my state taxes for free A church hires and pays you a salary to perform ministerial services subject to its control. Can i file my state taxes for free Under the common-law rules, you are an employee of the church while performing those services. Can i file my state taxes for free Form SS-8. Can i file my state taxes for free   If you are not certain whether you are an employee or a self-employed person, you can get a determination from the IRS by filing Form SS-8. Can i file my state taxes for free Members of Religious Orders If you are a member of a religious order who has not taken a vow of poverty, your earnings for ministerial services you perform as a member of the order are subject to SE tax. Can i file my state taxes for free See Ministerial Services , later. Can i file my state taxes for free However, you can request that the IRS grant you an exemption as discussed under Exemption From Self-Employment (SE) Tax , later. Can i file my state taxes for free Vow of poverty. Can i file my state taxes for free   If you are a member of a religious order and have taken a vow of poverty, you are already exempt from paying SE tax on your earnings for ministerial services you perform as an agent of your church or its agencies. Can i file my state taxes for free You do not need to request a separate exemption. Can i file my state taxes for free For income tax purposes, the earnings are tax free to you. Can i file my state taxes for free Your earnings are considered the income of the religious order. Can i file my state taxes for free Services covered under FICA at the election of the order. Can i file my state taxes for free   However, even if you have taken a vow of poverty, the services you perform for your church or its agencies may be covered under social security. Can i file my state taxes for free Your services are covered if your order, or an autonomous subdivision of the order, elects social security coverage for its current and future vow-of-poverty members. Can i file my state taxes for free   The order or subdivision elects coverage by filing Form SS-16. Can i file my state taxes for free The election may cover certain vow-of-poverty members for a retroactive period of up to 20 calendar quarters before the quarter in which it files the certificate. Can i file my state taxes for free If the election is made, the order or subdivision pays both the employer's and employee's share of the tax. Can i file my state taxes for free You do not pay any of the FICA tax. Can i file my state taxes for free Services performed outside the order. Can i file my state taxes for free   Even if you are a member of a religious order who has taken a vow of poverty and the order requires you to turn over amounts you earn, your earnings are subject to federal income tax and either SE tax or FICA tax (including estimated tax payments and/or withholding) if you: Are self-employed or an employee of an organization outside your religious community, and Perform work not required by, or done on behalf of, the order. Can i file my state taxes for free   In these cases, your income from self-employment or as an employee of that outside organization is taxable to you directly. Can i file my state taxes for free You may, however, be able to take a charitable deduction for the amount you turn over to the order. Can i file my state taxes for free See Publication 526, Charitable Contributions. Can i file my state taxes for free Rulings. Can i file my state taxes for free   Organizations and individuals may request rulings from the IRS on whether they are religious orders, or members of a religious order, respectively, for FICA tax, SE tax, and federal income tax withholding purposes. Can i file my state taxes for free To request a ruling, follow the procedures in Revenue Procedure 2014-1, 2014-1 I. Can i file my state taxes for free R. Can i file my state taxes for free B. Can i file my state taxes for free 1, available at www. Can i file my state taxes for free irs. Can i file my state taxes for free gov/irb/2014-1_IRB/ar05. Can i file my state taxes for free html. Can i file my state taxes for free Christian Science Practitioners and Readers Generally, your earnings from services you perform in your profession as a Christian Science practitioner or reader are subject to SE tax. Can i file my state taxes for free However, you can request an exemption as discussed under Exemption From Self-Employment (SE) Tax , later. Can i file my state taxes for free Practitioners. Can i file my state taxes for free   Christian Science practitioners are members in good standing of the Mother Church, The First Church of Christ, Scientist, in Boston, Massachusetts, who practice healing according to the teachings of Christian Science. Can i file my state taxes for free State law specifically exempts Christian Science practitioners from licensing requirements. Can i file my state taxes for free   Some Christian Science practitioners also are Christian Science teachers or lecturers. Can i file my state taxes for free Income from teaching or lecturing is considered the same as income from their work as practitioners. Can i file my state taxes for free Readers. Can i file my state taxes for free   For tax purposes, Christian Science readers are considered the same as ordained, commissioned, or licensed ministers. Can i file my state taxes for free Coverage of Religious Workers (Church Employees) If you are a religious worker (a church employee) and are not in one of the classes already discussed, your wages are generally subject to social security and Medicare tax under FICA, not SECA. Can i file my state taxes for free Some exceptions are discussed next. Can i file my state taxes for free Election by Church To Exclude Its Employees From FICA Coverage Churches and qualified church-controlled organizations (church organizations) that are opposed for religious reasons to the payment of social security and Medicare taxes can elect to exclude their employees from FICA coverage. Can i file my state taxes for free If your employer makes this election, it does not pay the employer's portion of the FICA taxes or withhold from your pay your portion of the FICA taxes. Can i file my state taxes for free Instead, your wages are subject to SECA and you must pay SE tax on your wages if they exceed $108. Can i file my state taxes for free 28 during the tax year. Can i file my state taxes for free However, you can request an exemption from SE tax if you are a member of a recognized religious sect, as discussed below. Can i file my state taxes for free Churches and church organizations make this election by filing two copies of Form 8274. Can i file my state taxes for free For more information about making this election, see Form 8274. Can i file my state taxes for free Election by Certain Church Employees Who Are Opposed to Social Security and Medicare You may be able to choose to be exempt from social security and Medicare taxes, including the SE tax, if you are a member of a recognized religious sect or division and work for a church (or church-controlled nonprofit division) that does not pay the employer's part of the social security tax on wages. Can i file my state taxes for free This exemption does not apply to your service, if any, as a minister of a church or as a member of a religious order. Can i file my state taxes for free Make this choice by filing Form 4029. Can i file my state taxes for free See Requesting Exemption—Form 4029 , later, under Members of Recognized Religious Sects. Can i file my state taxes for free U. Can i file my state taxes for free S. Can i file my state taxes for free Citizens and Resident and Nonresident Aliens To be covered under the SE tax provisions (SECA), individuals generally must be citizens or resident aliens of the United States. Can i file my state taxes for free Nonresident aliens are not covered under SECA unless a social security agreement in effect between the United States and the foreign country determines that you are covered under the U. Can i file my state taxes for free S. Can i file my state taxes for free social security system. Can i file my state taxes for free To determine your alien status, see Publication 519, U. Can i file my state taxes for free S. Can i file my state taxes for free Tax Guide for Aliens. Can i file my state taxes for free Residents of Puerto Rico, the U. Can i file my state taxes for free S. Can i file my state taxes for free Virgin Islands, Guam, the CNMI, and American Samoa. Can i file my state taxes for free   If you are a resident of one of these U. Can i file my state taxes for free S. Can i file my state taxes for free possessions but not a U. Can i file my state taxes for free S. Can i file my state taxes for free citizen, for SE tax purposes you are treated the same as a citizen or resident alien of the United States. Can i file my state taxes for free For information on figuring the tax, see Self-Employment Tax: Figuring Net Earnings , later. Can i file my state taxes for free Ministerial Services Ministerial services, in general, are the services you perform in the exercise of your ministry, in the exercise of your duties as required by your religious order, or in the exercise of your profession as a Christian Science practitioner or reader. Can i file my state taxes for free Income you receive for performing ministerial services is subject to SE tax unless you have an exemption as explained later. Can i file my state taxes for free Even if you have an exemption, only the income you receive for performing ministerial services is exempt. Can i file my state taxes for free The exemption does not apply to any other income. Can i file my state taxes for free The following discussions provide more detailed information on ministerial services of ministers, members of a religious order, and Christian Science practitioners and readers. Can i file my state taxes for free Ministers Most services you perform as a minister, priest, rabbi, etc. Can i file my state taxes for free , are ministerial services. Can i file my state taxes for free These services include: Performing sacerdotal functions, Conducting religious worship, and Controlling, conducting, and maintaining religious organizations (including the religious boards, societies, and other integral agencies of such organizations) that are under the authority of a religious body that is a church or denomination. Can i file my state taxes for free You are considered to control, conduct, and maintain a religious organization if you direct, manage, or promote the organization's activities. Can i file my state taxes for free A religious organization is under the authority of a religious body that is a church or denomination if it is organized for and dedicated to carrying out the principles of a faith according to the requirements governing the creation of institutions of the faith. Can i file my state taxes for free Services for nonreligious organizations. Can i file my state taxes for free   Your services for a nonreligious organization are ministerial services if the services are assigned or designated by your church. Can i file my state taxes for free Assigned or designated services qualify even if they do not involve performing sacerdotal functions or conducting religious worship. Can i file my state taxes for free   If your services are not assigned or designated by your church, they are ministerial services