Filing Your Taxes Online is Fast, Easy and Secure.
Start now and receive your tax refund in as little as 7 days.

1. Get Answers

Your online questions are customized to your unique tax situation.

2. Maximize your Refund

Find tax credits for everything from school tuition to buying a hybri

3. E-File for FREE

E-file free with direct deposit to get your refund in as few as 7 days.

Filing your taxes with paper mail can be difficult and it could take weeks for your refund to arrive. IRS e-file is easy, fast and secure. There is no paperwork going to the IRS so tax refunds can be processed in as little as 7 days with direct deposit. As you prepare your taxes online, you can see your tax refund in real time.

FREE audit support and representation from an enrolled agent – NEW and only from H&R Block

Need 2010 Taxes

1040 AmendmentAmmend A Tax Return1040ez 2014 Forms1040eztaxformHow To Amend Tax Return TurbotaxWhere Can I File My State Taxes OnlineFree State Tax Program1040 Ez 2010Turbotax 1040ezEfile Tax Extension FreeFree Prior Year Tax Filing FreeFree File State Taxes OnlineWhere Do I Send My 1040xFree 1040ez 2013Tax Amendment Form 2013Filing Previous Years TaxesHr Block Free State TaxesHand R Block TaxesCan I Efile My 2012 Tax ReturnFree Tax FilingIncome Tax Preparation Fees2012 Tax ReturnsFiling 2010 Taxes Online FreeHttp Freefile Irs GovFree 1040ez Tax ReturnFree Taxes PreparationE File Amended 1040xHow To File An Ammended ReturnFree Income Tax Return2010 Taxes Cheap 1099g Form W 2Ez Tax Form 2013Tax Act Amended ReturnTax Form 1040ez 2011File 2011 Taxes In 2013 FreeFill Out 1040ez2012 State Taxes Online FreeFree Tax Filing For Low IncomeHow To File 2009 Taxes OnlineIrs 1040ez FormsFile A Free Tax Extension Online

