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

Efile tax return for free 8. Efile tax return for free   Paying Tax Through Withholding or Estimated Tax Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Notification of Alien Status Withholding From CompensationWithholding on Wages Withholding on Pensions Withholding on Tip Income Independent Contractors Withholding From Other IncomeTax Withheld on Partnership Income Withholding on Scholarships and Fellowship Grants Income Entitled to Tax Treaty BenefitsStudents, teachers, and researchers. Efile tax return for free Tax Withheld on Real Property Sales Social Security and Medicare TaxesStudents and Exchange Visitors Agricultural Workers Self-Employment Tax International Social Security Agreements Estimated Tax Form 1040-ES (NR)Fiscal year. Efile tax return for free Introduction This chapter discusses how to pay your U. Efile tax return for free S. Efile tax return for free income tax as you earn or receive income during the year. Efile tax return for free In general, the federal income tax is a pay as you go tax. Efile tax return for free There are two ways to pay as you go. Efile tax return for free Withholding. Efile tax return for free If you are an employee, your employer probably withholds income tax from your pay. Efile tax return for free Tax may also be withheld from certain other income—including pensions, bonuses, commissions, and gambling winnings. Efile tax return for free In each case, the amount withheld is paid to the U. Efile tax return for free S. Efile tax return for free Treasury in your name. Efile tax return for free Estimated tax. Efile tax return for free If you do not pay your tax through withholding, or do not pay enough tax that way, you might have to pay estimated tax. Efile tax return for free People who are in business for themselves generally will have to pay their tax this way. Efile tax return for free You may have to pay estimated tax if you receive income such as dividends, interest, rent, and royalties. Efile tax return for free Estimated tax is used to pay not only income tax, but self-employment tax and alternative minimum tax as well. Efile tax return for free Topics - This chapter discusses: How to notify your employer of your alien status, Income subject to withholding of income tax, Exemptions from withholding, Social security and Medicare taxes, and Estimated tax rules. Efile tax return for free Useful Items - You may want to see: Publication 515 Withholding of Tax on Nonresident Aliens and Foreign Entities 901 U. Efile tax return for free S. Efile tax return for free Tax Treaties Form (and Instructions) W-4 Employee's Withholding Allowance Certificate W-8BEN Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting (Individuals) W-8ECI Certificate of Foreign Person's Claim That Income Is Effectively Connected With the Conduct of a Trade or Business in the United States W-9 Request for Taxpayer Identification Number and Certification 1040-ES (NR) U. Efile tax return for free S. Efile tax return for free Estimated Tax for Nonresident Alien Individuals 8233 Exemption From Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual 8288-B Application for Withholding Certificate for Dispositions by Foreign Persons of U. Efile tax return for free S. Efile tax return for free Real Property Interests 13930 Application for Central Withholding Agreement See chapter 12 for information about getting these publications and forms. Efile tax return for free Notification of Alien Status You must let your employer know whether you are a resident or a nonresident alien so your employer can withhold the correct amount of tax from your wages. Efile tax return for free If you are a resident alien under the rules discussed in chapter 1, you must file Form W-9 or a similar statement with your employer. Efile tax return for free If you are a nonresident alien under those rules, you must furnish to your employer Form 8233 or Form W-8BEN, establishing that you are a foreign person, or Form W-4, establishing that your compensation is subject to graduated withholding at the same rates as resident aliens or U. Efile tax return for free S. Efile tax return for free citizens. Efile tax return for free If you are a resident alien and you receive income other than wages (such as dividends and royalties) from sources within the United States, file Form W-9 or similar statement with the withholding agent (generally, the payer of the income) so the agent will not withhold tax on the income at the 30% (or lower treaty) rate. Efile tax return for free If you receive this type of income as a nonresident alien, file Form W-8BEN with the withholding agent so that the agent will withhold tax at the 30% (or lower treaty) rate. Efile tax return for free However, if the income is effectively connected with a U. Efile tax return for free S. Efile tax return for free trade or business, file Form W-8ECI instead. Efile tax return for free Withholding From Compensation The following discussion generally applies only to nonresident aliens. Efile tax return for free Tax is withheld from resident aliens in the same manner as U. Efile tax return for free S. Efile tax return for free citizens. Efile tax return for free Wages and other compensation paid to a nonresident alien for services performed as an employee are usually subject to graduated withholding at the same rates as resident aliens and U. Efile tax return for free S. Efile tax return for free citizens. Efile tax return for free Therefore, your compensation, unless it is specifically excluded from the term “wages” by law, or is exempt from tax by treaty, is subject to graduated withholding. Efile tax return for free Withholding on Wages If you are an employee and you receive wages subject to graduated withholding, you will be required to fill out a Form W-4. Efile tax return for free Also fill out Form W-4 for a scholarship or fellowship grant to the extent it represents payment for past, present, or future services and for which you are not claiming a tax treaty withholding exemption on Form 8233 (discussed later under Income Entitled to Tax Treaty Benefits). Efile tax return for free These are services you are required to perform as an employee and as a condition of receiving the scholarship or fellowship (or tuition reduction). Efile tax return for free Nonresident aliens should fill out Form W-4 using the following instructions instead of the instructions on the Form W-4. Efile tax return for free This is because of the restrictions on a nonresident alien's filing status, the limited number of personal exemptions a nonresident alien is allowed, and because a nonresident alien cannot claim the standard deduction. Efile tax return for free Enter your social security number (SSN) on line 2. Efile tax return for free Do not enter an individual taxpayer identification number (ITIN). Efile tax return for free Check only “Single” marital status on line 3 (regardless of your actual marital status). Efile tax return for free Claim only one allowance on line 5, unless you are a resident of Canada, Mexico, or South Korea, or a U. Efile tax return for free S. Efile tax return for free national. Efile tax return for free Write “Nonresident Alien” or “NRA” on the dotted line on line 6. Efile tax return for free You can request additional withholding on line 6 at your option. Efile tax return for free Do not claim “Exempt” withholding status on line 7. Efile tax return for free A U. Efile tax return for free S. Efile tax return for free national is an individual who, although not a U. Efile tax return for free S. Efile tax return for free citizen, owes his or her allegiance to the United States. Efile tax return for free U. Efile tax return for free S. Efile tax return for free nationals include American Samoans, and Northern Mariana Islanders who chose to become U. Efile tax return for free S. Efile tax return for free nationals instead of U. Efile tax return for free S. Efile tax return for free citizens. Efile tax return for free See Withholding on Scholarships and Fellowship Grants later, for how to fill out Form W-4 if you receive a U. Efile tax return for free S. Efile tax return for free source scholarship or fellowship grant that is not a payment for services. Efile tax return for free Students and business apprentices from India. Efile tax return for free   If you are eligible for the benefits of Article 21(2) of the United States-India Income Tax Treaty, you may claim an additional withholding allowance for the standard deduction. Efile tax return for free You can claim an additional withholding allowance for your spouse only if your spouse will have no gross income for 2013 and cannot be claimed as a dependent on another U. Efile tax return for free S. Efile tax return for free taxpayer's 2013 return. Efile tax return for free You may also claim an additional withholding allowance for each of your dependents not admitted to the United States on “F-2,” “J-2,” or “M-2” visas if they meet the same rules that apply to U. Efile tax return for free S. Efile tax return for free citizens. Efile tax return for free Household employees. Efile tax return for free   If you work as a household employee, your employer does not have to withhold income tax. Efile tax return for free However, you may agree to voluntary income tax withholding by filing a Form W-4 with your employer. Efile tax return for free The agreement goes into effect when your employer accepts the agreement by beginning the withholding. Efile tax return for free You or your employer may end the agreement by letting the other know in writing. Efile tax return for free Agricultural workers. Efile tax return for free   If you are an agricultural worker on an H-2A visa, your employer does not have to withhold income tax. Efile tax return for free However, your