only if they involve performing sacerdotal functions or conducting religious worship. Can i file my state taxes for free Services that are not part of your ministry. Can i file my state taxes for free   Income from services you perform as an employee that are not ministerial services is subject to social security and Medicare tax withholding under FICA (not SECA) under the rules that apply to employees in general. Can i file my state taxes for free The following are not ministerial services. Can i file my state taxes for free Services you perform for nonreligious organizations other than the services stated above. Can i file my state taxes for free Services you perform as a duly ordained, commissioned, or licensed minister of a church as an employee of the United States, the District of Columbia, a foreign government, or any of their political subdivisions. Can i file my state taxes for free These services are not ministerial services even if you are performing sacerdotal functions or conducting religious worship. Can i file my state taxes for free (For example, if you perform services as a chaplain in the Armed Forces of the United States, those services are not ministerial services. Can i file my state taxes for free ) Services you perform in a government-owned and operated hospital. Can i file my state taxes for free (These services are considered performed by a government employee, not by a minister as part of the ministry. Can i file my state taxes for free ) However, services that you perform at a church-related hospital or health and welfare institution, or a private nonprofit hospital, are considered to be part of the ministry and are considered ministerial services. Can i file my state taxes for free Books or articles. Can i file my state taxes for free   Writing religious books or articles is considered to be in the exercise of your ministry and is considered a ministerial service. Can i file my state taxes for free   This rule also applies to members of religious orders and to Christian Science practitioners and readers. Can i file my state taxes for free Members of Religious Orders Services you perform as a member of a religious order in the exercise of duties required by the order are ministerial services. Can i file my state taxes for free The services are considered ministerial because you perform them as an agent of the order. Can i file my state taxes for free For example, if the order directs you to perform services for another agency of the supervising church or an associated institution, you are considered to perform the services as an agent of the order. Can i file my state taxes for free However, if the order directs you to work outside the order, this employment will not be considered a duty required by the order unless: Your services are the kind that are ordinarily performed by members of the order, and Your services are part of the duties that must be exercised for, or on behalf of, the religious order as its agent. Can i file my state taxes for free Effect of employee status. Can i file my state taxes for free   Ordinarily, if your services are not considered directed or required of you by the order, you and the outside party for whom you work are considered employee and employer. Can i file my state taxes for free In this case, your earnings from the services are taxed under the rules that apply to employees in general, not under the rules for services provided as agent for the order. Can i file my state taxes for free This result is true even if you have taken a vow of poverty. Can i file my state taxes for free Example. Can i file my state taxes for free Pat Brown and Chris Green are members of a religious order and have taken vows of poverty. Can i file my state taxes for free They renounce all claims to their earnings. Can i file my state taxes for free The earnings belong to the order. Can i file my state taxes for free Pat is a licensed attorney. Can i file my state taxes for free The superiors of the order instructed her to get a job with a law firm. Can i file my state taxes for free Pat joined a law firm as an employee and, as she requested, the firm made the salary payments directly to the order. Can i file my state taxes for free Chris is a secretary. Can i file my state taxes for free The superiors of the order instructed him to accept a job with the business office of the church that supervises the order. Can i file my state taxes for free Chris took the job and gave all his earnings to the order. Can i file my state taxes for free Pat's services are not duties required by the order. Can i file my state taxes for free Her earnings are subject to social security and Medicare tax under FICA and to federal income tax. Can i file my state taxes for free Chris' services are duties required by the order. Can i file my state taxes for free He is acting as an agent of the order and not as an employee of a third party. Can i file my state taxes for free He does not include the earnings in gross income, and they are not subject to income tax withholding or to social security and Medicare tax under FICA or SECA. Can i file my state taxes for free Christian Science Practitioners and Readers Services you perform as a Christian Science practitioner or reader in the exercise of your profession are ministerial services. Can i file my state taxes for free Amounts you receive for performing these services are generally subject to SE tax. Can i file my state taxes for free You may request an exemption from SE tax, discussed next, which applies only to those services. Can i file my state taxes for free Exemption From Self-Employment (SE) Tax You can request an exemption from SE tax if you are a member of the clergy (minister, member of a religious order, or Christian Science practitioner or reader) or a member of a recognized religious sect. Can i file my state taxes for free Generally, members of religious orders who have taken a vow of poverty are already exempt from paying SE tax, as discussed earlier under Members of Religious Orders under Social Security Coverage. Can i file my state taxes for free They do not have to request the exemption. Can i file my state taxes for free Who cannot be exempt. Can i file my state taxes for free   You cannot be exempt from SE tax if you made one of the following elections to be covered under social security. Can i file my state taxes for free These elections are irrevocable. Can i file my state taxes for free You elected to be covered under social security by filing Form 2031, Revocation of Exemption From Self-Employment Tax for Use by Ministers, Members of Religious Orders, and Christian Science Practitioners, for your 1986, 1987, 2000, or 2001 tax year. Can i file my state taxes for free You elected before 1968 to be covered under social security for your ministerial services. Can i file my state taxes for free Requesting exemption. Can i file my state taxes for free    Table 2, earlier, briefly summarizes the procedure for requesting exemption from the SE tax. Can i file my state taxes for free More detailed explanations follow. Can i file my state taxes for free If you are a minister, member of a religious order, or Christian Science practitioner, an approved exemption only applies to earnings you receive for ministerial services, discussed earlier. Can i file my state taxes for free It does not apply to any other self-employment income. Can i file my state taxes for free Table 2. Can i file my state taxes for free The Self-Employment Tax Exemption Application and Approval Process   Who Can Apply Members of the Clergy Members of Recognized  Religious Sects How File Form 4361 File Form 4029 When File by the due date (including extensions) of your income tax return for the second tax year in which you had at least $400 of net earnings from self-employment (at least part from ministerial services) File anytime Approval If approved, you will receive an approved copy of Form 4361 If approved, you will receive an approved copy of Form 4029 Effective Date For all tax years after 1967 in which you have at least $400 of net earnings from self-employment For all tax years beginning with the first year you meet the eligibility requirements discussed later Members of the Clergy To claim the exemption from SE tax, you must meet all of the following conditions. Can i file my state taxes for free You file Form 4361, described below under Requesting Exemption—Form 4361 . Can i file my state taxes for free You are conscientiously opposed to public insurance because of your individual religious considerations (not because of your general conscience), or you are opposed because of the principles of your religious denomination. Can i file my state taxes for free You file for other than economic reasons. Can i file my state taxes for free You inform the ordaining, commissioning, or licensing body of your church or order that you are opposed to public insurance if you are a minister or a member of a religious order (other than a vow-of-poverty member). Can i file my state taxes for free This requirement does not apply to Christian Science practitioners or readers. Can i file my state taxes for free You establish that the organization that ordained, commissioned, or licensed you, or your religious order, is a tax-exempt religious organization. Can i file my state taxes for free You establish that the organization is a church or a convention or association of churches. Can i file my state taxes for free You did not make an election discussed earlier under Who cannot be exempt . Can i file my state taxes for free You sign and return the statement the IRS mails to you to certify that you are requesting an exemption based on the grounds listed on the statement. Can i file my state taxes for free Requesting Exemption—Form 4361 To request exemption from SE tax, file Form 4361 in triplicate (original and two copies) with the IRS. Can i file my state taxes for free The IRS will return to you a copy of the Form 4361 that you filed indicating whether it has approved your exemption. Can i file my state taxes for free If it is approved, keep the approved copy of Form 4361 in your permanent records. Can i file my state taxes for free When to file. Can i file my state taxes for free   File Form 4361 by the date your income tax return is due, including extensions, for the second tax year in which both of the following are true. Can i file my state taxes for free You have net earnings from self-employment of at least $400. Can i file my state taxes for free Any part of those net earnings was from ministerial services you performed as a: Minister, Member of a religious order, or Christian Science practitioner or reader. Can i file my state taxes for free The 2 years do not have to be consecutive tax years. Can i file my state taxes for free    The approval process can take some time, so you should file Form 4361 as soon as possible. Can i file my state taxes for free Example 1. Can i file my state taxes for free Rev. Can i file my state taxes for free Lawrence Jaeger, a clergyman ordained in 2013, has net self-employment earnings as a minister of $450 in 2013 and $500 in 2014. Can i file my state taxes for free He must file his application for exemption by the due date, including extensions, for his 2014 income tax return. Can i file my state taxes for free However, if Rev. Can i file my state taxes for free Jaeger does not receive IRS approval for