Need 2010 Taxes

Need 2010 taxes Publication 502 - Main Content Table of Contents What Are Medical Expenses? What Expenses Can You Include This Year?Community property states. Need 2010 taxes 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. Need 2010 taxes These expenses include payments for legal medical services rendered by physicians, surgeons, dentists, and other medical practitioners. Need 2010 taxes They include the costs of equipment, supplies, and diagnostic devices needed for these purposes. Need 2010 taxes Medical care expenses must be primarily to alleviate or prevent a physical or mental defect or illness. Need 2010 taxes They do not include expenses that are merely beneficial to general health, such as vitamins or a vacation. Need 2010 taxes 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. Need 2010 taxes Medical expenses also include amounts paid for qualified long-term care services and limited amounts paid for any qualified long-term care insurance contract. Need 2010 taxes 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. Need 2010 taxes (But see Decedent under Whose Medical Expenses Can You Include, for an exception. Need 2010 taxes ) If you pay medical expenses by check, the day you mail or deliver the check generally is the date of payment. Need 2010 taxes 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. Need 2010 taxes 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. Need 2010 taxes 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. Need 2010 taxes S. Need 2010 taxes Individual Income Tax Return, for the year in which you overlooked the expense. Need 2010 taxes Do not claim the expense on this year's return. Need 2010 taxes 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. Need 2010 taxes You cannot include medical expenses that were paid by insurance companies or other sources. Need 2010 taxes This is true whether the payments were made directly to you, to the patient, or to the provider of the medical services. Need 2010 taxes Separate returns. Need 2010 taxes   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. Need 2010 taxes 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. Need 2010 taxes Community property states. Need 2010 taxes   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. Need 2010 taxes Generally, each of you should include half the expenses. Need 2010 taxes If medical expenses are paid out of the separate funds of one individual, only the individual who paid the medical expenses can include them. Need 2010 taxes If you live in a community property state and are not filing a joint return, see Publication 555, Community Property. Need 2010 taxes 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. Need 2010 taxes 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. Need 2010 taxes 5% of your AGI. Need 2010 taxes Example. Need 2010 taxes You are unmarried and were born after January 2, 1949, and your AGI is $40,000, 10% of which is $4,000. Need 2010 taxes You paid medical expenses of $2,500. Need 2010 taxes You cannot deduct any of your medical expenses because they are not more than 10% of your AGI. Need 2010 taxes 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. Need 2010 taxes There are different rules for decedents and for individuals who are the subject of multiple support agreements. Need 2010 taxes See Support claimed under a multiple support agreement , later under Qualifying Relative. Need 2010 taxes Spouse You can include medical expenses you paid for your spouse. Need 2010 taxes 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. Need 2010 taxes Example 1. Need 2010 taxes Mary received medical treatment before she married Bill. Need 2010 taxes Bill paid for the treatment after they married. Need 2010 taxes Bill can include these expenses in figuring his medical expense deduction even if Bill and Mary file separate returns. Need 2010 taxes If Mary had paid the expenses, Bill could not include Mary's expenses in his separate return. Need 2010 taxes Mary would include the amounts she paid during the year in her separate return. Need 2010 taxes If they filed a joint return, the medical expenses both paid during the year would be used to figure their medical expense deduction. Need 2010 taxes Example 2. Need 2010 taxes This year, John paid medical expenses for his wife Louise, who died last year. Need 2010 taxes John married Belle this year and they file a joint return. Need 2010 taxes 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. Need 2010 taxes Dependent You can include medical expenses you paid for your dependent. Need 2010 taxes 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. Need 2010 taxes A person generally qualifies as your dependent for purposes of the medical expense deduction if both of the following requirements are met. Need 2010 taxes The person was a qualifying child (defined later) or a qualifying relative (defined later), and The person was a U. Need 2010 taxes S. Need 2010 taxes citizen or national or a resident of the United States, Canada, or Mexico. Need 2010 taxes If your qualifying child was adopted, see Exception for adopted child , later. Need 2010 taxes 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. Need 2010 taxes Exception for adopted child. Need 2010 taxes   If you are a U. Need 2010 taxes S. Need 2010 taxes 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. Need 2010 taxes S. Need 2010 taxes citizen or national, or a resident of the United States, Canada, or Mexico. Need 2010 taxes 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. Need 2010 taxes Adopted child. Need 2010 taxes   A legally adopted child is treated as your own child. Need 2010 taxes This child includes a child lawfully placed with you for legal adoption. Need 2010 taxes   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. Need 2010 taxes   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. Need 2010 taxes   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. Need 2010 taxes    You may be able to take a credit for other expenses related to an adoption. Need 2010 taxes See the Instructions for Form 8839, Qualified Adoption Expenses, for more information. Need 2010 taxes Child of divorced or separated parents. Need 2010 taxes   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. Need 2010 taxes 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. Need 2010 taxes This does not apply if the child's exemption is being claimed under a multiple support agreement (discussed later). Need 2010 taxes 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. Need 2010 taxes 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. Need 2010 taxes Support claimed under a multiple support agreement. Need 2010 taxes   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. Need 2010 taxes 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. Need 2010 taxes   Any medical expenses paid by others who joined you in the agreement cannot be included as medical expenses by anyone. Need 2010 taxes However, you can include the entire unreimbursed amount you paid for medical expenses. Need 2010 taxes Example. Need 2010 taxes You and your three brothers each provide one-fourth of your mother's total support. Need 2010 taxes Under a multiple support agreement, you treat your mother as your dependent. Need 2010 taxes You paid all of her medical expenses. Need 2010 taxes Your brothers repaid you for three-fourths of these expenses. Need 2010 taxes In figuring your medical expense deduction, you can include only one-fourth of your mother's medical expenses. Need 2010 taxes Your brothers cannot include any part of the expenses. Need 2010 taxes 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. Need 2010 taxes 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. Need 2010 taxes This includes expenses for the decedent's spouse and dependents as well as for the decedent. Need 2010 taxes 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. Need 2010 taxes The expenses must be paid within the 1-year period beginning with the day after the date of death. Need 2010 taxes 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. Need 2010 taxes 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. Need 2010 taxes 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. Need 2010 taxes 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. Need 2010 taxes Example. Need 2010 taxes John properly filed his 2012 income tax return. Need 2010 taxes He died in 2013 with unpaid medical expenses of $1,500 from 2012 and $1,800 in 2013. Need 2010 taxes 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. Need 2010 taxes The $1,800 of medical expenses from 2013 can be included on the decedent's final return for 2013. Need 2010 taxes 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. Need 2010 taxes 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. Need 2010 taxes What Medical Expenses Are Includible? Following is a list of items that you can include in figuring your medical expense deduction. Need 2010 taxes The items are listed in alphabetical order. Need 2010 taxes This list does not include all possible medical expenses. Need 2010 taxes To determine if an expense not listed can be included in figuring your medical expense deduction, see What Are Medical Expenses , earlier. Need 2010 taxes Abortion You can include in medical expenses the amount you pay for a legal abortion. Need 2010 taxes Acupuncture You can include in medical expenses the amount you pay for acupuncture. Need 2010 taxes Alcoholism You can include in medical expenses amounts you pay for an inpatient's treatment at a therapeutic center for alcohol addiction. Need 2010 taxes This includes meals and lodging provided by the center during treatment. Need 2010 taxes 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. Need 2010 taxes Ambulance You can include in medical expenses amounts you pay for ambulance service. Need 2010 taxes Annual Physical Examination See Physical Examination , later. Need 2010 taxes Artificial Limb You can include in medical expenses the amount you pay for an artificial limb. Need 2010 taxes Artificial Teeth You can include in medical expenses the amount you pay for artificial teeth. Need 2010 taxes Bandages You can include in medical expenses the cost of medical supplies such as bandages. Need 2010 taxes Birth Control Pills You can include in medical expenses the amount you pay for birth control pills prescribed by a doctor. Need 2010 taxes Body Scan You can include in medical expenses the cost of an electronic body scan. Need 2010 taxes 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. Need 2010 taxes Breast Pumps and Supplies You can include in medical expenses the cost of breast pumps and supplies that assist lactation. Need 2010 taxes 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. Need 2010 taxes See Cosmetic Surgery , later. Need 2010 taxes 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. Need 2010 taxes The cost of permanent improvements that increase the value of your property may be partly included as a medical expense. Need 2010 taxes The cost of the improvement is reduced by the increase in the value of your property. Need 2010 taxes The difference is a medical expense. Need 2010 taxes If the value of your property is not increased by the improvement, the entire cost is included as a medical expense. Need 2010 taxes 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. Need 2010 taxes These improvements include, but are not limited to, the following items. Need 2010 taxes Constructing