employer will withhold income tax only if you and your employer agree to withhold. Efile tax return for free In that case, you must provide your employer with a properly completed Form W-4. Efile tax return for free You can find more information about not having tax withheld at www. Efile tax return for free irs. Efile tax return for free gov/Individuals/International-Taxpayers/Foreign-Agricultural-Workers. Efile tax return for free Wages Exempt From Withholding Wages that are exempt from U. Efile tax return for free S. Efile tax return for free income tax under an income tax treaty are generally exempt from withholding. Efile tax return for free For information on how to claim this exemption from withholding, see Income Entitled to Tax Treaty Benefits , later. Efile tax return for free Wages paid to aliens who are residents of American Samoa, Canada, Mexico, Puerto Rico, or the U. Efile tax return for free S. Efile tax return for free Virgin Islands may be exempt from withholding. Efile tax return for free The following paragraphs explain these exemptions. Efile tax return for free Residents of Canada or Mexico engaged in transportation-related employment. Efile tax return for free   Certain residents of Canada or Mexico who enter or leave the United States at frequent intervals are not subject to withholding on their wages. Efile tax return for free These persons either: Perform duties in transportation service between the United States and Canada or Mexico, or Perform duties connected to the construction, maintenance, or operation of a waterway, viaduct, dam, or bridge crossed by, or crossing, the boundary between the United States and Canada or the boundary between the United States and Mexico. Efile tax return for free    This employment is subject to withholding of social security and Medicare taxes unless the services are performed for a railroad. Efile tax return for free   To qualify for the exemption from withholding during a tax year, a Canadian or Mexican resident must give the employer a statement in duplicate with name, address, and identification number, certifying that the resident: Is not a U. Efile tax return for free S. Efile tax return for free citizen or resident, Is a resident of Canada or Mexico, whichever applies, and Expects to perform duties previously described during the tax year in question. Efile tax return for free   The statement can be in any form, but it must be dated and signed by the employee and must include a written declaration that it is made under the penalties of perjury. Efile tax return for free Residents of American Samoa and Puerto Rico. Efile tax return for free   If you are a nonresident alien employee who is a resident of American Samoa or Puerto Rico, wages for services performed in American Samoa or Puerto Rico are generally not subject to withholding unless you are an employee of the United States or any of its agencies in American Samoa or Puerto Rico. Efile tax return for free Residents of the U. Efile tax return for free S. Efile tax return for free Virgin Islands. Efile tax return for free   Nonresident aliens who are bona fide residents of the U. Efile tax return for free S Virgin Islands are not subject to withholding of U. Efile tax return for free S. Efile tax return for free tax on income earned while temporarily employed in the United States. Efile tax return for free This is because those persons pay their income tax to the U. Efile tax return for free S. Efile tax return for free Virgin Islands. Efile tax return for free To avoid having tax withheld on income earned in the United States, bona fide residents of the U. Efile tax return for free S. Efile tax return for free Virgin Islands should write a letter, in duplicate, to their employers, stating that they are bona fide residents of the U. Efile tax return for free S. Efile tax return for free Virgin Islands and expect to pay tax on all income to the U. Efile tax return for free S. Efile tax return for free Virgin Islands. Efile tax return for free Withholding on Pensions If you receive a pension as a result of personal services performed in the United States, the pension income is subject to the 30% (or lower treaty) rate of withholding. Efile tax return for free You may, however, have tax withheld at graduated rates on the portion of the pension that arises from the performance of services in the United States after December 31, 1986. Efile tax return for free You must fill out Form W-8BEN and give it to the withholding agent or payer before the income is paid or credited to you. Efile tax return for free Withholding on Tip Income Tips you receive during the year for services performed in the United States are subject to U. Efile tax return for free S. Efile tax return for free income tax. Efile tax return for free Include them in taxable income. Efile tax return for free In addition, tips received while working for one employer, amounting to $20 or more in a month, are subject to graduated withholding. Efile tax return for free Independent Contractors If there is no employee-employer relationship between you and the person for whom you perform services, your compensation is subject to the 30% (or lower treaty) rate of withholding. Efile tax return for free However, if you are engaged in a trade or business in the United States during the tax year, your compensation for personal services as an independent contractor (independent personal services) may be entirely or partly exempt from withholding if you reach an agreement with the Internal Revenue Service on the amount of withholding required. Efile tax return for free An agreement that you reach with the IRS regarding withholding from your compensation for independent personal services is effective for payments covered by the agreement after it is agreed to by all parties. Efile tax return for free You must agree to timely file an income tax return for the current tax year. Efile tax return for free Central withholding agreements. Efile tax return for free   If you are a nonresident alien entertainer or athlete performing or participating in athletic events in the United States, you may be able to enter into a withholding agreement with the IRS for reduced withholding provided certain requirements are met. Efile tax return for free Under no circumstances will such a withholding agreement reduce taxes withheld to less than the anticipated amount of income tax liability. Efile tax return for free   File Form 13930 and the required attachments with the IRS to request a central withholding agreement. Efile tax return for free Either you or your authorized representative can file the form. Efile tax return for free It should be sent to the IRS at least 45 days before the tour begins or the event occurs. Efile tax return for free Exceptions will be considered on a case by case basis. Efile tax return for free   For more information on the CWA program, go to www. Efile tax return for free irs. Efile tax return for free gov/Individuals/International-Taxpayers/Central-Withholding-Agreements. Efile tax return for free Final payment exemption. Efile tax return for free   Your final payment of compensation during the tax year for independent personal services may be entirely or partly exempt from withholding. Efile tax return for free This exemption is available only once during your tax year and applies to a maximum of $5,000 of compensation. Efile tax return for free To obtain this exemption, you or your agent must give the following statements and information to the Commissioner or his delegate. Efile tax return for free A statement by each withholding agent from whom you have received gross income effectively connected with a trade or business in the United States during the tax year, showing the amount of income paid and the tax withheld. Efile tax return for free Each statement must be signed by the withholding agent and verified by a declaration that it is made under penalties of perjury. Efile tax return for free A statement by the withholding agent from whom you expect to receive the final payment of compensation, showing the amount of the payment and the amount of tax that would be withheld if a final payment exemption were not granted. Efile tax return for free This statement must also be signed by the withholding agent and verified by a declaration that it is made under penalties of perjury. Efile tax return for free A statement by you that you do not intend to receive any other income effectively connected with a trade or business in the United States during the current tax year. Efile tax return for free The amount of tax that has been withheld or paid under any other provision of the Internal Revenue Code or regulations for any income effectively connected with your trade or business in the United States during the current tax year. Efile tax return for free The amount of your outstanding tax liabilities, if any, including interest and penalties, from the current tax year or prior tax periods. Efile tax return for free Any provision of an income tax treaty under which a partial or complete exemption from withholding may be claimed, the country of your residence, and a statement of sufficient facts to justify an exemption under the treaty. Efile tax return for free A statement signed by you, and verified by a declaration that it is made under penalties of perjury, that all the information given is true and that to your knowledge no relevant information has been omitted. Efile tax return for free   If satisfied with the information, the IRS will determine the amount of your tentative income tax for the tax year on gross income effectively connected with your trade or business in the United States. Efile tax return for free Ordinary and necessary business expenses can be taken into account if proven to the satisfaction of the Commissioner