an exemption by April 15, 2015, his SE tax for 2014 is due by that date. Can i file my state taxes for free Example 2. Can i file my state taxes for free Rev. Can i file my state taxes for free Louise Wolfe has only $300 in net self-employment earnings as a minister in 2013, but earned more than $400 in 2012 and expects to earn more than $400 in 2014. Can i file my state taxes for free She must file her application for exemption by the due date, including extensions, for her 2014 income tax return. Can i file my state taxes for free However, if she does not receive IRS approval for an exemption by April 15, 2015, her SE tax for 2014 is due by that date. Can i file my state taxes for free Example 3. Can i file my state taxes for free In 2011, Rev. Can i file my state taxes for free David Moss was ordained a minister and had $700 in net self-employment earnings as a minister. Can i file my state taxes for free In 2012, he received $1,000 as a minister, but his related expenses were over $1,000. Can i file my state taxes for free Therefore, he had no net self-employment earnings as a minister in 2012. Can i file my state taxes for free Also in 2012, he opened a book store and had $8,000 in net self-employment earnings from the store. Can i file my state taxes for free In 2013, he had net self-employment earnings of $1,500 as a minister and $10,000 net self-employment earnings from the store. Can i file my state taxes for free Rev. Can i file my state taxes for free Moss had net earnings from self-employment in 2011 and 2013 that were $400 or more each year, and part of the self-employment earnings in each of those years was for his services as a minister. Can i file my state taxes for free Thus, he must file his application for exemption by the due date, including extensions, for his 2013 income tax return. Can i file my state taxes for free Death of individual. Can i file my state taxes for free   The right to file an application for exemption ends with an individual's death. Can i file my state taxes for free A surviving spouse, executor, or administrator cannot file an exemption application for a deceased clergy member. Can i file my state taxes for free Effective date of exemption. Can i file my state taxes for free   An approved exemption is effective for all tax years after 1967 in which you have $400 or more of net earnings from self-employment and any part of those earnings is for services as a member of the clergy. Can i file my state taxes for free Once the exemption is approved, it is irrevocable. Can i file my state taxes for free Example. Can i file my state taxes for free Rev. Can i file my state taxes for free Trudy Austin, ordained in 2010, had $400 or more in net self-employment earnings as a minister in both 2010 and 2013. Can i file my state taxes for free She files an application for exemption on February 20, 2014. Can i file my state taxes for free If an exemption is granted, it is effective for 2010 and the following years. Can i file my state taxes for free Refunds of SE tax. Can i file my state taxes for free   If, after receiving an approved Form 4361, you find that you overpaid SE tax, you can file a claim for refund on Form 1040X. Can i file my state taxes for free Generally, for a refund, you must file Form 1040X within 3 years from the date you filed the return or within 2 years from the date you paid the tax, whichever is later. Can i file my state taxes for free A return you filed, or tax you paid, before the due date is considered to have been filed or paid on the due date. Can i file my state taxes for free   If you file a claim after the 3-year period but within 2 years from the time you paid the tax, the credit or refund will not be more than the tax you paid within the 2 years immediately before you file the claim. Can i file my state taxes for free Members of Recognized Religious Sects If you are a member of a recognized religious sect, or a division of a recognized religious sect, you can apply for an exemption from payment of social security and Medicare taxes on both your self-employment income and the wages you earn from an employer who also has an exemption. Can i file my state taxes for free Exception. Can i file my state taxes for free   If you received social security benefits or payments, or anyone else received these benefits or payments based on your wages or self-employment income, you cannot apply. Can i file my state taxes for free However, if you pay your benefits back, you may be considered for exemption. Can i file my state taxes for free Contact your local Social Security Administration office to find out the amount you must pay back. Can i file my state taxes for free Eligibility requirements. Can i file my state taxes for free   To claim this exemption from SE tax, all the following requirements must be met. Can i file my state taxes for free You must file Form 4029, discussed later under Requesting Exemption—Form 4029 . Can i file my state taxes for free As a follower of the established teachings of the sect or division, you must be conscientiously opposed to accepting benefits of any private or public insurance that makes payments for death, disability, old age, retirement, or medical care, or provides services for medical care. Can i file my state taxes for free You must waive all rights to receive any social security payment or benefit and agree that no benefits or payments will be made to anyone else based on your wages and self-employment income. Can i file my state taxes for free The Commissioner of Social Security must determine that: Your sect or division has the established teachings as described in (2) above, It is the practice, and has been for a substantial period of time, for members of the sect or division to provide for their dependent members in a manner that is reasonable in view of the members' general level of living, and The sect or division has existed at all times since December 31, 1950. Can i file my state taxes for free Requesting Exemption—Form 4029 To request the exemption, file Form 4029 in triplicate (original and two copies) with the Social Security Administration at the address shown on the form. Can i file my state taxes for free The sect or division must complete part of the form. Can i file my state taxes for free The IRS will return to you a copy of the Form 4029 that you filed indicating whether it has approved your exemption. Can i file my state taxes for free If it is approved, keep the approved copy of Form 4029 in your permanent records. Can i file my state taxes for free When to file. Can i file my state taxes for free   You can file Form 4029 at any time. Can i file my state taxes for free   If you have an approved exemption from SE tax and for some reason that approved exemption ended, you must file a new Form 4029 if you subsequently meet the eligibility requirements, discussed earlier. Can i file my state taxes for free See Effective date of exemption next for information on when the newly approved exemption would become effective. Can i file my state taxes for free    If you have a previously approved exemption from SE tax and you change membership to another recognized religious sect, without any change to your eligibility requirements, then you do not need to file a new Form 4029. Can i file my state taxes for free Effective date of exemption. Can i file my state taxes for free   An approved exemption from SE tax generally is effective for all tax years beginning with the first year you meet the eligibility requirements discussed earlier. Can i file my state taxes for free (For example, if you meet the eligibility requirements in 2011, you file Form 4029 in 2012, and the IRS approves your exemption in 2013, your exemption is effective for tax year 2011 and all later years. Can i file my state taxes for free )   The exemption will end if you fail to meet the eligibility requirements or if the Commissioner of Social Security determines that the sect or division fails to meet them. Can i file my state taxes for free You must notify the IRS within 60 days if you are no longer a member of the religious group, or if you no longer follow the established teachings of this group. Can i file my state taxes for free The exemption will end for the tax year where you or your sect/division first fails to meet the eligibility requirements. Can i file my state taxes for free Refunds of SE tax paid. Can i file my state taxes for free    To get a refund of any SE tax you paid while the exemption was in effect, file Form 1040X. Can i file my state taxes for free For information on filing this form, see Refunds of SE tax under Requesting Exemption—Form 4361, earlier. Can i file my state taxes for free Exemption From FICA Taxes Generally, under FICA, the employer and the employee each pay half of the social security and Medicare tax. Can i file my state taxes for free Both the employee and the employer, if they meet the eligibility requirements discussed earlier, can apply to be exempt from their share of FICA taxes on wages paid by the employer to the employee. Can i file my state taxes for free A partnership in which each partner holds a religious exemption from social security and Medicare is an employer for this purpose. Can i file my state taxes for free If the employer's application is approved, the exemption will apply only to FICA taxes on wages paid to employees who also received an approval of identical applications. Can i file my state taxes for free Information for employers. Can i file my state taxes for free   If you have an approved Form 4029 and you have an employee who has an approved Form 4029, do not report wages you paid to the employee as social security and Medicare wages. Can i file my state taxes for free   If you have an employee who does not have an approved Form 4029, you must withhold the employee's share of social security and Medicare taxes and pay the employer's share. Can i file my state taxes for free Form W-2. Can i file my state taxes for free   When preparing a Form W-2 for an employee with an approved Form 4029, enter “Form 4029” in box 14, “Other. Can i file my state taxes for free ” Do not make any entries in boxes 3, 4, 5, or 6. Can i file my state taxes for free Forms 941, 943, and 944. Can i file my state taxes for free   If both you and your employee have received approved Forms 4029, do not include these exempt wages on the following forms. Can i file my state taxes for free Instead, follow the instructions given below. Can i file my state taxes for free Form 941, Employer's QUARTERLY Federal Tax Return: check the box on line 4 and enter “Form 4029” in the empty space below the check box. Can i file my state taxes for free Form 943, Employer's Annual Federal Tax Return for Agricultural Employees: enter “Form 4029” on the dotted line next to the lines 2 and 4 entry spaces. Can i file my state taxes for free Form 944, Employer's ANNUAL Federal Tax Return: check the box on line 3 and enter “Form 4029” in the empty space below the check box. Can i file my state taxes for free Effective date. Can i file my state taxes for free   An approved exemption from FICA becomes effective on the first day of the first calendar quarter after the quarter in which you file Form 4029. Can i file my state taxes for free The exemption will end on the last day of the calendar quarter before the quarter in which the employer, employee, sect, or division fails to meet the