entrance or exit ramps for your home. Need 2010 taxes Widening doorways at entrances or exits to your home. Need 2010 taxes Widening or otherwise modifying hallways and interior doorways. Need 2010 taxes Installing railings, support bars, or other modifications to bathrooms. Need 2010 taxes Lowering or modifying kitchen cabinets and equipment. Need 2010 taxes Moving or modifying electrical outlets and fixtures. Need 2010 taxes Installing porch lifts and other forms of lifts (but elevators generally add value to the house). Need 2010 taxes Modifying fire alarms, smoke detectors, and other warning systems. Need 2010 taxes Modifying stairways. Need 2010 taxes Adding handrails or grab bars anywhere (whether or not in bathrooms). Need 2010 taxes Modifying hardware on doors. Need 2010 taxes Modifying areas in front of entrance and exit doorways. Need 2010 taxes Grading the ground to provide access to the residence. Need 2010 taxes Only reasonable costs to accommodate a home to a disabled condition are considered medical care. Need 2010 taxes Additional costs for personal motives, such as for architectural or aesthetic reasons, are not medical expenses. Need 2010 taxes Capital expense worksheet. Need 2010 taxes   Use Worksheet A to figure the amount of your capital expense to include in your medical expenses. Need 2010 taxes Worksheet A. Need 2010 taxes Capital Expense Worksheet Instructions: Use this worksheet to figure the amount, if any, of your medical expenses due to a home improvement. Need 2010 taxes 1. Need 2010 taxes Enter the amount you paid for the home improvement 1. Need 2010 taxes   2. Need 2010 taxes Enter the value of your home immediately after the improvement 2. Need 2010 taxes       3. Need 2010 taxes Enter the value of your home immediately before the improvement 3. Need 2010 taxes       4. Need 2010 taxes Subtract line 3 from line 2. Need 2010 taxes This is the increase in the value of your home due to the improvement 4. Need 2010 taxes     • If line 4 is more than or equal to line 1, you have no medical expenses due to the home improvement; stop here. Need 2010 taxes       • If line 4 is less than line 1, go to line 5. Need 2010 taxes     5. Need 2010 taxes Subtract line 4 from line 1. Need 2010 taxes These are your medical expenses due to the home improvement 5. Need 2010 taxes   Operation and upkeep. Need 2010 taxes   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. Need 2010 taxes This rule applies even if none or only part of the original cost of the capital asset qualified as a medical care expense. Need 2010 taxes Improvements to property rented by a person with a disability. Need 2010 taxes   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. Need 2010 taxes Example. Need 2010 taxes John has arthritis and a heart condition. Need 2010 taxes He cannot climb stairs or get into a bathtub. Need 2010 taxes On his doctor's advice, he installs a bathroom with a shower stall on the first floor of his two-story rented house. Need 2010 taxes The landlord did not pay any of the cost of buying and installing the special plumbing and did not lower the rent. Need 2010 taxes John can include in medical expenses the entire amount he paid. Need 2010 taxes 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. Need 2010 taxes Special design. Need 2010 taxes   You can include in medical expenses the difference between the cost of a regular car and a car specially designed to hold a wheelchair. Need 2010 taxes Cost of operation. Need 2010 taxes   The includible costs of using a car for medical reasons are explained under Transportation , later. Need 2010 taxes Chiropractor You can include in medical expenses fees you pay to a chiropractor for medical care. Need 2010 taxes Christian Science Practitioner You can include in medical expenses fees you pay to Christian Science practitioners for medical care. Need 2010 taxes Contact Lenses You can include in medical expenses amounts you pay for contact lenses needed for medical reasons. Need 2010 taxes You can also include the cost of equipment and materials required for using contact lenses, such as saline solution and enzyme cleaner. Need 2010 taxes See Eyeglasses and Eye Surgery , later. Need 2010 taxes Crutches You can include in medical expenses the amount you pay to buy or rent crutches. Need 2010 taxes Dental Treatment You can include in medical expenses the amounts you pay for the prevention and alleviation of dental disease. Need 2010 taxes 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. Need 2010 taxes Treatment to alleviate dental disease include services of a dentist for procedures such as X-rays, fillings, braces, extractions, dentures, and other dental ailments. Need 2010 taxes But see Teeth Whitening under What Expenses Are Not Includible, later. Need 2010 taxes Diagnostic Devices You can include in medical expenses the cost of devices used in diagnosing and treating illness and disease. Need 2010 taxes Example. Need 2010 taxes You have diabetes and use a blood sugar test kit to monitor your blood sugar level. Need 2010 taxes You can include the cost of the blood sugar test kit in your medical expenses. Need 2010 taxes 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. Need 2010 taxes (See Publication 503, Child and Dependent Care Expenses. Need 2010 taxes ) 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. Need 2010 taxes Drug Addiction You can include in medical expenses amounts you pay for an inpatient's treatment at a therapeutic center for drug addiction. Need 2010 taxes This includes meals and lodging at the center during treatment. Need 2010 taxes Drugs See Medicines , later. Need 2010 taxes Eye Exam You can include in medical expenses the amount you pay for eye examinations. Need 2010 taxes Eyeglasses You can include in medical expenses amounts you pay for eyeglasses and contact lenses needed for medical reasons. Need 2010 taxes See Contact Lenses , earlier, for more information. Need 2010 taxes 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. Need 2010 taxes Fertility Enhancement You can include in medical expenses the cost of the following procedures to overcome an inability to have children. Need 2010 taxes Procedures such as in vitro fertilization (including temporary storage of eggs or sperm). Need 2010 taxes Surgery, including an operation to reverse prior surgery that prevented the person operated on from having children. Need 2010 taxes Founder's Fee See Lifetime Care—Advance Payments , later. Need 2010 taxes 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. Need 2010 taxes 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. Need 2010 taxes 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. Need 2010 taxes 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. Need 2010 taxes These amounts are treated as medical insurance premiums. Need 2010 taxes See Insurance Premiums , later. Need 2010 taxes Hearing Aids You can include in medical expenses the cost of a hearing aid and batteries, repairs, and maintenance needed to operate it. Need 2010 taxes Home Care See Nursing Services , later. Need 2010 taxes Home Improvements See Capital Expenses , earlier. Need 2010 taxes 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. Need 2010 taxes This includes amounts paid for meals and lodging. Need 2010 taxes Also see Lodging , later. Need 2010 taxes Insurance Premiums You can include in medical expenses insurance premiums you pay for policies that cover medical care. Need 2010 taxes 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). Need 2010 taxes See Qualified Long-Term Care Insurance Contracts under Long-Term Care, later. Need 2010 taxes 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. Need 2010 taxes The cost of the medical part must be separately stated in the insurance contract or given to you in a separate statement. Need 2010 taxes Health coverage tax credit. Need 2010 taxes   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. Need 2010 taxes 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. Need 2010 taxes S. Need 2010 taxes Treasury–HCTC,” or Any health coverage tax credit advance payments shown on Form 1099-H, Health Coverage Tax Credit (HCTC) Advance Payments. Need 2010 taxes 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. Need 2010 taxes 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. Need 2010 taxes Example. Need 2010 taxes You are a federal employee participating in the premium conversion plan of the Federal Employee Health Benefits (FEHB) program. Need 2010 taxes Your share of the FEHB premium is paid by making a pre-tax reduction in your salary. Need 2010 taxes 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. Need 2010 taxes Long-term care services. Need 2010 taxes   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. Need 2010 taxes This amount will be reported as wages on your Form W-2. Need 2010 taxes Retired public safety officers. Need 2010 taxes   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. Need 2010 taxes This applies only to distributions that would otherwise be included in income. Need 2010 taxes Health reimbursement arrangement (HRA). Need 2010 taxes   If you have medical expenses that are reimbursed by a health reimbursement arrangement, you cannot include those expenses in your medical expenses. Need 2010 taxes This is because an HRA is funded solely by the employer. Need 2010 taxes 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. Need 2010 taxes The payroll tax paid for Medicare A is not a medical expense. Need 2010 taxes 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. Need 2010 taxes In this situation you can include the premiums you paid for Medicare A as a medical expense. Need 2010 taxes Medicare B Medicare B is a supplemental medical insurance. Need 2010 taxes Premiums you pay for Medicare B are a medical expense. Need 2010 taxes Check the information you received from the Social Security Administration to find out your premium. Need 2010 taxes Medicare D Medicare D is a voluntary prescription drug insurance program for persons with Medicare A or B. Need 2010 taxes You can include as a medical expense premiums you pay for Medicare D. Need 2010 taxes 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). Need 2010 taxes 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. Need 2010 taxes 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. Need 2010 taxes You can include this cost of continuing participation in the health plan as a medical expense. Need 2010 taxes 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. Need 2010 taxes You cannot include this cost of continuing participation in that health plan as a medical expense. Need 2010 taxes 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. Need 2010 taxes , 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. Need 2010 taxes Taxes imposed by any governmental unit, such as Medicare taxes, are not insurance premiums. Need 2010 taxes Coverage for nondependents. Need 2010 taxes   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. Need 2010 taxes 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. Need 2010 taxes  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. Need 2010 taxes 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. Need 2010 taxes Laboratory Fees You can include in medical expenses the amounts you pay for laboratory fees that are part of medical care. Need 2010 taxes Lactation Expenses See Breast Pumps and Supplies , earlier. Need 2010 taxes 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. Need 2010 taxes