or his delegate. Efile tax return for free   The Commissioner or his delegate will send you a letter, directed to the withholding agent, showing the amount of the final payment of compensation that is exempt from withholding and the amount that can be paid to you because of the exemption. Efile tax return for free You must give two copies of the letter to the withholding agent and must also attach a copy of the letter to your income tax return for the tax year for which the exemption is effective. Efile tax return for free Allowance for Personal Exemption Withholding on payments for independent personal services is generally based on the amount of your compensation payment minus the value of one exemption ($3,950 for 2014). Efile tax return for free To determine the income for independent personal services performed in the United States to which the 30% (or lower treaty) rate will apply, you are allowed one personal exemption if you are not a U. Efile tax return for free S. Efile tax return for free national and are not a resident of Canada, Mexico, or South Korea. Efile tax return for free For purposes of 30% withholding, the exemption is prorated at $10. Efile tax return for free 82 a day in 2014 for the period that labor or personal services are performed in the United States. Efile tax return for free To claim an exemption from withholding on the personal exemption amount, fill out the applicable parts of Form 8233 and give it to the withholding agent. Efile tax return for free Example. Efile tax return for free Eric Johannsen, who is a resident of Country X worked under a contract with a U. Efile tax return for free S. Efile tax return for free firm (not as an employee) in the United States for 100 days during 2014 before returning to his country. Efile tax return for free He earned $6,000 for the services performed (not considered wages) in the United States. Efile tax return for free Eric is married and has three dependent children. Efile tax return for free His wife is not employed and has no income subject to U. Efile tax return for free S. Efile tax return for free tax. Efile tax return for free The amount of the personal exemption to be allowed against the income for his personal services performed within the United States in 2014 is $1,082 (100 days × $10. Efile tax return for free 82), and withholding at 30% is applied against the balance. Efile tax return for free Thus, $1,475. Efile tax return for free 40 in tax is withheld from Eric's earnings (30% of $4,918 ($6,000 − $1,082). Efile tax return for free U. Efile tax return for free S. Efile tax return for free nationals or residents of Canada, Mexico, or South Korea. Efile tax return for free   If you are a nonresident alien who is a resident of Canada, Mexico, or South Korea, or who is a national of the United States, you are subject to the same 30% withholding on your compensation for independent personal services performed in the United States. Efile tax return for free However, if you are a U. Efile tax return for free S. Efile tax return for free national or a resident of Canada or Mexico, you are allowed the same personal exemptions as U. Efile tax return for free S. Efile tax return for free citizens. Efile tax return for free For the 30% (or lower treaty) rate withholding, you can take $10. Efile tax return for free 82 per day for each allowable exemption in 2014. Efile tax return for free If you are a resident of South Korea, you are allowed personal exemptions for yourself and for your spouse and children who live with you in the United States at any time during the tax year. Efile tax return for free However, the additional exemptions for your spouse and children must be further prorated as explained in chapter 5 under Exemptions . Efile tax return for free Students and business apprentices from India. Efile tax return for free   If you are eligible for the benefits of Article 21(2) of the United States-India Income Tax Treaty, you are allowed an exemption for your spouse only if your spouse will have no gross income for 2014 and cannot be claimed as a dependent on another U. Efile tax return for free S. Efile tax return for free taxpayer's 2014 return. Efile tax return for free You are also allowed an exemption for each dependent not admitted to the United States on “F-2,” “J-2,” or “M-2” visas if they meet the same rules that apply to U. Efile tax return for free S. Efile tax return for free citizens. Efile tax return for free For the 30% (or lower treaty rate) withholding on compensation for independent personal services performed in the United States, you are allowed $10. Efile tax return for free 82 per day for each allowable exemption in 2014. Efile tax return for free Refund of Taxes Withheld in Error Multi-level marketing. Efile tax return for free   If you are a distributor for a multi-level marketing company who had taxes withheld in error, file a U. Efile tax return for free S. Efile tax return for free income tax return (Form 1040NR, Form 1040NR-EZ, or Form 1120-F) or, if a tax return has already been filed, a claim for refund (Form 1040X or amended Form 1120-F) to recover the amount withheld in error. Efile tax return for free You must also attach to the U. Efile tax return for free S. Efile tax return for free income tax return or claim for refund supporting information that includes, but is not limited to, the following items. Efile tax return for free A copy of your Form W-2, Form 1042-S, or Form 1099 to prove the amount of taxes withheld. Efile tax return for free A statement explaining why income reported on your Form W-2, Form 1042-S, or Form 1099 is not subject to U. Efile tax return for free S. Efile tax return for free taxation. Efile tax return for free A statement listing all the dates you entered and left the United States during the taxable year. Efile tax return for free If the compensation is multi-year compensation, the statement must list all the dates you entered and left the United States during each of the taxable years to which the compensation is attributable. Efile tax return for free A copy of any documents or records that show the number of days you actually were present in the United States during the years listed. Efile tax return for free A statement providing: (a) the number of days (or unit of time less than a day, if appropriate) that personal services were performed in the United States in connection with recruiting, training, and supporting your lower-tier distributors; and (b) the total number of days (or unit of time less than a day, if appropriate) that personal services were performed globally in connection with recruiting, training, and supporting your lower-tier distributors. Efile tax return for free Any further relevant document or record supporting your claim that the taxes were withheld in error. Efile tax return for free Withholding From Other Income Other income subject to 30% withholding generally includes fixed or determinable income such as interest (other than portfolio interest), dividends, pensions and annuities, and gains from certain sales and exchanges, discussed in chapter 4. Efile tax return for free It also includes 85% of social security benefits paid to nonresident aliens. Efile tax return for free Refund of taxes withheld in error on social security benefits paid to resident aliens. Efile tax return for free   Social security benefits paid to a lawful permanent resident (green card holder) are not subject to 30% withholding. Efile tax return for free For U. Efile tax return for free S. Efile tax return for free income tax purposes, green card holders continue to be resident aliens until their lawful permanent resident status under immigration laws is either taken away or is administratively or judicially determined to have been abandoned. Efile tax return for free See Green Card Test in chapter 1. Efile tax return for free If you are a green card holder and tax was withheld in error on your social security benefits because you have a foreign address, the withholding tax is refundable by the Social Security Administration (SSA) or the IRS. Efile tax return for free SSA will refund taxes erroneously withheld if the refund can be processed during the same calendar year in which the tax was withheld. Efile tax return for free If SSA cannot refund the taxes withheld, you must file a Form 1040 or 1040A with the Department of the Treasury, Internal Revenue Service Center, Austin, TX 73301 to determine if you are entitled to a refund. Efile tax return for free You must also attach the following to your Form 1040 or 1040A. Efile tax return for free A copy of Form SSA-1042S, Social Security Benefit Statement. Efile tax return for free A copy of the “green card. Efile tax return for free ” A signed declaration that includes the following statements: The SSA should not have withheld income tax from my social security benefits because I am a U. Efile tax return for free S. Efile tax return for free lawful permanent resident and my green card has been neither revoked nor administratively or judicially determined to have been abandoned. Efile tax return for free I am filing a U. Efile tax return for free S. Efile tax return for free income tax return for the tax year as a resident alien reporting all of my worldwide income. Efile tax return for free I have not claimed benefits for the tax year under an income tax treaty as the resident of a country other than the United States. Efile tax return for free Other income not subject to withholding of 30% (or lower treaty) rate. Efile tax return for free   The following income is not subject to withholding at the 30% (or lower treaty) rate if you file Form W-8ECI with the payer of the income. Efile tax return for free Income (other than compensation) that is effectively connected with your U. Efile tax return for free S. Efile tax