requirements. Can i file my state taxes for free Self-Employment Tax: Figuring Net Earnings There are two methods for figuring your net earnings from self-employment as a member of the clergy or a religious worker. Can i file my state taxes for free Regular method. Can i file my state taxes for free Nonfarm optional method. Can i file my state taxes for free You may find Worksheets 1 through 4 helpful in figuring your net earnings from self-employment. Can i file my state taxes for free Blank worksheets are in the back of this publication, after the Comprehensive Example. Can i file my state taxes for free Regular Method Most people use the regular method. Can i file my state taxes for free Under this method, figure your net earnings from self-employment by totaling your gross income for services you performed as a minister, a member of a religious order who has not taken a vow of poverty, or a Christian Science practitioner or reader. Can i file my state taxes for free Then, subtract your allowable business deductions and multiply the difference by 92. Can i file my state taxes for free 35% (. Can i file my state taxes for free 9235). Can i file my state taxes for free Use Schedule SE (Form 1040) to figure your net earnings and SE tax. Can i file my state taxes for free If you are an employee of a church that elected to exclude you from FICA coverage, figure net earnings by multiplying your church wages shown on Form W-2 by 92. Can i file my state taxes for free 35% (. Can i file my state taxes for free 9235). Can i file my state taxes for free Do not reduce your wages by any business deductions when making this computation. Can i file my state taxes for free Use Schedule SE (Form 1040), Section B, to figure your net earnings and SE tax. Can i file my state taxes for free If you have an approved exemption, or you are automatically exempt, do not include the income or deductions from ministerial services in figuring your net earnings from self-employment. Can i file my state taxes for free Amounts included in gross income. Can i file my state taxes for free   To figure your net earnings from self-employment (on Schedule SE (Form 1040)), include in gross income: Salaries and fees for your ministerial services (discussed earlier), Offerings you receive for marriages, baptisms, funerals, masses, etc. Can i file my state taxes for free , The value of meals and lodging provided to you, your spouse, and your dependents for your employer's convenience, The fair rental value of a parsonage provided to you (including the cost of utilities that are furnished) and the rental allowance (including an amount for payment of utilities) paid to you, and Any amount a church pays toward your income tax or SE tax, other than withholding the amount from your salary. Can i file my state taxes for free This amount is also subject to income tax. Can i file my state taxes for free   For the income tax treatment of items (2) and (4), see Income Tax: Income and Expenses , later. Can i file my state taxes for free Example. Can i file my state taxes for free Pastor Roger Adams receives an annual salary of $39,000 as a full-time minister. Can i file my state taxes for free The $39,000 includes $5,000 that is designated as a rental allowance to pay utilities. Can i file my state taxes for free His church owns a parsonage that has a fair rental value of $12,000 per year. Can i file my state taxes for free The church gives Pastor Adams the use of the parsonage. Can i file my state taxes for free He is not exempt from SE tax. Can i file my state taxes for free He must include $51,000 ($39,000 plus $12,000) when figuring his net earnings for SE tax purposes. Can i file my state taxes for free The results would be the same if, instead of the use of the parsonage and receipt of the rental allowance for utilities, Pastor Adams had received an annual salary of $51,000 of which $17,000 ($5,000 plus $12,000) per year was designated as a rental allowance. Can i file my state taxes for free Overseas duty. Can i file my state taxes for free   Your net earnings from self-employment are determined without any foreign earned income exclusion or the foreign housing exclusion or deduction if you are a U. Can i file my state taxes for free S. Can i file my state taxes for free citizen or resident alien serving abroad and living in a foreign country. Can i file my state taxes for free   For information on excluding foreign earned income or the foreign housing amount, see Publication 54. Can i file my state taxes for free Example. Can i file my state taxes for free Diane Jones was the minister of a U. Can i file my state taxes for free S. Can i file my state taxes for free church in Mexico. Can i file my state taxes for free She earned $35,000 in that position and was able to exclude it all for income tax purposes under the foreign earned income exclusion. Can i file my state taxes for free The United States does not have a social security agreement with Mexico, so Mrs. Can i file my state taxes for free Jones is subject to U. Can i file my state taxes for free S. Can i file my state taxes for free SE tax and must include $35,000 when figuring net earnings from self-employment. Can i file my state taxes for free Specified U. Can i file my state taxes for free S. Can i file my state taxes for free possessions. Can i file my state taxes for free    The exclusion from gross income for amounts derived from American Samoa or Puerto Rico does not apply in computing net earnings from self-employment. Can i file my state taxes for free Also see Residents of Puerto Rico, the U. Can i file my state taxes for free S. Can i file my state taxes for free Virgin Islands, Guam, the CNMI, and American Samoa , earlier, under U. Can i file my state taxes for free S. Can i file my state taxes for free Citizens and Resident and Nonresident Aliens. Can i file my state taxes for free Amounts not included in gross income. Can i file my state taxes for free   Do not include the following amounts in gross income when figuring your net earnings from self-employment. Can i file my state taxes for free Offerings that others made to the church. Can i file my state taxes for free Contributions by your church to a tax-sheltered annuity plan set up for you, including any salary reduction contributions (elective deferrals) that are not included in your gross income. Can i file my state taxes for free Pension payments or retirement allowances you receive for your past ministerial services. Can i file my state taxes for free The rental value of a parsonage or a parsonage allowance provided to you after you retire. Can i file my state taxes for free Allowable deductions. Can i file my state taxes for free   When figuring your net earnings from self-employment, deduct all your expenses related to your ministerial services performed as a self-employed person. Can i file my state taxes for free These are ministerial expenses you incurred while working other than as a common-law employee of the church. Can i file my state taxes for free They include expenses incurred in performing marriages and baptisms, and in delivering speeches. Can i file my state taxes for free Deduct these expenses on Schedule C or C-EZ (Form 1040), and carry the net amount to line 2 of Schedule SE (Form 1040), Section A or B. Can i file my state taxes for free   Wages earned as a common-law employee (explained earlier) of a church are generally subject to self-employment tax unless an exemption is requested, as discussed earlier under Exemption From Self-Employment (SE) Tax . Can i file my state taxes for free Subtract any allowable expenses (including unreimbursed employee business expenses) from those wages, include the net amount on line 2 of Schedule SE (Form 1040), Section A or B, and attach an explanation. Can i file my state taxes for free Do not complete Schedule C or C-EZ (Form 1040). Can i file my state taxes for free However, for income tax purposes, the expenses are allowed only as an itemized deduction on Schedule A (Form 1040) to the extent they exceed 2% of adjusted gross income. Can i file my state taxes for free Employee reimbursement arrangements. Can i file my state taxes for free   If you received an advance, allowance, or reimbursement for your employee expenses, how you report this amount and your employee expenses depends on whether your employer reimbursed you under an accountable plan or a nonaccountable plan. Can i file my state taxes for free Ask your employer if you are not sure if it reimburses you using an accountable or a nonaccountable plan. Can i file my state taxes for free Accountable plans. Can i file my state taxes for free   To be an accountable plan, your employer's reimbursement arrangement must include all three of the following rules. Can i file my state taxes for free Your expenses must have a business connection—that is, you must have paid or incurred deductible expenses while performing services as an employee of your employer. Can i file my state taxes for free You must adequately account to your employer for these expenses within a reasonable period of time. Can i file my state taxes for free You must return any excess reimbursement or allowance within a reasonable period of time. Can i file my state taxes for free   The reimbursement is not reported on your Form W-2. Can i file my state taxes for free Generally, if your expenses equal your reimbursement, you have no deduction. Can i file my state taxes for free If your expenses are more than your reimbursement, you can deduct your excess expenses for SE tax and income tax purposes. Can i file my state taxes for free Nonaccountable plan. Can i file my state taxes for free   A nonaccountable plan is a reimbursement arrangement that does not meet all three of the rules listed under Accountable plans above. Can i file my state taxes for free In addition, even if your employer has an accountable plan, the following payments will be treated as being paid under a nonaccountable plan. Can i file my state taxes for free Excess reimbursements you fail to return to your employer. Can i file my state taxes for free Reimbursement of nondeductible expenses related to your employer's business. Can i file my state taxes for free   Your employer will combine any reimbursement paid to you under a nonaccountable plan with your wages, salary, or other compensation and report the combined total in box 1 of your Form W-2. Can i file my state taxes for free Since reimbursements under a nonaccountable plan are included in your gross income, you can deduct your related expenses (for SE tax and income tax purposes) regardless of whether they are more than, less than, or equal to your reimbursement. Can i file my state taxes for free   For more information on accountable and nonaccountable plans, see Publication 463, Travel, Entertainment, Gift, and Car Expenses. Can i file my state taxes for free Married Couple Missionary Team If both spouses are duly ordained, commissioned, or licensed ministers of a church and have an agreement that each will perform specific services for which they are paid jointly or separately, they must divide the self-employment income according to the agreement. Can i file my state taxes for free If the agreement is with one spouse only and the other spouse is not paid for any specific duties, amounts received for their services are included only in the self-employment income of the spouse having the