These surfaces must be in poor repair (peeling or cracking) or within the child's reach. Need 2010 taxes The cost of repainting the scraped area is not a medical expense. Need 2010 taxes If, instead of removing the paint, you cover the area with wallboard or paneling, treat these items as capital expenses. Need 2010 taxes See Capital Expenses , earlier. Need 2010 taxes Do not include the cost of painting the wallboard as a medical expense. Need 2010 taxes Learning Disability See Special Education , later. Need 2010 taxes Legal Fees You can include in medical expenses legal fees you paid that are necessary to authorize treatment for mental illness. Need 2010 taxes 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. Need 2010 taxes 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. Need 2010 taxes The part of the payment you include is the amount properly allocable to medical care. Need 2010 taxes 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. Need 2010 taxes You can use a statement from the retirement home to prove the amount properly allocable to medical care. Need 2010 taxes The statement must be based either on the home's prior experience or on information from a comparable home. Need 2010 taxes Dependents with disabilities. Need 2010 taxes   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. Need 2010 taxes The payments must be a condition for the institution's future acceptance of your child and must not be refundable. Need 2010 taxes Payments for future medical care. Need 2010 taxes   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. Need 2010 taxes This rule does not apply in situations where the future care is purchased in connection with obtaining lifetime care of the type described earlier. Need 2010 taxes 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. Need 2010 taxes See Nursing Home , later. Need 2010 taxes You may be able to include in medical expenses the cost of lodging not provided in a hospital or similar institution. Need 2010 taxes You can include the cost of such lodging while away from home if all of the following requirements are met. Need 2010 taxes The lodging is primarily for and essential to medical care. Need 2010 taxes 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. Need 2010 taxes The lodging is not lavish or extravagant under the circumstances. Need 2010 taxes There is no significant element of personal pleasure, recreation, or vacation in the travel away from home. Need 2010 taxes The amount you include in medical expenses for lodging cannot be more than $50 for each night for each person. Need 2010 taxes You can include lodging for a person traveling with the person receiving the medical care. Need 2010 taxes 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. Need 2010 taxes Meals are not included. Need 2010 taxes 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. Need 2010 taxes 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. Need 2010 taxes 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. Need 2010 taxes Chronically ill individual. Need 2010 taxes   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. Need 2010 taxes 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. Need 2010 taxes Activities of daily living are eating, toileting, transferring, bathing, dressing, and continence. Need 2010 taxes He or she requires substantial supervision to be protected from threats to health and safety due to severe cognitive impairment. Need 2010 taxes Maintenance and personal care services. Need 2010 taxes    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). Need 2010 taxes 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. Need 2010 taxes 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. Need 2010 taxes The amount of qualified long-term care premiums you can include is limited. Need 2010 taxes You can include the following as medical expenses on Schedule A (Form 1040). Need 2010 taxes Qualified long-term care premiums up to the following amounts. Need 2010 taxes Age 40 or under – $360. Need 2010 taxes Age 41 to 50 – $680. Need 2010 taxes Age 51 to 60 – $1,360. Need 2010 taxes Age 61 to 70 – $3,640. Need 2010 taxes Age 71 or over – $4,550. Need 2010 taxes Unreimbursed expenses for qualified long-term care services. Need 2010 taxes Note. Need 2010 taxes The limit on premiums is for each person. Need 2010 taxes 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. Need 2010 taxes 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. Need 2010 taxes You cannot include in medical expenses the cost of meals that are not part of inpatient care. Need 2010 taxes Also see Weight-Loss Program and Nutritional Supplements , later. Need 2010 taxes 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. Need 2010 taxes The costs of the medical conference must be primarily for and necessary to the medical care of you, your spouse, or your dependent. Need 2010 taxes The majority of the time spent at the conference must be spent attending sessions on medical information. Need 2010 taxes The cost of meals and lodging while attending the conference is not deductible as a medical expense. Need 2010 taxes 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. Need 2010 taxes Medicines You can include in medical expenses amounts you pay for prescribed medicines and drugs. Need 2010 taxes A prescribed drug is one that requires a prescription by a doctor for its use by an individual. Need 2010 taxes You can also include amounts you pay for insulin. Need 2010 taxes Except for insulin, you cannot include in medical expenses amounts you pay for a drug that is not prescribed. Need 2010 taxes Imported medicines and drugs. Need 2010 taxes   If you imported medicines or drugs from other countries, see Medicines and Drugs From Other Countries , under What Expenses Are Not Includible, later. Need 2010 taxes 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. Need 2010 taxes This includes the cost of meals and lodging in the home if a principal reason for being there is to get medical care. Need 2010 taxes Do not include the cost of meals and lodging if the reason for being in the home is personal. Need 2010 taxes You can, however, include in medical expenses the part of the cost that is for medical or nursing care. Need 2010 taxes Nursing Services You can include in medical expenses wages and other amounts you pay for nursing services. Need 2010 taxes The services need not be performed by a nurse as long as the services are of a kind generally performed by a nurse. Need 2010 taxes 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. Need 2010 taxes These services can be provided in your home or another care facility. Need 2010 taxes Generally, only the amount spent for nursing services is a medical expense. Need 2010 taxes 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. Need 2010 taxes For example, because of your medical condition you pay a visiting nurse $300 per week for medical and household services. Need 2010 taxes She spends 10% of her time doing household services such as washing dishes and laundry. Need 2010 taxes You can include only $270 per week as medical expenses. Need 2010 taxes The $30 (10% × $300) allocated to household services cannot be included. Need 2010 taxes However, certain maintenance or personal care services provided for qualified long-term care can be included in medical expenses. Need 2010 taxes See Maintenance and personal care services under Long-Term Care, earlier. Need 2010 taxes 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. Need 2010 taxes See Publication 503. Need 2010 taxes You can also include in medical expenses part of the amount you pay for that attendant's meals. Need 2010 taxes Divide the food expense among the household members to find the cost of the attendant's food. Need 2010 taxes Then divide that cost in the same manner as in the preceding paragraph. Need 2010 taxes If you had to pay additional amounts for household upkeep because of the attendant, you can include the extra amounts with your medical expenses. Need 2010 taxes This includes extra rent or utilities you pay because you moved to a larger apartment to provide space for the attendant. Need 2010 taxes Employment taxes. Need 2010 taxes   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. Need 2010 taxes 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. Need 2010 taxes For information on employment tax responsibilities of household employers, see Publication 926, Household Employer's Tax Guide. Need 2010 taxes Operations You can include in medical expenses amounts you pay for legal operations that are not for unnecessary cosmetic surgery. Need 2010 taxes See Cosmetic Surgery under What Expenses Are Not Includible, later. Need 2010 taxes Optometrist See Eyeglasses , earlier. Need 2010 taxes Organ Donors See Transplants , later. Need 2010 taxes Osteopath You can include in medical expenses amounts you pay to an osteopath for medical care. Need 2010 taxes Oxygen You can include in medical expenses amounts you pay for oxygen and oxygen equipment to relieve breathing problems caused by a medical condition. Need 2010 taxes Physical Examination You can include in medical expenses the amount you pay for an annual physical examination and diagnostic tests by a physician. Need 2010 taxes You do not have to be ill at the time of the examination. Need 2010 taxes 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. Need 2010 taxes Prosthesis See Artificial Limb and Breast Reconstruction Surgery , earlier. Need 2010 taxes Psychiatric Care You can include in medical expenses amounts you pay for psychiatric care. Need 2010 taxes This includes the cost of supporting a mentally ill dependent at a specially equipped medical center where the dependent receives medical care. Need 2010 taxes See Psychoanalysis, next, and Transportation , later. Need 2010 taxes Psychoanalysis You can include in medical expenses payments for psychoanalysis. Need 2010 taxes However, you cannot include payments for psychoanalysis that is part of required training to be a psychoanalyst. Need 2010 taxes Psychologist You can include in medical expenses amounts you pay to a psychologist for medical care. Need 2010 taxes 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. Need 2010 taxes 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. Need 2010 taxes A doctor must recommend that the child attend the school. Need 2010 taxes 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. Need 2010 taxes 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. Need 2010 taxes 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). Need 2010 taxes Also see Vasectomy , later. Need 2010 taxes Stop-Smoking Programs You can include in medical expenses amounts you pay for a program to stop smoking. Need 2010 taxes 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. Need 2010 taxes Surgery See Operations , earlier. Need 2010 taxes 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. Need 2010 taxes This includes teletypewriter (TTY) and telecommunications device for the deaf (TDD) equipment. Need 2010 taxes You can also include the cost of repairing the equipment. Need 2010 taxes 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. Need 2010 taxes This may be the cost of an adapter that attaches to a regular set. Need 2010 taxes 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. Need 2010 taxes Therapy You can include in medical expenses amounts you pay for therapy received as medical treatment. Need 2010 taxes 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. Need 