return for free trade or business. Efile tax return for free Income from real property that you choose to treat as effectively connected with a U. Efile tax return for free S. Efile tax return for free trade or business. Efile tax return for free See Income From Real Property in chapter 4 for details about this choice. Efile tax return for free   Special rules for withholding on partnership income, scholarships, and fellowships are explained next. Efile tax return for free Tax Withheld on Partnership Income If you are a foreign partner in a U. Efile tax return for free S. Efile tax return for free or foreign partnership, the partnership will withhold tax on your share of effectively connected taxable income (ECTI) from the partnership. Efile tax return for free You may be able to reduce your ECTI subject to withholding by certain partner-level deductions. Efile tax return for free Generally, you must use Form 8804-C for this purpose. Efile tax return for free See the Instructions for Form 8804-C for more information. Efile tax return for free The withholding rate on your share of effectively connected income is generally the highest rate of tax specified under section 1 of the Code (39. Efile tax return for free 6% for 2014). Efile tax return for free However, the partnership may withhold at the highest rate that applies to a particular type of income allocable to you if you gave the partnership the appropriate documentation. Efile tax return for free Long-term capital gain is an example of a particular type of income to which the highest tax rate applies. Efile tax return for free Claim the tax withheld as a credit on your 2014 Form 1040NR. Efile tax return for free The partnership will give you a statement on Form 8805, Foreign Partner's Information Statement of Section 1446 Withholding Tax, showing the tax withheld. Efile tax return for free A partnership that is publicly traded will withhold tax on your actual distributions of effectively connected income. Efile tax return for free In this case the partnership will give you a statement on Form 1042-S, Foreign Person's U. Efile tax return for free S. Efile tax return for free Source Income Subject to Withholding. Efile tax return for free Withholding on Scholarships and Fellowship Grants There is no withholding on a qualified scholarship received by a candidate for a degree. Efile tax return for free See chapter 3. Efile tax return for free If you are a nonresident alien student or grantee with an “F,” “J,” “M,” or “Q” visa and you receive a U. Efile tax return for free S. Efile tax return for free source grant or scholarship that is not fully exempt, the withholding agent (usually the payer of the scholarship) withholds tax at 14% (or lower treaty rate) of the taxable part of the grant or scholarship that is not a payment for services. Efile tax return for free However, if you are not a candidate for a degree and the grant does not meet certain requirements, tax will be withheld at the 30% (or lower treaty) rate. Efile tax return for free Any part of a scholarship or fellowship grant that is a payment for services is subject to graduated withholding as discussed earlier under Withholding on Wages. Efile tax return for free Alternate Withholding Procedure Your withholding agent may choose to use an alternate procedure by asking you to fill out Form W-4 and the Personal Allowances Worksheet (attached to Form W-4). Efile tax return for free Use the following instructions instead of the Form W-4 instructions to complete the worksheet. Efile tax return for free Line A. Efile tax return for free   Enter the total of the following amounts on line A. Efile tax return for free Personal exemption. Efile tax return for free   Include the prorated part of your allowable personal exemption. Efile tax return for free Figure the amount by multiplying the number of days you expect to be in the United States in 2014 by the daily exemption amount ($10. Efile tax return for free 82). Efile tax return for free Expenses. Efile tax return for free   Include expenses that will be deductible on your return. Efile tax return for free These include away-from-home expenses (meals, lodging, and transportation), certain state and local income taxes, charitable contributions, and casualty losses, discussed earlier under Itemized Deductions in chapter 5. Efile tax return for free They also include business expenses, moving expenses, and the IRA deduction discussed under Deductions in chapter 5. Efile tax return for free Nontaxable grant or scholarship. Efile tax return for free   Include the part of your grant or scholarship that is not taxable under U. Efile tax return for free S. Efile tax return for free law or under a tax treaty. Efile tax return for free Line B. Efile tax return for free   Enter -0- unless the following paragraph applies to you. Efile tax return for free   If you are a student who qualifies under Article 21(2) of the United States-India Income Tax Treaty, and you are not claiming deductions for away-from-home expenses or other itemized deductions (discussed earlier), enter the standard deduction on line B. Efile tax return for free The standard deduction amount for 2013 is $6,100. Efile tax return for free Lines C and D. Efile tax return for free   Enter -0- on both lines unless the following paragraphs apply to you. Efile tax return for free   If you are a resident of Canada, Mexico, South Korea, or a U. Efile tax return for free S. Efile tax return for free national, an additional daily exemption amount may be allowed for your spouse and each of your dependents. Efile tax return for free   If you are a resident of India who is eligible for the benefits of Article 21(2) of the United States-India Income Tax Treaty, you can claim an additional daily exemption amount for your spouse only if your spouse will have no gross income for 2014 and cannot be claimed as a dependent on another U. Efile tax return for free S. Efile tax return for free taxpayer's 2014 return. Efile tax return for free You can also claim an additional amount for each of your dependents not admitted to the United States on “F-2,” “J-2,” or “M-2” visas if they meet the same rules that apply to U. Efile tax return for free S. Efile tax return for free citizens. Efile tax return for free   Enter any additional amount for your spouse on line C. Efile tax return for free Enter any additional amount for your dependents on line D. Efile tax return for free Lines E, F, and G. Efile tax return for free   No entries should be made on lines E, F, and G. Efile tax return for free Line H. Efile tax return for free   Add the amounts on lines A through D and enter the total on line H. Efile tax return for free Form W-4. Efile tax return for free   Complete lines 1 through 4 of Form W-4. Efile tax return for free Sign and date the form and give it with the Personal Allowances Worksheet to your withholding agent. Efile tax return for free   If you file a Form W-4 to reduce or eliminate the withholding on your scholarship or grant, you must file an annual U. Efile tax return for free S. Efile tax return for free income tax return to be allowed the exemptions and deductions you claimed on that form. Efile tax return for free If you are in the United States during more than one tax year, you must attach a statement to your yearly Form W-4 indicating that you have filed a U. Efile tax return for free S. Efile tax return for free income tax return for the previous year. Efile tax return for free If you have not been in the United States long enough to be required to file a return, you must attach a statement to your Form W-4 saying you will file a U. Efile tax return for free S. Efile tax return for free income tax return when required. Efile tax return for free After the withholding agent has accepted your Form W-4, tax will be withheld on your scholarship or grant at the graduated rates that apply to wages. Efile tax return for free The gross amount of the income is reduced by the amount on line H of the worksheet and the withholding tax is figured on the remainder. Efile tax return for free You will receive a Form 1042-S from the withholding agent (usually the payer of your grant) showing the gross amount of your taxable scholarship or fellowship grant less the withholding allowance amount, the tax rate, and the amount of tax withheld. Efile tax return for free Use this form to prepare your annual U. Efile tax return for free S. Efile tax return for free income tax return. Efile tax return for free Income Entitled to Tax Treaty Benefits If a tax treaty between the United States and your country provides an exemption from, or a reduced rate of, tax for certain items of income, you should notify the payor of the income (the withholding agent) of your foreign status to claim a tax treaty withholding exemption. Efile tax return for free Generally, you do this by filing either Form W-8BEN or Form 8233 with the withholding agent. Efile tax return for free File Form W-8BEN for income that is not personal services income. Efile tax return for free File Form 8233 for personal services income as discussed next. Efile tax return for free Employees and independent contractors. Efile tax return for free   If you perform personal services as an employee or as an independent contractor and you can claim an exemption from withholding on that personal service income because of a tax treaty, give Form 8233 to each withholding agent from whom amounts will be received. Efile tax return for free   Even if you submit Form 8233, the withholding agent may have to withhold tax from your income. Efile tax return for free This is because the factors on which the treaty exemption is based may not be determinable until after the close of the tax year. Efile tax return for free In this case, you must file Form 1040NR (or Form 1040NR-EZ if you