agreement. Can i file my state taxes for free Earnings Subject to SE Tax For 2013, the maximum net earnings from self-employment subject to social security (old age, survivors, and disability insurance) tax is $113,700 minus any wages and tips you earned that were subject to social security tax. Can i file my state taxes for free The tax rate for the social security part is 12. Can i file my state taxes for free 4%. Can i file my state taxes for free In addition, all of your net earnings are subject to the Medicare (hospital insurance) part of the SE tax. Can i file my state taxes for free This tax rate is 2. Can i file my state taxes for free 9%. Can i file my state taxes for free The combined self-employment tax rate is 15. Can i file my state taxes for free 3%. Can i file my state taxes for free Additional Medicare Tax. Can i file my state taxes for free   Beginning in 2013, a 0. Can i file my state taxes for free 9% Additional Medicare Tax applies to Medicare wages, railroad retirement (RRTA) compensation, and self-employment income that are more than: $125,000 if married filing separately, $250,000 if married filing jointly, or $200,000 for any other filing status. Can i file my state taxes for free Medicare wages and self-employment income are combined to determine if income exceeds the threshold. Can i file my state taxes for free A self-employment loss is not considered for purposes of this tax. Can i file my state taxes for free RRTA compensation is separately compared to the threshold. Can i file my state taxes for free For more information, see Form 8959, Additional Medicare Tax, and its separate instructions. Can i file my state taxes for free Nonfarm Optional Method You may be able to use the nonfarm optional method for figuring your net earnings from self-employment. Can i file my state taxes for free In general, the nonfarm optional method is intended to permit continued coverage for social security and Medicare purposes when your income for the tax year is low. Can i file my state taxes for free You may use the nonfarm optional method if you meet all the following tests. Can i file my state taxes for free You are self-employed on a regular basis. Can i file my state taxes for free You meet this test if your actual net earnings from self-employment were $400 or more in at least 2 of the 3 tax years before the one for which you use this method. Can i file my state taxes for free The net earnings can be from either farm or nonfarm earnings or both. Can i file my state taxes for free You have used this method less than 5 prior years. Can i file my state taxes for free (There is a 5-year lifetime limit. Can i file my state taxes for free ) The years do not have to be consecutive. Can i file my state taxes for free Your net nonfarm profits were: Less than $5,024, and Less than 72. Can i file my state taxes for free 189% of your gross nonfarm income. Can i file my state taxes for free If you meet all three tests, use Table 3 to figure your net earnings from self-employment under the nonfarm optional method. Can i file my state taxes for free Table 3. Can i file my state taxes for free Figuring Nonfarm Net Earnings IF your gross nonfarm income is . Can i file my state taxes for free . Can i file my state taxes for free . Can i file my state taxes for free THEN your net earnings are equal to . Can i file my state taxes for free . Can i file my state taxes for free . Can i file my state taxes for free $6,960 or less Two-thirds of your gross nonfarm income. Can i file my state taxes for free More than $6,960 $4,640. Can i file my state taxes for free Actual net earnings. Can i file my state taxes for free   Multiply your total earnings subject to SE tax by 92. Can i file my state taxes for free 35% (. Can i file my state taxes for free 9235) to get actual net earnings. Can i file my state taxes for free Actual net earnings are equivalent to net earnings under the “Regular Method. Can i file my state taxes for free ” More information. Can i file my state taxes for free   For more information on the nonfarm optional method, see Publication 334, Tax Guide for Small Business, and the Schedule SE (Form 1040) instructions. Can i file my state taxes for free Income Tax: Income and Expenses Some income and expense items are treated the same for both income tax and SE tax purposes and some are treated differently. Can i file my state taxes for free Note. Can i file my state taxes for free For purposes of this section, references to members of the clergy are only to ministers or members of a religious order. Can i file my state taxes for free Income Items The tax treatment of offerings and fees, outside earnings, rental allowances, rental value of a parsonage, earnings of members of religious orders, and foreign earned income is discussed here. Can i file my state taxes for free Offerings and Fees If you are a member of the clergy, you must include in your income offerings and fees you receive for marriages, baptisms, funerals, masses, etc. Can i file my state taxes for free , in addition to your salary. Can i file my state taxes for free If the offering is made to the religious institution, it is not taxable to you. Can i file my state taxes for free Outside Earnings If you are a member of a religious organization and you give your outside earnings to the organization, you still must include the earnings in your income. Can i file my state taxes for free However, you may be entitled to a charitable contribution deduction for the amount paid to the organization. Can i file my state taxes for free For more information, see Publication 526. Can i file my state taxes for free Exclusion of Rental Allowance and Fair Rental Value of a Parsonage Ordained, commissioned, or licensed ministers of the gospel may be able to exclude from income tax the rental allowance or fair rental value of a parsonage that is provided to them as pay for their services. Can i file my state taxes for free Services include: Ministerial services, discussed earlier, Administrative duties and teaching at theological seminaries, and The ordinary duties of a minister performed as an employee of the United States (other than as a chaplain in the Armed Forces), a state, possession, political subdivision, or the District of Columbia. Can i file my state taxes for free This exclusion applies only for income tax purposes. Can i file my state taxes for free It does not apply for SE tax purposes, as discussed earlier under Amounts included in gross income under Self-Employment Tax: Figuring Net Earnings. Can i file my state taxes for free Designation requirement. Can i file my state taxes for free   The church or organization that employs you must officially designate the payment as a housing allowance before it makes the payment. Can i file my state taxes for free It must designate a definite amount. Can i file my state taxes for free It cannot determine the amount of the housing allowance at a later date. Can i file my state taxes for free If the church or organization does not officially designate a definite amount as a housing allowance, you must include your total salary in your income. Can i file my state taxes for free   If you are employed and paid by a local congregation, a resolution by a national church agency of your denomination does not effectively designate a housing allowance for you. Can i file my state taxes for free The local congregation must officially designate the part of your salary that is a housing allowance. Can i file my state taxes for free However, a resolution of a national church agency can designate your housing allowance if you are directly employed by the national agency. Can i file my state taxes for free Rental allowances. Can i file my state taxes for free   If you receive in your salary an amount officially designated as a rental allowance (including an amount to pay utility costs), you can exclude the allowance from your gross income if: You use the amount to provide or rent a home, and The amount is not more than reasonable pay for your services. Can i file my state taxes for free   The amount you exclude cannot be more than the fair rental value of the home, including furnishings, plus the cost of utilities. Can i file my state taxes for free Fair rental value of parsonage. Can i file my state taxes for free   You can exclude from gross income the fair rental value of a house or parsonage, including utilities, furnished to you as part of your earnings. Can i file my state taxes for free However, the exclusion cannot be more than the reasonable pay for your services. Can i file my state taxes for free If you pay for the utilities, you can exclude any allowance designated for utility costs, up to your actual cost. Can i file my state taxes for free Example. Can i file my state taxes for free Rev. Can i file my state taxes for free Joanna Baker is a full-time minister. Can i file my state taxes for free The church allows her to use a parsonage that has an annual fair rental value of $24,000. Can i file my state taxes for free The church pays her an annual salary of $67,000, of which $7,500 is designated for utility costs. Can i file my state taxes for free Her actual utility costs during the year were $7,000. Can i file my state taxes for free For income tax purposes, Rev. Can i file my state taxes for free Baker excludes $31,000 from gross income ($24,000 fair rental value of the parsonage plus $7,000 from the allowance for utility costs). Can i file my state taxes for free She will report $60,000 ($59,500 salary plus $500 of unused utility allowance). Can i file my state taxes for free Her income for SE tax purposes, however, is $91,000 ($67,000 salary + $24,000 fair rental value of the parsonage). Can i file my state taxes for free Home ownership. Can i file my state taxes for free   If you own your home and you receive as part of your salary a housing or rental allowance, you may exclude from gross income the smallest of: The amount actually used to provide a home, The amount officially designated as a rental allowance, or The fair rental value of the home, including furnishings, utilities, garage, etc. Can i file my state taxes for free Excess rental allowance. Can i file my state taxes for free   You must include in gross income the amount of any rental allowance that is more than the smallest of: Your reasonable salary, The fair rental value of the home plus utilities, or The amount actually used to provide a home. Can i file my state taxes for free   Include in the total on Form 1040, line 7. Can i file my state taxes for free On the dotted line next to line 7, enter “Excess allowance” and the amount. Can i file my state taxes for free You may deduct the home mortgage interest and real estate taxes paid on your home even though you pay all or part of those expenses with funds you get through a tax-free rental or parsonage allowance. Can i file my state taxes for free However, you can only deduct these expenses as itemized deductions on Schedule A (Form 1040). Can i file my state taxes for free Retired ministers. Can i file my state taxes for free   If you are a retired minister, you can exclude from your gross income the rental value of a home (plus utilities) furnished to you by your church as a part of your pay for past services, or the part of your pension that was designated as a rental allowance. Can i file my state taxes for free However, a minister's surviving spouse