2010 taxes This includes transportation. Need 2010 taxes You can include any expenses you pay for the medical care of a donor in connection with the donating of an organ. Need 2010 taxes This includes transportation. Need 2010 taxes Transportation You can include in medical expenses amounts paid for transportation primarily for, and essential to, medical care. Need 2010 taxes 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. Need 2010 taxes Car expenses. Need 2010 taxes   You can include out-of-pocket expenses, such as the cost of gas and oil, when you use a car for medical reasons. Need 2010 taxes You cannot include depreciation, insurance, general repair, or maintenance expenses. Need 2010 taxes   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. Need 2010 taxes    You can also include parking fees and tolls. Need 2010 taxes You can add these fees and tolls to your medical expenses whether you use actual expenses or the standard mileage rate. Need 2010 taxes Example. Need 2010 taxes In 2013, Bill Jones drove 2,800 miles for medical reasons. Need 2010 taxes He spent $500 for gas, $30 for oil, and $100 for tolls and parking. Need 2010 taxes He wants to figure the amount he can include in medical expenses both ways to see which gives him the greater deduction. Need 2010 taxes He figures the actual expenses first. Need 2010 taxes He adds the $500 for gas, the $30 for oil, and the $100 for tolls and parking for a total of $630. Need 2010 taxes He then figures the standard mileage amount. Need 2010 taxes He multiplies 2,800 miles by 24 cents a mile for a total of $672. Need 2010 taxes He then adds the $100 tolls and parking for a total of $772. Need 2010 taxes 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. Need 2010 taxes Transportation expenses you cannot include. Need 2010 taxes    You cannot include in medical expenses the cost of transportation in the following situations. Need 2010 taxes Going to and from work, even if your condition requires an unusual means of transportation. Need 2010 taxes Travel for purely personal reasons to another city for an operation or other medical care. Need 2010 taxes Travel that is merely for the general improvement of one's health. Need 2010 taxes The costs of operating a specially equipped car for other than medical reasons. Need 2010 taxes 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. Need 2010 taxes You may be able to include up to $50 for each night for each person. Need 2010 taxes You can include lodging for a person traveling with the person receiving the medical care. Need 2010 taxes 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. Need 2010 taxes Meals are not included. Need 2010 taxes See Lodging , earlier. Need 2010 taxes 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. Need 2010 taxes However, see Medical Conferences , earlier. Need 2010 taxes Tuition Under special circumstances, you can include charges for tuition in medical expenses. Need 2010 taxes See Special Education , earlier. Need 2010 taxes 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. Need 2010 taxes Vasectomy You can include in medical expenses the amount you pay for a vasectomy. Need 2010 taxes Vision Correction Surgery See Eye Surgery , earlier. Need 2010 taxes 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). Need 2010 taxes This includes fees you pay for membership in a weight reduction group as well as fees for attendance at periodic meetings. Need 2010 taxes 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. Need 2010 taxes 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. Need 2010 taxes 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. Need 2010 taxes 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. Need 2010 taxes See also Weight-Loss Program under What Expenses Are Not Includible, later. Need 2010 taxes 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. Need 2010 taxes The cost of operating and maintaining the wheelchair is also a medical expense. Need 2010 taxes 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. Need 2010 taxes X-ray You can include in medical expenses amounts you pay for X-rays for medical reasons. Need 2010 taxes What Expenses Are Not Includible? Following is a list of some items that you cannot include in figuring your medical expense deduction. Need 2010 taxes The items are listed in alphabetical order. Need 2010 taxes 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. Need 2010 taxes Also, any expense allowed as a childcare credit cannot be treated as an expense paid for medical care. Need 2010 taxes Controlled Substances You cannot include in medical expenses amounts you pay for controlled substances (such as marijuana, laetrile, etc. Need 2010 taxes ), even if such substances are legalized by state law. Need 2010 taxes Such substances are not legal under federal law and cannot be included in medical expenses. Need 2010 taxes Cosmetic Surgery Generally, you cannot include in medical expenses the amount you pay for unnecessary cosmetic surgery. Need 2010 taxes 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. Need 2010 taxes You generally cannot include in medical expenses the amount you pay for procedures such as face lifts, hair transplants, hair removal (electrolysis), and liposuction. Need 2010 taxes 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. Need 2010 taxes Example. Need 2010 taxes An individual undergoes surgery that removes a breast as part of treatment for cancer. Need 2010 taxes She pays a surgeon to reconstruct the breast. Need 2010 taxes The surgery to reconstruct the breast corrects a deformity directly related to the disease. Need 2010 taxes The cost of the surgery is includible in her medical expenses. Need 2010 taxes Dancing Lessons You cannot include in medical expenses the cost of dancing lessons, swimming lessons, etc. Need 2010 taxes , even if they are recommended by a doctor, if they are only for the improvement of general health. Need 2010 taxes 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. Need 2010 taxes Electrolysis or Hair Removal See Cosmetic Surgery , earlier. Need 2010 taxes 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. Need 2010 taxes Funeral Expenses You cannot include in medical expenses amounts you pay for funerals. Need 2010 taxes 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. Need 2010 taxes 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. Need 2010 taxes Hair Transplant See Cosmetic Surgery , earlier. Need 2010 taxes 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. Need 2010 taxes You cannot include in medical expenses the cost of membership in any club organized for business, pleasure, recreation, or other social purpose. Need 2010 taxes 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. Need 2010 taxes For more information, see Health Coverage Tax Credit , later. Need 2010 taxes Health Savings Accounts You cannot include in medical expenses any payment or distribution for medical expenses out of a health savings account. Need 2010 taxes Contributions to health savings accounts are deducted separately. Need 2010 taxes See Publication 969. Need 2010 taxes Household Help You cannot include in medical expenses the cost of household help, even if such help is recommended by a doctor. Need 2010 taxes This is a personal expense that is not deductible. Need 2010 taxes However, you may be able to include certain expenses paid to a person providing nursing-type services. Need 2010 taxes For more information, see Nursing Services , earlier under What Medical Expenses Are Includible. Need 2010 taxes Also, certain maintenance or personal care services provided for qualified long-term care can be included in medical expenses. Need 2010 taxes For more information, see Long-Term Care , earlier under What Medical Expenses Are Includible. Need 2010 taxes 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. Need 2010 taxes Insurance Premiums See Insurance Premiums under What Medical Expenses Are Includible, earlier. Need 2010 taxes Maternity Clothes You cannot include in medical expenses amounts you pay for maternity clothes. Need 2010 taxes Medical Savings Account (MSA) You cannot include in medical expenses amounts you contribute to an Archer MSA. Need 2010 taxes You cannot include expenses you pay for with a tax-free distribution from your Archer MSA. Need 2010 taxes You also cannot use other funds equal to the amount of the distribution and include the expenses. Need 2010 taxes For more information on Archer MSAs, see Publication 969. Need 2010 taxes 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. Need 2010 taxes You can only include the cost of a drug that was imported legally. Need 2010 taxes For example, you can include the cost of a prescribed drug the Food and Drug Administration announces can be legally imported by individuals. Need 2010 taxes 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. Need 2010 taxes Nonprescription Drugs and Medicines Except for insulin, you cannot include in medical expenses amounts you pay for a drug that is not prescribed. Need 2010 taxes Example. Need 2010 taxes Your doctor recommends that you take aspirin. Need 2010 taxes Because aspirin is a drug that does not require a physician's prescription, you cannot include its cost in your medical expenses. Need 2010 taxes Nutritional Supplements You cannot include in medical expenses the cost of nutritional supplements, vitamins, herbal supplements, “natural medicines,” etc. Need 2010 taxes unless they are recommended by a medical practitioner as treatment for a specific medical condition diagnosed by a physician. Need 2010 taxes Otherwise, these items are taken to maintain your ordinary good health, and are not for medical care. Need 2010 taxes 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. Need 2010 taxes For example, the cost of a toothbrush and toothpaste is a nondeductible personal expense. Need 2010 taxes 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. Need 2010 taxes 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. Need 2010 taxes (See Braille Books and Magazines under What Medical Expenses Are Includible, earlier. Need 2010 taxes ) Swimming Lessons See Dancing Lessons , earlier. Need 2010 taxes Teeth Whitening You cannot include in medical expenses amounts paid to whiten teeth. Need 2010 taxes See Cosmetic Surgery , earlier. Need 2010 taxes 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. Need 2010 taxes 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. Need 2010 taxes 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). Need 2010 taxes 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. Need 2010 taxes Also, you cannot include membership dues in a gym, health club, or spa. Need 2010 taxes 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. Need 2010 taxes See Weight-Loss Program under What Medical Expenses Are Includible, earlier. Need 2010 taxes 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. Need 2010 taxes 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. Need 2010 taxes This includes payments from Medicare. Need 2010 taxes 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. Need 2010 taxes Example. Need 2010 taxes You have insurance policies that cover your hospital and doctors' bills but not your nursing bills. Need 2010 taxes The insurance you receive for the hospital and doctors' bills is more than their charges. Need 2010 taxes 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. Need 2010 taxes Health reimbursement arrange
Español