qualify) to recover any overwithheld tax and to provide the IRS with proof that you are entitled to the treaty exemption. Efile tax return for free Students, teachers, and researchers. Efile tax return for free   Students, teachers, and researchers must attach the appropriate statement shown in Appendix A (for students) or Appendix B (for teachers and researchers) at the end of this publication to the Form 8233 and give it to the withholding agent. Efile tax return for free For treaties not listed in the appendices, attach a statement in a format similar to those for other treaties. Efile tax return for free   If you received a scholarship or fellowship and personal services income from the same withholding agent, use Form 8233 to claim an exemption from withholding based on a tax treaty for both types of income. Efile tax return for free Special events and promotions. Efile tax return for free   Withholding at the full 30% rate is required for payments made to a nonresident alien or foreign corporation for gate receipts (or television or other receipts) from rock music festivals, boxing promotions, and other entertainment or sporting events, unless the withholding agent has been specifically advised otherwise by letter from the IRS. Efile tax return for free Form 13930 is used to request a reduction in withholding. Efile tax return for free Withholding may be required even if the income may be exempt from taxation by provisions of a tax treaty. Efile tax return for free One reason for this is that the partial or complete exemption is usually based on factors that cannot be determined until after the close of the tax year. Efile tax return for free You will be required to pay U. Efile tax return for free S. Efile tax return for free tax, at the time of your departure from the United States, on any income for which you incorrectly claimed a treaty exemption. Efile tax return for free For more details on treaty provisions that apply to compensation, see Publication 901. Efile tax return for free Tax Withheld on Real Property Sales If you are a nonresident alien and you dispose of a U. Efile tax return for free S. Efile tax return for free real property interest, the transferee (buyer) of the property generally must withhold a tax equal to 10% of the amount realized on the disposition. Efile tax return for free A distribution by a qualified investment entity to a nonresident alien shareholder that is treated as gain from the sale or exchange of a U. Efile tax return for free S. Efile tax return for free real property interest by the shareholder is subject to withholding at 35%. Efile tax return for free Withholding is also required on certain distributions and other transactions by domestic or foreign corporations, partnerships, trusts, and estates. Efile tax return for free These rules are covered in Publication 515. Efile tax return for free For information on the tax treatment of dispositions of U. Efile tax return for free S. Efile tax return for free real property interests, see Real Property Gain or Loss in chapter 4. Efile tax return for free If you are a partner in a domestic partnership, and the partnership disposes of a U. Efile tax return for free S. Efile tax return for free real property interest at a gain, the partnership will withhold tax on the amount of gain allocable to its foreign partners. Efile tax return for free Your share of the income and tax withheld will be reported to you on Form 8805, Foreign Partner's Information Statement of Section 1446 Withholding Tax, or Form 1042-S, Foreign Person's U. Efile tax return for free S. Efile tax return for free Source Income Subject to Withholding (in the case of a publicly traded partnership). Efile tax return for free Withholding is not required in the following situations. Efile tax return for free The property is acquired by the buyer for use as a residence and the amount realized (sales price) is not more than $300,000. Efile tax return for free The property disposed of is an interest in a domestic corporation if any class of stock of the corporation is regularly traded on an established securities market. Efile tax return for free However, this exception does not apply to certain dispositions of substantial amounts of non-publicly traded interests in publicly traded corporations. Efile tax return for free The property disposed of is an interest in a U. Efile tax return for free S. Efile tax return for free corporation that is not regularly traded on an established market and you (the seller) give the buyer a copy of a statement issued by the corporation certifying that the interest is not a U. Efile tax return for free S. Efile tax return for free real property interest. Efile tax return for free You (the seller) give the buyer a certification stating, under penalties of perjury, that you are not a foreign person, and containing your name, U. Efile tax return for free S. Efile tax return for free taxpayer identification number, and home address. Efile tax return for free You can give the certification to a qualified substitute. Efile tax return for free The qualified substitute gives the buyer a statement, under penalties of perjury, that the certification is in the possession of the qualified substitute. Efile tax return for free For this purpose, a qualified substitute is (a) the person (including any attorney or title company) responsible for closing the transaction, other than your agent, and (b) the buyer's agent. Efile tax return for free The buyer receives a withholding certificate from the Internal Revenue Service. Efile tax return for free You give the buyer written notice that you are not required to recognize any gain or loss on the transfer because of a nonrecognition provision in the Internal Revenue Code or a provision in a U. Efile tax return for free S. Efile tax return for free tax treaty. Efile tax return for free The buyer must file a copy of the notice with the Ogden Service Center, P. Efile tax return for free O. Efile tax return for free Box 409101, Ogden, UT 84409. Efile tax return for free You must verify the notice as true and sign it under penalties of perjury. Efile tax return for free The notice must contain the following information. Efile tax return for free A statement that the notice is a notice of nonrecognition under regulation section 1. Efile tax return for free 1445-2(d)(2). Efile tax return for free Your name, taxpayer identification number, and home address. Efile tax return for free A statement that you are not required to recognize any gain or loss on the transfer. Efile tax return for free A brief description of the transfer. Efile tax return for free A brief summary of the law and facts supporting your claim that recognition of gain or loss is not required. Efile tax return for free You may not give the buyer a written notice for any of the following transfers: the sale of your main home on which you exclude gain, a like-kind exchange that does not qualify for nonrecognition treatment in its entirety, or a deferred like-kind exchange that has not been completed at the time the buyer must file Form 8288. Efile tax return for free Instead, a withholding certificate (described next) must be obtained. Efile tax return for free The amount you realize on the transfer of a U. Efile tax return for free S. Efile tax return for free real property interest is zero. Efile tax return for free The property is acquired by the United States, a U. Efile tax return for free S. Efile tax return for free state or possession, a political subdivision, or the District of Columbia. Efile tax return for free The distribution is from a domestically controlled qualified investment entity (QIE) and is treated as a distribution of a U. Efile tax return for free S. Efile tax return for free real property interest only because an interest in the entity was disposed of in an applicable wash sale transaction. Efile tax return for free For the definition of a QIE, see Qualified investment entities under Real Property Gain or Loss, earlier. Efile tax return for free See Wash sale under Real Property Gain or Loss in chapter 4. Efile tax return for free The certifications in (3) and (4) must be disregarded by the buyer if the buyer or qualified substitute has actual knowledge, or receives notice from a seller's or buyer's agent (or substitute), that they are false. Efile tax return for free This also applies to the qualified substitute's statement under (4). Efile tax return for free Withholding certificates. Efile tax return for free   The tax required to be withheld on a disposition can be reduced or eliminated under a withholding certificate issued by the IRS. Efile tax return for free Either you or the buyer can request a withholding certificate. Efile tax return for free   A withholding certificate can be issued due to any of the following. Efile tax return for free The IRS determines that reduced withholding is appropriate because either: The amount required to be withheld would be more than your maximum tax liability, or Withholding of the reduced amount would not jeopardize collection of the tax. Efile tax return for free All of your realized gain is exempt from U. Efile tax return for free S. Efile tax return for free tax. Efile tax return for free You or the buyer enters into an agreement for the payment of tax providing security for the tax liability. Efile tax return for free   Get Publication 515 and Form 8288-B for information on procedures to request a withholding certificate. Efile tax return for free Credit for tax withheld. Efile tax return for free   The buyer must report and pay over the withheld tax within 20 days after the transfer using Form 8288, U. Efile tax return for free S. Efile tax return for free Withholding Tax Return for Dispositions by Foreign Persons of U. Efile tax return for free S. Efile tax return for