cannot exclude the rental value unless the rental value is for ministerial services he or she performs or performed. Can i file my state taxes for free Teachers or administrators. Can i file my state taxes for free   If you are a minister employed as a teacher or administrator by a church school, college, or university, you are performing ministerial services for purposes of the housing exclusion. Can i file my state taxes for free However, if you perform services as a teacher or administrator on the faculty of a nonchurch college, you cannot exclude from your income a housing allowance or the value of a home that the college provides to you. Can i file my state taxes for free    If you live in faculty lodging as an employee of an educational institution or academic health center, all or part of the value of that lodging may be nontaxable under a different rule. Can i file my state taxes for free In Publication 525, see Faculty lodging in the discussion on meals and lodging under Fringe Benefits. Can i file my state taxes for free   If you serve as a minister of music or minister of education, or serve in an administrative or other function of your religious organization, but are not authorized to perform substantially all of the religious duties of an ordained minister in your church (even if you are commissioned as a minister of the gospel), the housing exclusion does not apply to you. Can i file my state taxes for free Theological students. Can i file my state taxes for free   If you are a theological student serving a required internship as a part-time or assistant pastor, you cannot exclude a parsonage or rental allowance from your income unless you are ordained, commissioned, or licensed as a minister. Can i file my state taxes for free Traveling evangelists. Can i file my state taxes for free   You can exclude a designated rental allowance from out-of-town churches if you meet all of the following requirements. Can i file my state taxes for free You are an ordained minister. Can i file my state taxes for free You perform ministerial services at churches located away from your community. Can i file my state taxes for free You actually use the rental allowance to maintain your permanent home. Can i file my state taxes for free Cantors. Can i file my state taxes for free   If you have a bona fide commission and your congregation employs you on a full-time basis to perform substantially all the religious functions of the Jewish faith, you can exclude a rental allowance from your gross income. Can i file my state taxes for free Earnings—Members of Religious Orders Your earnings may be exempt from both income tax and SE tax if you are a member of a religious order who: Has taken a vow of poverty, Receives earnings for services performed as an agent of the order and in the exercise of duties required by the order, and Renounces the earnings and gives them to the order. Can i file my state taxes for free See Members of Religious Orders , earlier, under Social Security Coverage. Can i file my state taxes for free Foreign Earned Income Certain income may be exempt from income tax if you work in a foreign country or in a specified U. Can i file my state taxes for free S. Can i file my state taxes for free possession. Can i file my state taxes for free Publication 54 discusses the foreign earned income exclusion. Can i file my state taxes for free Publication 570, Tax Guide for Individuals With Income From U. Can i file my state taxes for free S. Can i file my state taxes for free Possessions, covers the rules for taxpayers with income from U. Can i file my state taxes for free S. Can i file my state taxes for free possessions. Can i file my state taxes for free You can get these free publications from the Internal Revenue Service at IRS. Can i file my state taxes for free gov or from most U. Can i file my state taxes for free S. Can i file my state taxes for free Embassies or consulates. Can i file my state taxes for free Expense Items The tax treatment of ministerial trade or business expenses, expenses allocable to tax-free income, and health insurance costs is discussed here. Can i file my state taxes for free Ministerial Trade or Business Expenses as an Employee When you figure your income tax, you must itemize your deductions on Schedule A (Form 1040) to claim allowable deductions for ministerial trade or business expenses incurred while working as an employee. Can i file my state taxes for free You also may have to file Form 2106, Employee Business Expenses (or Form 2106-EZ, Unreimbursed Employee Business Expenses). Can i file my state taxes for free You claim these expenses as miscellaneous itemized deductions that are subject to the 2%-of-adjusted-gross-income (AGI) limit. Can i file my state taxes for free See Publication 529 for more information on this limit. Can i file my state taxes for free However, you cannot deduct any of your employee business expenses that are allocable to tax-free income (discussed next). Can i file my state taxes for free Expenses Allocable to Tax-Free Income If you receive a rental or parsonage allowance that is exempt from income tax (tax free), you must allocate a portion of the expenses of operating your ministry to that tax-free income. Can i file my state taxes for free You cannot deduct the portion of your expenses that you allocate to your tax-free rental or parsonage allowance. Can i file my state taxes for free Exception. Can i file my state taxes for free   This rule does not apply to your deductions for home mortgage interest or real estate taxes on your home. Can i file my state taxes for free Figuring the allocation. Can i file my state taxes for free   Figure the portion of your otherwise deductible expenses that you cannot deduct (because you must allocate that portion to tax-free income) by multiplying the expenses by the following fraction:      Tax-free rental or parsonage allowance     All income (taxable and tax free) earned from your ministry           When figuring the allocation, include the income and expenses related to the ministerial duties you perform both as an employee and as a self-employed person. Can i file my state taxes for free    Reduce your otherwise deductible expenses only in figuring your income tax, not your SE tax. Can i file my state taxes for free Example. Can i file my state taxes for free Rev. Can i file my state taxes for free Charles Ashford received $40,000 in earnings for ministerial services consisting of a $28,000 salary for ministerial services performed as an employee, $2,000 for weddings and baptisms performed as a self-employed person, and a $10,000 tax-free parsonage allowance. Can i file my state taxes for free He incurred $4,000 of unreimbursed expenses connected with his earnings for ministerial services. Can i file my state taxes for free $3,500 of the $4,000 is for employee expenses related to his ministerial salary, and $500 is related to the weddings and baptisms he performed as a self-employed person. Can i file my state taxes for free Rev. Can i file my state taxes for free Ashford figures the nondeductible (tax-free) portion of expenses related to his ministerial salary as follows: ($10,000 ÷ $40,000) x $3,500 = $875   Rev. Can i file my state taxes for free Ashford figures the nondeductible (tax-free) portion of expenses related to his wedding and baptism income as follows: ($10,000 ÷ $40,000) x $500 = $125 Required statement. Can i file my state taxes for free   If you receive a tax-free rental or parsonage allowance and have ministerial expenses, attach a statement to your tax return. Can i file my state taxes for free The statement must contain all of the following information. Can i file my state taxes for free A list of each item of taxable ministerial income by source (such as wages, salary, weddings, baptisms, etc. Can i file my state taxes for free ) plus the amount. Can i file my state taxes for free A list of each item of tax-free ministerial income by source (parsonage allowance) plus the amount. Can i file my state taxes for free A list of each item of otherwise deductible ministerial expenses plus the amount. Can i file my state taxes for free How you figured the nondeductible part of your otherwise deductible expenses. Can i file my state taxes for free A statement that the other deductions claimed on your tax return are not allocable to your tax-free income. Can i file my state taxes for free   See the attachments prepared for the Comprehensive Example , later. Can i file my state taxes for free Following the example, you will find blank worksheets for your own use. Can i file my state taxes for free Health Insurance Costs of Self-Employed Ministers If you are self-employed, you may be able to deduct the amount you paid in 2013 for medical and dental insurance and qualified long-term care insurance for you, your spouse, and your dependents. Can i file my state taxes for free If you qualify, you can take this deduction as an adjustment to income on Form 1040, line 29. Can i file my state taxes for free See the Instructions for Form 1040 to figure your deduction. Can i file my state taxes for free The following special rules apply to the self-employed health insurance deduction. Can i file my state taxes for free You cannot take a medical expense deduction on Schedule A (Form 1040) for any expenses you claim for purposes of the self-employed health insurance deduction. Can i file my state taxes for free You cannot take the deduction for any month you are eligible to participate in a subsidized plan of your (or your spouse's) employer. Can i file my state taxes for free The deduction cannot exceed your net earnings from the business under which the insurance plan is established. Can i file my state taxes for free Your net earnings under this rule do not include the income you earned as a common-law employee (discussed earlier) of a church. Can i file my state taxes for free More information. Can i file my state taxes for free   For more information about the self-employed health insurance deduction, see chapter 6 in Publication 535. Can i file my state taxes for free Deduction for SE Tax You can deduct one-half of your SE tax in figuring adjusted gross income. Can i file my state taxes for free This is an income tax deduction only, on Form 1040, line 27. Can i file my state taxes for free Do not claim this deduction in figuring net earnings from self-employment subject to SE tax. Can i file my state taxes for free Income Tax Withholding and Estimated Tax The federal income tax is a pay-as-you-go tax. Can i file my state taxes for free You must pay the tax as you earn or receive income during the year. Can i file my state taxes for free An employee usually has income tax withheld from his or her wages or salary. Can i file my state taxes for free However, your salary is not subject to federal income tax withholding if both of the following conditions apply. Can i file my state taxes for free You are a duly ordained, commissioned, or licensed minister, a member of a religious order (who has not taken a vow of poverty), or a Christian Science practitioner or reader. Can i file my state taxes for free Your salary is for ministerial services (see Ministerial Services , earlier). Can i file my state taxes for free If your salary is not subject to withholding, or if you do not pay enough tax through withholding, you may need to make estimated tax payments to avoid penalties