A-Z Index of Consumer Organizations

  • A
  • B
  • C
  • D
  • E
  • F
  • G
  • H
  • I
  • J
  • K
  • L
  • M
  • N
  • O
  • P
  • Q
  • R
  • S
  • T
  • U
  • V
  • W
  • X-Z

The Need 2010 Taxes

Need 2010 taxes 1. Need 2010 taxes   Tax Withholding for 2014 Table of Contents Introduction Useful Items - You may want to see: Salaries and WagesDetermining Amount of Tax Withheld Using Form W-4 Completing Form W-4 and Worksheets Getting the Right Amount of Tax Withheld Rules Your Employer Must Follow Exemption From Withholding Supplemental Wages Penalties Tips Taxable Fringe BenefitsSpecial rule. Need 2010 taxes Exceptions. Need 2010 taxes Sick Pay Pensions and AnnuitiesPeriodic Payments Nonperiodic Payments Eligible Rollover Distributions Choosing Not To Have Income Tax Withheld Gambling WinningsException. Need 2010 taxes Identical wagers. Need 2010 taxes Unemployment Compensation Federal Payments Backup WithholdingTaxpayer identification number. Need 2010 taxes Underreported interest or dividends. Need 2010 taxes Introduction This chapter discusses income tax withholding on: Salaries and wages, Tips, Taxable fringe benefits, Sick pay, Pensions and annuities, Gambling winnings, Unemployment compensation, and Certain federal payments. Need 2010 taxes This chapter explains in detail the rules for withholding tax from each of these types of income. Need 2010 taxes The discussion of salaries and wages includes an explanation of how to complete Form W-4. Need 2010 taxes This chapter also covers backup withholding on interest, dividends, and other payments. Need 2010 taxes Useful Items - You may want to see: Form (and Instructions) W-4 Employee's Withholding Allowance Certificate W-4P Withholding Certificate for Pension or Annuity Payments W-4S Request for Federal Income Tax Withholding From Sick Pay W-4V Voluntary Withholding Request See chapter 5 of this publication for information about getting these publications and forms. Need 2010 taxes Salaries and Wages Income tax is withheld from the pay of most employees. Need 2010 taxes Your pay includes your regular pay, bonuses, commissions, and vacation allowances. Need 2010 taxes It also includes reimbursements and other expense allowances paid under a nonaccountable plan. Need 2010 taxes See Supplemental Wages , later, for definitions of accountable and nonaccountable plans. Need 2010 taxes If your income is low enough that you will not have to pay income tax for the year, you may be exempt from withholding. Need 2010 taxes This is explained under Exemption From Withholding , later. Need 2010 taxes You can ask your employer to withhold income tax from noncash wages and other wages not subject to withholding. Need 2010 taxes If your employer does not agree to withhold tax, or if not enough is withheld, you may have to pay estimated tax, as discussed in chapter 2. Need 2010 taxes Military retirees. Need 2010 taxes   Military retirement pay is treated in the same manner as regular pay for income tax withholding purposes, even though it is treated as a pension or annuity for other tax purposes. Need 2010 taxes Household workers. Need 2010 taxes   If you are a household worker, you can ask your employer to withhold income tax from your pay. Need 2010 taxes A household worker is an employee who performs household work in a private home, local college club, or local fraternity or sorority chapter. Need 2010 taxes   Tax is withheld only if you want it withheld and your employer agrees to withhold it. Need 2010 taxes If you do not have enough income tax withheld, you may have to pay estimated tax, as discussed in chapter 2. Need 2010 taxes Farmworkers. Need 2010 taxes   Generally, income tax is withheld from your cash wages for work on a farm unless your employer both: Pays you cash wages of less than $150 during the year, and Has expenditures for agricultural labor totaling less than $2,500 during the year. Need 2010 taxes Differential wage payments. Need 2010 taxes   When employees are on leave from employment for military duty, some employers make up the difference between the military pay and civilian pay. Need 2010 taxes Payments to an employee who is on active duty for a period of more than 30 days will be subject to income tax withholding, but not subject to social security or Medicare taxes. Need 2010 taxes The wages and withholding will be reported on Form W-2, Wage and Tax Statement. Need 2010 taxes Determining Amount of Tax Withheld Using Form W-4 The amount of income tax your employer withholds from your regular pay depends on two things. Need 2010 taxes The amount you earn in each payroll period. Need 2010 taxes The information you give your employer on Form W-4. Need 2010 taxes Form W-4 includes four types of information that your employer will use to figure your withholding. Need 2010 taxes Whether to withhold at the single rate or at the lower married rate. Need 2010 taxes How many withholding allowances you claim (each allowance reduces the amount withheld). Need 2010 taxes Whether you want an additional amount withheld. Need 2010 taxes Whether you are claiming an exemption from withholding in 2014. Need 2010 taxes See Exemption From Withholding , later. Need 2010 taxes Note. Need 2010 taxes You must specify a filing status and a number of withholding allowances on Form W-4. Need 2010 taxes You cannot specify only a dollar amount of withholding. Need 2010 taxes New Job When you start a new job, you must fill out a Form W-4 and give it to your employer. Need 2010 taxes Your employer should have copies of the form. Need 2010 taxes If you need to change the information later, you must fill out a new form. Need 2010 taxes If you work only part of the year (for example, you start working after the beginning of the year), too much tax may be withheld. Need 2010 taxes You may be able to avoid overwithholding if your employer agrees to use the part-year method. Need 2010 taxes See Part-Year Method , later, for more information. Need 2010 taxes Employee also receiving pension income. Need 2010 taxes   If you receive pension or annuity income and begin a new job, you will need to file Form W-4 with your new employer. Need 2010 taxes However, you can choose to split your withholding allowances between your pension and job in any manner. Need 2010 taxes Changing Your Withholding During the year changes may occur to your marital status, exemptions, adjustments, deductions, or credits you expect to claim on your tax return. Need 2010 taxes When this happens, you may need to give your employer a new Form W-4 to change your withholding status or number of allowances. Need 2010 taxes If the changes reduce the number of allowances you are allowed to claim or changes your marital status from married to single, you must give your employer a new Form W-4 within 10 days. Need 2010 taxes See Marital Status (Line 3 of Form W-4) and Withholding Allowances (Line 5 of Form W-4) , later. Need 2010 taxes Generally, you can submit a new Form W-4 whenever you wish to change your withholding allowances for any other reason. Need 2010 taxes See Table 1-1 for examples of personal and financial changes you should consider. Need 2010 taxes Table 1-1. Need 2010 taxes Personal and Financial Changes Factor Examples Lifestyle change Marriage Divorce Birth or adoption of child Loss of an exemption Purchase of a new home Retirement Filing chapter 11 bankruptcy Wage income You or your spouse start or stop working, or start or stop a second job Change in the amount of taxable income not subject to withholding Interest income Dividends Capital gains Self-employment income IRA (including certain Roth  IRA) distributions Change in the amount of adjustments to income IRA deduction Student loan interest deduction Alimony expense Change in the amount of itemized deductions or tax credits Medical expenses Taxes Interest expense Gifts to charity Job expenses Dependent care expenses Education credit Child tax credit Earned income credit If you change the number of your withholding allowances, you can request that your employer withhold using the Cumulative Wage Method , explained later. Need 2010 taxes Checking Your Withholding After you have given your employer a Form W-4, you can check to see whether the amount of tax withheld from your pay is too much or too little. Need 2010 taxes If too much or too little tax is being withheld, you should give your employer a new Form W-4 to change your withholding. Need 2010 taxes You can get a blank Form W-4 from your employer or print the form from IRS. Need 2010 taxes gov. Need 2010 taxes You should try to have your withholding match your actual tax liability. Need 2010 taxes If not enough tax is withheld, you will owe tax at the end of the year and may have to pay interest and a penalty. Need 2010 taxes If too much tax is withheld, you will lose the use of that money until you get your refund. Need 2010 taxes Always check your withholding if there are personal or financial changes in your life or changes in the law that might change your tax liability. Need 2010 taxes See Table 1-1 for examples. Need 2010 taxes Note. Need 2010 taxes You cannot give your employer a payment to cover federal income tax withholding on salaries and wages for past pay periods or a payment for estimated tax. Need 2010 taxes When Should You Check Your Withholding? The earlier in the year you check your withholding, the easier it is to get the right amount of tax withheld. Need 2010 taxes You should check your withholding when any of the following situations occur. Need 2010 taxes You receive a paycheck stub (statement) covering a full pay period in 2014, showing tax withheld based on 2014 tax rates. Need 2010 taxes You prepare your 2013 tax return and get a: Big refund, or Balance due that is: More than you