free Real Property Interests. Efile tax return for free This form is filed with the IRS with copies A and B of Form 8288-A, Statement of Withholding on Dispositions by Foreign Persons of U. Efile tax return for free S. Efile tax return for free Real Property Interests. Efile tax return for free Copy B of this statement will be stamped received by the IRS and returned to you (the seller) if the statement is complete and includes your taxpayer identification number (TIN). Efile tax return for free You must file Copy B with your tax return to take credit for the tax withheld. Efile tax return for free   A stamped copy of Form 8288-A will not be provided to you if your TIN is not included on that form. Efile tax return for free The IRS will send you a letter requesting the TIN and providing instructions for how to get a TIN. Efile tax return for free When you provide the IRS with a TIN, the IRS will provide you with a stamped Copy B of Form 8288-A. Efile tax return for free Social Security and Medicare Taxes If you work as an employee in the United States, you must pay social security and Medicare taxes in most cases. Efile tax return for free Your payments of these taxes contribute to your coverage under the U. Efile tax return for free S. Efile tax return for free social security system. Efile tax return for free Social security coverage provides retirement benefits, survivors and disability benefits, and medical insurance (Medicare) benefits to individuals who meet certain eligibility requirements. Efile tax return for free In most cases, the first $113,700 of taxable wages received in 2013 for services performed in the United States is subject to social security tax. Efile tax return for free All taxable wages are subject to Medicare tax. Efile tax return for free Your employer deducts these taxes from each wage payment. Efile tax return for free Your employer must deduct these taxes even if you do not expect to qualify for social security or Medicare benefits. Efile tax return for free You can claim a credit for excess social security tax on your income tax return if you have more than one employer and the amount deducted from your combined wages for 2013 is more than $7,049. Efile tax return for free 40. Efile tax return for free Use the appropriate worksheet in chapter 3 of Publication 505, Tax Withholding and Estimated Tax, to figure your credit. Efile tax return for free If any one employer deducted more than $7,049. Efile tax return for free 40, you cannot claim a credit for that amount. Efile tax return for free Ask your employer to refund the excess. Efile tax return for free If your employer does not refund the excess, you can file a claim for refund using Form 843. Efile tax return for free In general, U. Efile tax return for free S. Efile tax return for free social security and Medicare taxes apply to payments of wages for services performed as an employee in the United States, regardless of the citizenship or residence of either the employee or the employer. Efile tax return for free In limited situations, these taxes apply to wages for services performed outside the United States. Efile tax return for free Your employer should be able to tell you if social security and Medicare taxes apply to your wages. Efile tax return for free You cannot make voluntary payments if no taxes are due. Efile tax return for free Additional Medicare Tax. Efile tax return for free   Beginning in 2013, in addition to the Medicare tax, a 0. Efile tax return for free 9% Additional Medicare Tax applies to Medicare wages, Railroad Retirement Tax Act (RRTA) compensation, and self-employment income that are more than: $250,000 if married filing jointly, $125,000 if married filing separately, or $200,000 for any other filing status. Efile tax return for free   There are no special rules for nonresident aliens for purposes of Additional Medicare Tax. Efile tax return for free Wages, RRTA compensation, and self-employment income that are subject to Medicare tax will also be subject to Additional Medicare Tax if in excess of the applicable threshold. Efile tax return for free   Your employer is responsible for withholding the 0. Efile tax return for free 9% Additional Medicare Tax on Medicare wages or RRTA compensation it pays to you in excess of $200,000 in the calendar year. Efile tax return for free If you intend to file a joint return and you anticipate that you and your spouse's individual wages are not going to be more than $200,000 but your combined wages and self-employment income are going to be more than $250,000, you may want to request additional withholding on Form W-4 and/or make estimated tax payments. Efile tax return for free   If you file Form 1040NR, you must pay Additional Medicare Tax if the total of your wages and your self-employment income was more than $125,000 if married (Box 3, 4, or 5 on page 1 of Form 1040NR), or $200,000 if single or qualifying widow(er) (Box 1, 2, or 6 on page 1 of Form 1040NR). Efile tax return for free    See Form 8959, Additional Medicare Tax, and the Instructions for Form 8959 to determine whether you are required to pay Additional Medicare Tax. Efile tax return for free For more information on Additional Medicare Tax, go to IRS. Efile tax return for free gov and enter “Additional Medicare Tax” in the search box. Efile tax return for free   Self-employed individuals may also be required to pay Additional Medicare Tax. Efile tax return for free See Self-Employment Tax , later. Efile tax return for free Students and Exchange Visitors Generally, services performed by you as a nonresident alien temporarily in the United States as a nonimmigrant under subparagraph (F), (J), (M), or (Q) of section 101(a)(15) of the Immigration and Nationality Act are not covered under the social security program if the services are performed to carry out the purpose for which you were admitted to the United States. Efile tax return for free This means that there will be no withholding of social security or Medicare taxes from the pay you receive for these services. Efile tax return for free These types of services are very limited, and generally include only on-campus work, practical training, and economic hardship employment. Efile tax return for free Social security and Medicare taxes will be withheld from your pay for these services if you are considered a resident alien as discussed in chapter 1, even though your nonimmigrant classification (“F,” “J,” “M,” or “Q”) remains the same. Efile tax return for free Services performed by a spouse or minor child of nonimmigrant aliens with the classification of “F-2,” “J-2,” “M-2,” and “Q-3” are covered under social security. Efile tax return for free Nonresident Alien Students If you are a nonresident alien temporarily admitted to the United States as a student, you generally are not permitted to work for a wage or salary or to engage in business while you are in the United States. Efile tax return for free In some cases, a student admitted to the United States in “F-1,” “M-1,” or “J-1” status is granted permission to work. Efile tax return for free Social security and Medicare taxes are not withheld from pay for the work unless the student is considered a resident alien. Efile tax return for free Any student who is enrolled and regularly attending classes at a school may be exempt from social security and Medicare taxes on pay for services performed for that school. Efile tax return for free The U. Efile tax return for free S. Efile tax return for free Citizenship and Immigration Services (USCIS) permits on-campus work for students in “F-1” status if it does not displace a U. Efile tax return for free S. Efile tax return for free resident. Efile tax return for free On-campus work means work performed on the school's premises. Efile tax return for free On-campus work includes work performed at an off-campus location that is educationally affiliated with the school. Efile tax return for free On-campus work under the terms of a scholarship, fellowship, or assistantship is considered part of the academic program of a student taking a full course of study and is permitted by the USCIS. Efile tax return for free Social security and Medicare taxes are not withheld from pay for this work unless the student is considered a resident alien. Efile tax return for free If services performed by a nonresident alien student are not considered as performed to carry out the purpose for which the student was admitted to the United States, social security and Medicare taxes will be withheld from pay for the services unless the pay is exempt under the Internal Revenue Code. Efile tax return for free Exchange Visitors Exchange visitors are temporarily admitted to the United States under section 101(a)(15)(J) of the Immigration and Nationality Act. Efile tax return for free Social security and Medicare taxes are not withheld on pay for services of an exchange visitor who has been given permission to work and who possesses or obtains a letter of authorization from the sponsor unless the exchange visitor is considered a resident alien. Efile tax return for free If services performed by an exchange visitor are not considered as performed to carry out the purpose for which the visitor was admitted to the United States, social security and Medicare taxes are withheld from pay for the services unless the pay is exempt under the Internal Revenue Code. Efile tax return for free Nonresident aliens temporarily admitted to the United States as participants in international cultural exchange programs under section 101(a)(15)(Q) of the Immigration and Nationality Act may be exempt from social security and Medicare taxes. Efile tax return for free The employer must be the petitioner through whom the alien obtained the “Q” visa. Efile tax return for free Social security and Medicare taxes are