for not paying enough tax as you earn your income. Can i file my state taxes for free You generally must make estimated tax payments if you expect to owe taxes, including SE tax, of $1,000 or more, when you file your return. Can i file my state taxes for free Determine your estimated tax by using the worksheets in Publication 505, Tax Withholding and Estimated Tax. Can i file my state taxes for free Pay the entire estimated tax for 2014 or the first installment by April 15, 2014. Can i file my state taxes for free See Form 1040-ES for the different payment methods. Can i file my state taxes for free The April 15 date applies whether or not your tax home and your abode are outside the United States and Puerto Rico. Can i file my state taxes for free For more information, see chapter 2 of Publication 505. Can i file my state taxes for free If you perform your services as a common-law employee of the church and your salary is not subject to income tax withholding, you can enter into a voluntary withholding agreement with the church to cover any income and SE tax that may be due. Can i file my state taxes for free Filing Your Return You must file an income tax return for 2013 if your gross income was at least the amount shown in the third column of Table 4 above. Can i file my state taxes for free Table 4. Can i file my state taxes for free 2013 Filing Requirements for Most Taxpayers IF your filing status is . Can i file my state taxes for free . Can i file my state taxes for free . Can i file my state taxes for free AND at the end of 2013 you were* . Can i file my state taxes for free . Can i file my state taxes for free . Can i file my state taxes for free THEN file a return if your gross income** was at least . Can i file my state taxes for free . Can i file my state taxes for free . Can i file my state taxes for free single under age 65 65 or older   $10,000 $11,500   married filing jointly*** under 65 (both spouses) 65 or older (one spouse) 65 or older (both spouses)   $20,000  $21,200  $22,400   married filing separately any age   $3,900   head of household under 65 65 or older   $12,850 $14,350   qualifying widow(er) with dependent child under 65 65 or older   $16,100  $17,300   * If you were born on January 1, 1949, you are considered to be age 65 at the end of 2013. Can i file my state taxes for free ** Gross income means all income you received in the form of money, goods, property, and services that is not exempt from tax, including any income from sources outside the United States or from the sale of your main home (even if you can exclude part or all of it). Can i file my state taxes for free Do not include any social security benefits unless (a) you are married filing a separate return and you lived with your spouse at any time in 2013, or (b) one-half of your social security benefits plus your other gross income and any tax-exempt interest is more than $25,000 ($32,000 if married filing jointly). Can i file my state taxes for free If (a) or (b) applies, see the instructions for Form 1040, lines 20a and 20b, to figure the taxable part of social security benefits you must include in gross income. Can i file my state taxes for free Gross income includes gains, but not losses, reported on Form 8949 or Schedule D (Form 1040). Can i file my state taxes for free Gross income from a business means, for example, the amount on Schedule C (Form 1040), line 7, or Schedule F (Form 1040), line 9. Can i file my state taxes for free But, in figuring gross income, do not reduce your income by any losses, including any loss on Schedule C (Form 1040), line 7, or Schedule F (Form 1040), line 9. Can i file my state taxes for free *** If you did not live with your spouse at the end of 2013 (or on the date your spouse died) and your gross income was at least $3,900, you must file a return regardless of your age. Can i file my state taxes for free Additional requirements. Can i file my state taxes for free   Even if your income was less than the amount shown in Table 4, you must file an income tax return on Form 1040, and attach a completed Schedule SE (Form 1040), if:    You are not exempt from SE tax, and you have net earnings from self-employment (discussed earlier under Self-Employment Tax: Figuring Net Earnings ) of $400 or more in the tax year, You are exempt from SE tax on earnings from ministerial services and you have $400 or more of other net earnings subject to SE tax, or You had wages of $108. Can i file my state taxes for free 28 or more from an electing church or church-controlled organization (see Coverage of Religious Workers (Church Employees) , earlier, under Social Security Coverage). Can i file my state taxes for free Self-employment tax. Can i file my state taxes for free   If you are liable for SE tax, you must file Schedule SE (Form 1040) with your return. Can i file my state taxes for free   If you filed Form 4361 and did not receive approval from the IRS, you must pay SE tax on your ministerial earnings, as explained earlier. Can i file my state taxes for free You should report ministerial earnings and expenses from nonemployee ministerial services on Schedule C or C-EZ (Form 1040). Can i file my state taxes for free You should then carry the net amount over to line 2 of Schedule SE (Form 1040), Section A or B. Can i file my state taxes for free However, if you were a duly ordained minister who was an employee of a church and you must pay SE tax on the wages you earned for those services, do not report those wages on Schedule C or C-EZ (Form 1040). Can i file my state taxes for free Instead, report those wages less any allowable expenses (including any unreimbursed employee business expenses), on line 2 of Schedule SE (Form 1040), Section A or B, and attach an explanation. Can i file my state taxes for free Note. Can i file my state taxes for free For income tax purposes, the unreimbursed employee business expenses that you incurred as an employee of the church and subtracted from your wages on line 2 of Schedule SE (Form 1040) are allowed only as an itemized deduction on Schedule A (Form 1040) if they exceed 2% of your adjusted gross income. Can i file my state taxes for free You cannot deduct these expenses on Schedule C or C-EZ (Form 1040) as a trade or business expense. Can i file my state taxes for free Exemption from SE tax. Can i file my state taxes for free   If you filed Form 4361 and received IRS approval not to be taxed on your ministerial earnings, and you do not have any other income subject to SE tax, do not file Schedule SE (Form 1040). Can i file my state taxes for free Instead, enter “Exempt—Form 4361” on the dotted line next to Form 1040, line 56. Can i file my state taxes for free However, if you had net earnings from another trade or business of $400 or more subject to SE tax, see line A at the top of Schedule SE (Form 1040), Section B. Can i file my state taxes for free    If you filed Form 4029 and received IRS approval not to be taxed on those earnings, and you do not have any other income subject to SE tax, do not file Schedule SE (Form 1040). Can i file my state taxes for free Instead, enter “Exempt—Form 4029” on the dotted line next to Form 1040, line 56. Can i file my state taxes for free More information. Can i file my state taxes for free   For more information on filing your return, including when and where to file it, see the Instructions for Form 1040. Can i file my state taxes for free Retirement Savings Arrangements Retirement savings arrangements are plans that offer you a tax-favored way to save for your retirement. Can i file my state taxes for free You generally can deduct your contributions to the plan. Can i file my state taxes for free Your contributions and the earnings on them are not taxed until they are distributed. Can i file my state taxes for free Retirement plans for the self-employed. Can i file my state taxes for free   To set up one of the following plans you must be self-employed. Can i file my state taxes for free SEP (simplified employee pension) plan. Can i file my state taxes for free SIMPLE (savings incentive match plan for employees) plan. Can i file my state taxes for free Qualified retirement plan (also called a Keogh or H. Can i file my state taxes for free R. Can i file my state taxes for free 10 plan). Can i file my state taxes for free   The common-law rules determine whether you are an employee or a self-employed person for purposes of setting up a retirement plan. Can i file my state taxes for free See Employment status for other tax purposes under Coverage of Members of the Clergy, earlier. Can i file my state taxes for free This result is true even if your compensation for ministerial services (defined earlier) is subject to SE tax. Can i file my state taxes for free   For example, if a congregation pays you a salary for performing ministerial services and you are subject to the congregation's control, you generally are a common-law employee. Can i file my state taxes for free You are not a self-employed person for purposes of setting up a retirement plan. Can i file my state taxes for free This result is true even if your salary is subject to SE tax. Can i file my state taxes for free   On the other hand, amounts received directly from members of the congregation, such as fees for performing marriages, baptisms, or other personal services that you report on Schedule C or C-EZ (Form 1040), are earnings from self-employment for all tax purposes. Can i file my state taxes for free   For more information on establishing a SEP, SIMPLE, or qualified retirement plan, see Publication 560, Retirement Plans for Small Business (SEP, SIMPLE, and Qualified Plans). Can i file my state taxes for free Individual retirement arrangements (IRAs). Can i file my state taxes for free   The traditional IRA and the Roth IRA are two individual retirement arrangements you can use to save money for your retirement. Can i file my state taxes for free Generally, your maximum contribution for 2013 to either of these plans (or to a combination of the two) is the smaller of your taxable compensation or $5,500 ($6,500 if you are age 50 or older). Can i file my state taxes for free   However, your maximum contribution to a Roth IRA will be further reduced or eliminated if your adjusted gross income is above a certain amount. Can i file my state taxes for free You cannot deduct Roth IRA contributions, but if you satisfy certain requirements, all earnings in the Roth IRA are tax free and neither your nondeductible contributions nor any earnings on them are taxable when distributed. Can i file my state taxes for free   If you contribute to a traditional IRA, your contribution may be deductible. Can i file my state taxes for free However, your deduction may be reduced or eliminated if you or your spouse is covered by an employer retirement plan (including, but not limited to, a SEP, SIMPLE, or qualified retirement plan). Can i file my state taxes for free   For more information on IRAs, see Publication 590. Can i file my state taxes for free Tax-sheltered annuity plans. Can i file my state taxes for free   Church employees, members of religious orders, and duly ordained, commissioned, or licensed ministers working as ministers or chaplains can participate in tax-sheltered annuity (403(b)) plans. Can i file my state taxes for free For more
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Contact My Local Office in Nebraska