can comfortably pay, or Subject to a penalty. Need 2010 taxes There are changes in your life or financial situation that affect your tax liability. Need 2010 taxes See Table 1-1. Need 2010 taxes There are changes in the tax law that affect your tax liability. Need 2010 taxes How Do You Check Your Withholding? You can use the worksheets and tables in this publication to see if you are having the right amount of tax withheld. Need 2010 taxes You can also use the IRS Withholding calculator at www. Need 2010 taxes irs. Need 2010 taxes gov/individuals. Need 2010 taxes If you use the worksheets and tables in this publication, follow these steps. Need 2010 taxes Fill out Worksheet 1-5 to project your total federal income tax liability for 2014. Need 2010 taxes Fill out Worksheet 1-7 to project your total federal withholding for 2014 and compare that with your projected tax liability from Worksheet 1-5. Need 2010 taxes If you are not having enough tax withheld, line 6 of Worksheet 1-7 will show you how much more to have withheld each payday. Need 2010 taxes For ways to increase the amount of tax withheld, see How Do You Increase Your Withholding? If line 5 of Worksheet 1-7 shows that you are having more tax withheld than necessary, see How Do You Decrease Your Withholding, for ways to decrease the amount of tax you have withheld each payday. Need 2010 taxes How Do You Increase Your Withholding? There are two ways to increase your withholding. Need 2010 taxes You can: Decrease the number of allowances you claim on Form W-4, or Enter an additional amount that you want withheld from each paycheck on Form W-4. Need 2010 taxes Requesting an additional amount withheld. Need 2010 taxes   You can request that an additional amount be withheld from each paycheck by following these steps. Need 2010 taxes Complete Worksheets 1-5 and 1-7. Need 2010 taxes Complete a new Form W-4 if the amount on Worksheet 1-7, line 5: Is more than you want to pay with your tax return or in estimated tax payments throughout the year, or Would cause you to pay a penalty when you file your tax return for 2014. Need 2010 taxes Enter on your new Form W-4, the same number of withholding allowances your employer now uses for your withholding. Need 2010 taxes This is the number of allowances you entered on the last Form W-4 you gave your employer. Need 2010 taxes Enter on your new Form W-4, the amount from Worksheet 1-7, line 6. Need 2010 taxes Give your newly completed Form W-4 to your employer. Need 2010 taxes   If you have this additional amount withheld from your pay each payday, you should avoid owing a large amount at the end of the year. Need 2010 taxes Example. Need 2010 taxes Early in 2014, Steve Miller used Worksheets 1-5, 1-6, and 1-7 to project his 2014 tax liability ($4,316) and his withholding for the year ($3,516). Need 2010 taxes Steve's tax will be underwithheld by $800 ($4,316 − $3,516). Need 2010 taxes His choices are to pay this amount when he files his 2014 tax return, make estimated tax payments, or increase his withholding now. Need 2010 taxes Steve gets a new Form W-4 from his employer, who tells him that there are 50 paydays remaining in 2014. Need 2010 taxes Steve completes the new Form W-4 as before, entering the same number of withholding allowances as before, but, in addition, entering $16 ($800 ÷ 50) on the form as the additional amount to be withheld from his pay each payday. Need 2010 taxes He gives the completed form to his employer. Need 2010 taxes What if I have more than one job or my spouse also has a job?   You are more likely to need to increase your withholding if you have more than one job or if you are married filing jointly and your spouse also works. Need 2010 taxes If this is the case, you can increase your withholding for one or more of the jobs. Need 2010 taxes   You can apply the amount on Worksheet 1-7, line 5, to only one job or divide it between the jobs any way you wish. Need 2010 taxes For each job, determine the extra amount that you want to apply to that job and divide that amount by the number of paydays remaining in 2014 for that job. Need 2010 taxes This will give you the additional amount to enter on the Form W-4 you will file for that job. Need 2010 taxes You need to give your employer a new Form W-4 for each job for which you are changing your withholding. Need 2010 taxes Example. Need 2010 taxes Meg Green works in a store and earns $46,000 a year. Need 2010 taxes Her husband, John, works full-time in manufacturing and earns $68,000 a year. Need 2010 taxes In 2014, they will also have $184 in taxable interest and $1,000 of other taxable income. Need 2010 taxes They expect to file a joint income tax return. Need 2010 taxes Meg and John complete Worksheets 1-5, 1-6, and 1-7. Need 2010 taxes Line 5 of Worksheet 1-7 shows that they will owe an additional $4,459 after subtracting their withholding for the year. Need 2010 taxes They can divide the $4,459 any way they want. Need 2010 taxes They can enter an additional amount on either of their Forms W-4, or divide it between them. Need 2010 taxes They decide to have the additional amount withheld from John's wages, so they enter $91 ($4,459 ÷ 49 remaining paydays) on his Form W-4. Need 2010 taxes Both claim the same number of allowances as before. Need 2010 taxes How Do You Decrease Your Withholding? If your completed Worksheets 1-5 and 1-7 show that you may have more tax withheld than your projected tax liability for 2014, you may be able to decrease your withholding. Need 2010 taxes There are two ways to do this. Need 2010 taxes You can: Decrease any additional amount you are having withheld, or Increase the number of allowances you claim on Form W-4. Need 2010 taxes You can claim only the number of allowances to which you are entitled. Need 2010 taxes To see if you can decrease your withholding by increasing your allowances, see the Form W-4 instructions and the rest of this publication. Need 2010 taxes Increasing the number of allowances. Need 2010 taxes   Figure and increase the number of withholding allowances you can claim as follows. Need 2010 taxes On a new Form W-4, complete the Personal Allowances Worksheet. Need 2010 taxes If you plan to itemize deductions, claim adjustments to income, or claim tax credits, complete a new Deductions and Adjustments Worksheet. Need 2010 taxes If you plan to claim tax credits, see Converting Credits to Withholding Allowances, later. Need 2010 taxes If you meet the criteria on line H of the Form W-4 Personal Allowances Worksheet, complete a new Two-Earners/Multiple Jobs Worksheet. Need 2010 taxes If the number of allowances you can claim on Form W-4, is different from the number you already are claiming, give the newly completed Form W-4 to your employer. Need 2010 taxes Converting Credits to Withholding Allowances Table 1-2 , later, shows many of the tax credits you may be able to use to decrease your withholding. Need 2010 taxes The Form W-4 Personal Allowances Worksheet provides only rough adjustments for the child and dependent care credit and the child tax credit. Need 2010 taxes Complete Worksheet 1-8 to figure these credits more accurately and also take other credits into account. Need 2010 taxes Include the amount from line 12 of Worksheet 1-8 in the total on line 5 of the Deductions and Adjustments Worksheet. Need 2010 taxes Then complete the Deductions and Adjustments Worksheet and the rest of Form W-4. Need 2010 taxes If you take the child and dependent care credit into account on Worksheet 1-8, enter -0- on line F of the Personal Allowances Worksheet. Need 2010 taxes If you take the child tax credit into account on Worksheet 1-8, enter -0- on line G of the Personal Allowances Worksheet. Need 2010 taxes Example. Need 2010 taxes Brett and Alyssa Davis are married and expect to file a joint return for 2014. Need 2010 taxes Their expected taxable income from all sources is $68,000. Need 2010 taxes They expect to have $15,900 of itemized deductions. Need 2010 taxes Their projected tax credits include a child and dependent care credit of $960 and an adoption credit of $1,500. Need 2010 taxes The Davis' complete Worksheet 1-8, as follows, to see whether they can convert their tax credits into additional withholding allowances. Need 2010 taxes Line 1, expected child and dependent care credit—$960. Need 2010 taxes Line 9, expected adoption credit—$1,500. Need 2010 taxes Line 10, total estimated tax credits—$2,460. Need 2010 taxes Line 11. Need 2010 taxes Their combined total income from all sources, $68,000, falls between $42,001 and $98,000 on the table for married filing jointly or qualifying widow(er). Need 2010 taxes The number to the right of this range is 6. Need 2010 taxes 7. Need 2010 taxes Line 12, multiply line 10 by line 11—$16,482. Need 2010 taxes Then the Davis' complete the Form W-4 worksheets. Need 2010 taxes Because they choose to account for their child and dependent care credit on the Deductions and Adjustments Worksheet, they enter -0- on line F of the Personal Allowances Worksheet and figure a new total for line H. Need 2010 taxes They take the result on line 12 of Worksheet 1-8, add it to their other adjustments on line 5 of the Form W-4 Deductions and Adjustments Worksheet, and complete the Form W-4 worksheets. Need 2010 taxes When Will Your New Form W-4 Go Into Effect? If the change is for the current year, your employer must put your new Form W-4 into effect no later than the start of the first payroll period ending on or after the 30th day after the day on which you give your employer your revised Form W-4. Need 2010 taxes If the change is for next year, your new Form W-4 will not take effect until next year. Need 2010 taxes Retirees Returning to the Workforce When you first began receiving your