not withheld from pay for this work unless the alien is considered a resident alien. Efile tax return for free Refund of Taxes Withheld in Error If social security or Medicare taxes were withheld in error from pay that is not subject to these taxes, contact the employer who withheld the taxes for a refund. Efile tax return for free If you are unable to get a full refund of the amount from your employer, file a claim for refund with the Internal Revenue Service on Form 843, Claim for Refund and Request for Abatement. Efile tax return for free Attach the following items to Form 843. Efile tax return for free A copy of your Form W-2 to prove the amount of social security and Medicare taxes withheld. Efile tax return for free A copy of your visa. Efile tax return for free Form I-94 (or other documentation showing your dates of arrival or departure). Efile tax return for free If you have an F-1 visa, documentation showing permission to work in the U. Efile tax return for free S. Efile tax return for free If you have a J-1 visa, documentation showing permission to work in the U. Efile tax return for free S. Efile tax return for free If you are engaged in optional practical training or employment due to severe economic necessity, documentation showing permission to work in the U. Efile tax return for free S. Efile tax return for free A statement from your employer indicating the amount of the reimbursement your employer provided and the amount of the credit or refund your employer claimed or you authorized your employer to claim. Efile tax return for free If you cannot obtain this statement from your employer, you must provide this information on your own statement and explain why you are not attaching a statement from your employer or on Form 8316 claiming your employer will not issue the refund. Efile tax return for free If you were exempt from social security and Medicare tax for only part of the year, pay statements showing the tax paid during the period you were exempt. Efile tax return for free File Form 843 (with attachments) with the Department of the Treasury, Internal Revenue Service Center, Ogden, UT 84201-0038. Efile tax return for free Do not use Form 843 to request a refund of Additional Medicare Tax. Efile tax return for free If Additional Medicare Tax was withheld from your pay in error, you can claim a credit for any withheld Additional Medicare Tax against the total tax liability shown on your tax return by filing Form 8959 with Form 1040 or 1040NR. Efile tax return for free If Additional Medicare Tax was withheld in error in a prior year for which you already filed Form 1040 or 1040NR, you must file Form 1040X, Amended U. Efile tax return for free S. Efile tax return for free Individual Income Tax Return, for the prior year in which the wages or compensation were originally received to recover the Additional Medicare Tax withheld in error. Efile tax return for free See the Instructions for Form 1040X. Efile tax return for free Agricultural Workers Agricultural workers temporarily admitted into the United States on H-2A visas are exempt from social security and Medicare taxes on compensation paid to them for services performed in connection with the H-2A visa. Efile tax return for free You can find more information about not having tax withheld at www. Efile tax return for free irs. Efile tax return for free gov/Individuals/International-Taxpayers/Foreign-Agricultural-Workers. Efile tax return for free Self-Employment Tax Self-employment tax is the social security and Medicare taxes for individuals who are self-employed. Efile tax return for free Nonresident aliens are not subject to self-employment tax unless an international social security agreement in effect determines that they are covered under the U. Efile tax return for free S. Efile tax return for free social security system. Efile tax return for free Residents of the U. Efile tax return for free S. Efile tax return for free Virgin Islands, Puerto Rico, Guam, the Commonwealth of the Northern Mariana Islands, or American Samoa are considered U. Efile tax return for free S. Efile tax return for free residents for this purpose and are subject to the self-employment tax. Efile tax return for free Resident aliens must pay self-employment tax under the same rules that apply to U. Efile tax return for free S. Efile tax return for free citizens. Efile tax return for free However, a resident alien employed by an international organization, a foreign government, or a wholly-owned instrumentality of a foreign government is not subject to the self-employment tax on income earned in the United States. Efile tax return for free Self-employment income you receive while you are a resident alien is subject to self-employment tax even if it was paid for services you performed as a nonresident alien. Efile tax return for free Example. Efile tax return for free Bill Jones is an author engaged in the business of writing books. Efile tax return for free Bill had several books published in a foreign country while he was a citizen and resident of that country. Efile tax return for free During 2013, Bill entered the United States as a resident alien. Efile tax return for free After becoming a U. Efile tax return for free S. Efile tax return for free resident, he continued to receive royalties from his foreign publisher. Efile tax return for free Bill reports his income and expenses on the cash basis (he reports income on his tax return when received and deducts expenses when paid). Efile tax return for free Bill's 2013 self-employment income includes the royalties received after he became a U. Efile tax return for free S. Efile tax return for free resident even though the books were published while he was a nonresident alien. Efile tax return for free This royalty income is subject to self-employment tax. Efile tax return for free Reporting self-employment tax. Efile tax return for free   Use Schedule SE (Form 1040) to report and figure your self-employment tax. Efile tax return for free Then enter the tax on Form 1040, line 56, or Form 1040NR, line 54. Efile tax return for free Attach Schedule SE to Form 1040 or Form 1040NR. Efile tax return for free Additional Medicare Tax. Efile tax return for free   Self-employed individuals must pay a 0. Efile tax return for free 9% Additional Medicare Tax on self-employment income that exceeds one of the following threshold amounts (based on your filing status): Married filing jointly — $250,000; Married filing separately — $125,000; Single, Head of household, or Qualifying widow(er) — $200,000. Efile tax return for free   If you have both wages and self-employment income, the threshold amount for applying the Additional Medicare Tax on the self-employment income is reduced (but not below zero) by the amount of wages subject to Additional Medicare Tax. Efile tax return for free A self-employment loss should not be considered for purposes of this tax   If you file Form 1040NR, you must pay Additional Medicare Tax if the total of your wages and your self-employment income was more than $125,000 if married (Box 3, 4, or 5 on page 1 of Form 1040NR), or $200,000 if single or qualifying widow(er) (Box 1, 2, or 6 on page 1 of Form 1040NR). Efile tax return for free   See Form 8959, Additional Medicare Tax, and the Instructions for Form 8959 to determine whether you are required to pay Additional Medicare Tax. Efile tax return for free For more information on Additional Medicare Tax, go to IRS. Efile tax return for free gov and enter “Additional Medicare Tax” in the search box. Efile tax return for free Deduction for employer-equivalent portion of self-employment tax. Efile tax return for free   If you must pay self-employment tax, you can deduct a portion of the self-employment tax paid in figuring your adjusted gross income. Efile tax return for free This deduction is figured on Schedule SE (Form 1040). Efile tax return for free Note. Efile tax return for free No portion of the Additional Medicare Tax is deductible for self-employment tax. Efile tax return for free More information. Efile tax return for free   Get Publication 334, Tax Guide for Small Business, for more information about self-employment tax. Efile tax return for free International Social Security Agreements The United States has entered into social security agreements with foreign countries to coordinate social security coverage and taxation of workers employed for part or all of their working careers in one of the countries. Efile tax return for free These agreements are commonly referred to as totalization agreements. Efile tax return for free Under these agreements, dual coverage and dual contributions (taxes) for the same work are eliminated. Efile tax return for free The agreements generally make sure that social security taxes (including self-employment tax) are paid only to one country. Efile tax return for free Agreements are in effect with the following countries. Efile tax return for free Australia. Efile tax return for free Austria. Efile tax return for free Belgium. Efile tax return for free Canada. Efile tax return for free Chile. Efile tax return for free Czech Republic. Efile tax return for free Denmark. Efile tax return for free Finland. Efile tax return for free France. Efile tax return for free Germany. Efile tax return for free Greece. Efile tax return for free Ireland. Efile tax return for free Italy. Efile tax return for free Japan. Efile tax return for free Korea, South. Efile tax return for free Luxembourg. Efile tax return for free The Netherlands. Efile tax return for free Norway. Efile tax return for free Poland. Efile tax return for free Portugal. Efile tax return for free Spain. Efile tax return for free Sweden. Efile tax return for free Switzerland. Efile tax return for free The United Kingdom. Efile tax return for free Agreements with