Face-to-face Tax Help

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

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

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

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

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

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

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

City  Street Address  Days/Hours of Service  Telephone* 
Lincoln  100 Centennial Mall N.
Lincoln, NE 68508 

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

 

Services Provided

(402) 473-4680 
Norfolk  208 N. Fifth St.
Norfolk, NE 68701 

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

 

Services Provided

(402) 371-1503 
North Platte  300 E. Third St.
North Platte, NE 69101 

Monday-Friday - 8:30 a.m. - 4:30 p.m.
(Closed for lunch 12:00 noon - 1:00 p.m.)

 

**This office will be closed 4/28 - 4/30**

 

Services Provided

(308) 532-8810 
Omaha  1616 Capitol Ave.
Omaha, NE 68102 

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

 

Services Provided

(402) 233-7232
Scottsbluff  2001 Broadway 
Scottsbluff, NE 69361 

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

 

Services Provided

(308) 635-3435 

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

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

The Taxpayer Advocate Service: Call (402) 233-7272 in Omaha or 1-877-777-4778 elsewhere, or see  Publication 1546, The Taxpayer Advocate Service of the IRS.

For further information, see  Tax Topic 104

Partnerships

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

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

Internal Revenue Service
1616 Capitol Avenue
Omaha, NE 68102

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

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

Page Last Reviewed or Updated: 28-Mar-2014

The Can I File My State Taxes For Free

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