other countries are expected to enter into force in the future. Efile tax return for free Employees. Efile tax return for free   Generally, under these agreements, you are subject to social security taxes only in the country where you are working. Efile tax return for free However, if you are temporarily sent to work for the same employer in the United States and your pay would normally be subject to social security taxes in both countries, most agreements provide that you remain covered only by the social security system of the country from which you were sent. Efile tax return for free You can get more information on any agreement by contacting the U. Efile tax return for free S. Efile tax return for free Social Security Administration at the address given later. Efile tax return for free If you have access to the Internet, you can get more information at www. Efile tax return for free socialsecurity. Efile tax return for free gov/international. Efile tax return for free   To establish that your pay is subject only to foreign social security taxes and is exempt from U. Efile tax return for free S. Efile tax return for free social security taxes (including the Medicare tax) under an agreement, you or your employer should request a certificate of coverage from the appropriate agency of the foreign country. Efile tax return for free This will usually be the same agency to which you or your employer pays your foreign social security taxes. Efile tax return for free The foreign agency will be able to tell you what information is needed for them to issue the certificate. Efile tax return for free Your employer should keep a copy of the certificate because it may be needed to show why you are exempt from U. Efile tax return for free S. Efile tax return for free social security taxes. Efile tax return for free Only wages paid on or after the effective date of the agreement can be exempt from U. Efile tax return for free S. Efile tax return for free social security taxes. Efile tax return for free    Some of the countries with which the United States has agreements will not issue certificates of coverage. Efile tax return for free In this case, either you or your employer should request a statement that your wages are not covered by the U. Efile tax return for free S. Efile tax return for free social security system. Efile tax return for free Request the statement from the following address. Efile tax return for free U. Efile tax return for free S. Efile tax return for free Social Security Administration Office of International Programs P. Efile tax return for free O. Efile tax return for free Box 17741 Baltimore, MD 21235-7741 Self-employed individuals. Efile tax return for free   Under most agreements, self-employed individuals are covered by the social security system of the country where they reside. Efile tax return for free However, under some agreements, you may be exempt from U. Efile tax return for free S. Efile tax return for free self-employment tax if you temporarily transfer your business activity to or from the United States. Efile tax return for free   If you believe that your self-employment income is subject only to U. Efile tax return for free S. Efile tax return for free self-employment tax and is exempt from foreign social security taxes, request a certificate of coverage from the U. Efile tax return for free S. Efile tax return for free Social Security Administration at the address given earlier. Efile tax return for free This certificate will establish your exemption from foreign social security taxes. Efile tax return for free   To establish that your self-employment income is subject only to foreign social security taxes and is exempt from U. Efile tax return for free S. Efile tax return for free self-employment tax, request a certificate of coverage from the appropriate agency of the foreign country. Efile tax return for free If the foreign country will not issue the certificate, you should request a statement that your income is not covered by the U. Efile tax return for free S. Efile tax return for free social security system. Efile tax return for free Request it from the U. Efile tax return for free S. Efile tax return for free Social Security Administration at the address given earlier. Efile tax return for free Attach a photocopy of either statement to Form 1040 each year you are exempt. Efile tax return for free Also print “Exempt, see attached statement” on the line for self-employment tax. Efile tax return for free Estimated Tax Form 1040-ES (NR) You may have income from which no U. Efile tax return for free S. Efile tax return for free income tax is withheld. Efile tax return for free Or the amount of tax withheld may be less than the income tax you estimate you will owe at the end of the year. Efile tax return for free If so, you may have to pay estimated tax. Efile tax return for free Generally, you must make estimated tax payments for 2014 if you expect to owe at least $1,000 in tax and you expect your withholding and certain refundable credits to be less than the smaller of: 90% of the tax to be shown on your 2014 income tax return, or 100% of the tax shown on your 2013 income tax return (if your 2013 return covered all 12 months of the year). Efile tax return for free If your adjusted gross income for 2013 was more than $150,000 ($75,000 if your filing status for 2014 is married filing separately), substitute 110% for 100% in (2) above if you are not a farmer or fisherman. Efile tax return for free Item (2) does not apply if you did not file a 2013 return. Efile tax return for free A nonresident alien should use Form 1040-ES (NR) to figure and pay estimated tax. Efile tax return for free If you pay by check, make it payable to the "United States Treasury. Efile tax return for free " How to estimate your tax for 2014. Efile tax return for free   If you filed a 2013 return on Form 1040NR or Form 1040NR-EZ and expect your income, number of exemptions, and total deductions for 2014 to be nearly the same, you should use your 2013 return as a guide to complete the Estimated Tax Worksheet in the Form 1040-ES (NR) instructions. Efile tax return for free If you did not file a return for 2013, or if your income, exemptions, deductions, or credits will be different for 2014, you must estimate these amounts. Efile tax return for free Figure your estimated tax liability using the Tax Rate Schedule in the 2014 Form 1040-ES (NR) instructions for your filing status. Efile tax return for free Note. Efile tax return for free If you expect to be a resident of Puerto Rico during the entire year, use Form 1040-ES or Formulario 1040-ES (PR). Efile tax return for free When to pay estimated tax. Efile tax return for free   Make your first estimated tax payment by the due date for filing the previous year's Form 1040NR or Form 1040NR-EZ. Efile tax return for free If you have wages subject to the same withholding rules that apply to U. Efile tax return for free S. Efile tax return for free citizens, you must file Form 1040NR or Form 1040NR-EZ and make your first estimated tax payment by April 15, 2014. Efile tax return for free If you do not have wages subject to withholding, file your income tax return and make your first estimated tax payment by June 16, 2014. Efile tax return for free   If your first estimated tax payment is due April 15, 2014, you can pay your estimated tax in full at that time or in four equal installments by the dates shown next. Efile tax return for free 1st installment April 15, 2014 2nd installment June 16, 2014 3rd installment Sept. Efile tax return for free 15, 2014 4th installment Jan. Efile tax return for free 15, 2015 If your first payment is not due until June 16, 2014, you can pay your estimated tax in full at that time or: ½ of your estimated tax by June 16, 2014, 1/4 of the tax by September 15, 2014, and 1/4 by January 15, 2015. Efile tax return for free    You do not have to make the payment due January 15, 2015, if you file your 2014 Form 1040NR or 1040NR-EZ by February 2, 2015, and pay the entire balance due with your return. Efile tax return for free Fiscal year. Efile tax return for free   If your return is not on a calendar year basis, your due dates are the 15th day of the 4th, 6th, and 9th months of your fiscal year, and the 1st month of the following fiscal year. Efile tax return for free If any date falls on a Saturday, Sunday, or legal holiday, use the next day that is not a Saturday, Sunday, or legal holiday. Efile tax return for free Changes in income, deductions, or exemptions. Efile tax return for free   Even if you are not required to make an estimated tax payment in April or June, your circumstances may change so that you will have to make estimated tax payments later. Efile tax return for free This can happen if you receive additional income or if any of your deductions are reduced or eliminated. Efile tax return for free If so, see the instructions for Form 1040-ES (NR) and Publication 505 for information on figuring your estimated tax. Efile tax return for free Amended estimated tax. Efile tax return for free   If, after you have made estimated tax payments, you find your estimated tax is substantially increased or decreased because of a change in your income or exemptions, you should adjust your remaining estimated tax payments. Efile tax return for free To do this, see the instructions for Form 1040-ES (NR) and Publication 505. Efile tax return for free Penalty for failure to pay estimated income tax. Efile tax return for free   You will be subject to a penalty for underpayment of installments of estimated tax except in certain situations. Efile tax return for free These situations are explained on Form 2210, Underpayment of Estimated Tax by Individuals, Estates, and Trusts. Efile tax return for free Prev  Up  Next   Home   More Online Publications