pension, you told the payer how much tax to withhold, if any, by completing Form W-4P, Withholding Certificate for Pension or Annuity Payments (or similar form). Need 2010 taxes However, if your retirement pay is from the military or certain deferred compensation plans, you completed Form W-4 instead of Form W-4P. Need 2010 taxes You completed either form based on your projected income at that time. Need 2010 taxes Now that you are returning to the workforce, your new Form W-4 (given to your employer) and your Form W-4 or W-4P (on file with your pension plan) must work together to determine the correct amount of withholding for your new amount of income. Need 2010 taxes The worksheets that come with Forms W-4 and W-4P are basically the same, so you can use either set of worksheets to figure out how many withholding allowances you are entitled to claim. Need 2010 taxes Start off with the Personal Allowances Worksheet. Need 2010 taxes Then, if you will be itemizing your deductions, claiming adjustments to income, or claiming tax credits when you file your tax return, complete the Deductions and Adjustments Worksheet. Need 2010 taxes The third worksheet is the most important for this situation. Need 2010 taxes Form W-4 calls it the Two-Earners/Multiple Jobs Worksheet, Form W-4P calls it the Multiple Pensions/More-Than-One-Income Worksheet—both are the same. Need 2010 taxes If you have more than one source of income, in order to have enough withholding to cover the tax on your higher income, you may need to claim fewer withholding allowances or request your employer to withhold an additional amount from each paycheck. Need 2010 taxes Once you have figured out how many allowances you are entitled to claim, look at the income from both your pension and your new job, and how often you receive payments. Need 2010 taxes It is your decision how to divide up your withholding allowances between these sources of income. Need 2010 taxes For example, you may want to “take home” most of your weekly paycheck to use as spending money and use your monthly pension to “pay the bills. Need 2010 taxes ” In that case, change your Form W-4P to zero allowances and claim all that you are entitled to on your Form W-4. Need 2010 taxes There are a couple of ways you can get a better idea of how much tax will be withheld when claiming a certain number of allowances. Need 2010 taxes Use the withholding tables in Publication 15 (Circular E), Employer's Tax Guide. Need 2010 taxes Contact your pension provider and your employer's payroll department. Need 2010 taxes And remember, this is not a final decision. Need 2010 taxes If you do not get the correct amount of withholding with the first Forms W-4 and W-4P you submit, you should refigure your allowances (or divide them differently) using the information and worksheets in this publication, or the resources mentioned above. Need 2010 taxes You should go through this same process each time your life situation changes, whether it be for personal or financial reasons. Need 2010 taxes You may need more tax withheld, or you may need less. Need 2010 taxes Table 1-2. Need 2010 taxes Tax Credits for 2014 For more information about the . Need 2010 taxes . Need 2010 taxes . Need 2010 taxes See . Need 2010 taxes . Need 2010 taxes . Need 2010 taxes Adoption credit Form 8839 instructions Child and dependent care expenses, credit for Publication 503, Child and Dependent Care Expenses Child tax credit (including the additional child tax credit) Instructions for Form 1040 or Form 1040A Earned income credit Publication 596, Earned Income Credit Education credits Publication 970, Tax Benefits for Education Elderly or the disabled, credit for the Publication 524, Credit for the Elderly or the Disabled Foreign tax credit (except any credit that applies to wages not subject to U. Need 2010 taxes S. Need 2010 taxes income tax withholding because they are subject to income tax withholding by a foreign country) Publication 514, Foreign Tax Credit for Individuals General business credit Form 3800, General Business Credit Mortgage interest credit Publication 530, Tax Information for First-Time Homeowners Qualified electric vehicle passive activity credit Form 8834 Prior year minimum tax, credit for (if you paid alternative minimum tax in an earlier year) Form 8801 instructions Retirement savings contributions credit (saver's credit) Publication 590, Individual Retirement Arrangements (IRAs) Tax credit bonds, credit to holders of Form 8912 instructions Completing Form W-4 and Worksheets When reading the following discussion, you may find it helpful to refer to Form W-4. Need 2010 taxes Marital Status There is a lower withholding rate for people who qualify to check the “Married” box on line 3 of Form W-4. Need 2010 taxes Everyone else must have tax withheld at the higher single rate. Need 2010 taxes Single. Need 2010 taxes   You must check the “Single” box if any of the following applies. Need 2010 taxes You are single. Need 2010 taxes If you are divorced, or separated from your spouse under a court decree of separate maintenance, you are considered single. Need 2010 taxes You are married, but neither you nor your spouse is a citizen or resident of the United States. Need 2010 taxes You are married, either you or your spouse is a nonresident alien, and you have not chosen to have that person treated as a resident alien for tax purposes. Need 2010 taxes For more information, see Nonresident Spouse Treated as a Resident in chapter 1 of Publication 519. Need 2010 taxes Married. Need 2010 taxes   You qualify to check the “Married” box if any of the following applies. Need 2010 taxes You are married and neither you nor your spouse is a nonresident alien. Need 2010 taxes You are considered married for the whole year even if your spouse died during the year. Need 2010 taxes You are married and either you or your spouse is a nonresident alien who has chosen to be treated as a resident alien for tax purposes. Need 2010 taxes For more information, see Nonresident Spouse Treated as a Resident in chapter 1 of Publication 519. Need 2010 taxes You expect to be able to file your return as a qualifying widow or widower. Need 2010 taxes You usually can use this filing status if your spouse died within the previous 2 years and you provide more than half the cost of keeping up a home for the entire year that was the main home for you and your child whom you can claim as a dependent. Need 2010 taxes However, you must file a new Form W-4 showing your filing status as single by December 1 of the last year you are eligible to file as a qualifying widow or widower. Need 2010 taxes For more information on this filing status, see Qualifying Widow(er) With Dependent Child under Filing Status in Publication 501, Exemptions, Standard Deduction, and Filing Information. Need 2010 taxes Married, but withhold at higher single rate. Need 2010 taxes   Some married people find that they do not have enough tax withheld at the married rate. Need 2010 taxes This can happen, for example, when both spouses work. Need 2010 taxes To avoid this, you can check the “Married, but withhold at higher Single rate” box (even if you qualify for the married rate). Need 2010 taxes Also, you may find that more tax is withheld if you fill out the Two-Earners/Multiple Jobs Worksheet, explained later. Need 2010 taxes Withholding Allowances The more allowances you claim on Form W-4, the less income tax your employer will withhold. Need 2010 taxes You will have the most tax withheld if you claim “0” allowances. Need 2010 taxes The number of allowances you can claim depends on the following factors. Need 2010 taxes How many exemptions you can take on your tax return. Need 2010 taxes Whether you have income from more than one job. Need 2010 taxes What deductions, adjustments to income, and credits you expect to have for the year. Need 2010 taxes Whether you will file as head of household. Need 2010 taxes If you are married (filing jointly), it also depends on whether your spouse also works and claims any allowances on his or her own Form W-4. Need 2010 taxes Or, if married filing separately, whether or not your spouse also works. Need 2010 taxes Form W-4 worksheets. Need 2010 taxes    Form W-4 has worksheets to help you figure how many withholding allowances you can claim. Need 2010 taxes The worksheets are for your own records. Need 2010 taxes Do not give them to your employer. Need 2010 taxes   Complete only one set of Form W-4 worksheets, no matter how many jobs you have. Need 2010 taxes If you are married and will file a joint return, complete only one set of worksheets for you and your spouse, even if you both earn wages and each must give Form W-4 to your employers. Need 2010 taxes Complete separate sets of worksheets only if you and your spouse will file separate returns. Need 2010 taxes   If you are not exempt from withholding (see Exemption From Withholding , later), complete the Personal Allowances Worksheet on page 1 of the form. Need 2010 taxes Also, use the worksheets on page 2 of the form to adjust the number of your withholding allowances for itemized deductions and adjustments to income, and for two-earner or multiple-job situations. Need 2010 taxes If you want to adjust the number of your withholding allowances for certain tax credits, use the Deductions and Adjustments Worksheet on page 2 of Form W-4, even if you do not have any deductions or adjustments. Need 2010 taxes   Complete all worksheets that apply to your situation. Need 2010 taxes The worksheets will help you figure the maximum number of withholding allowances you are entitled to claim so that the amount of income tax withheld from your wages will match, as closely as possible, the amount of income tax you will owe at the end of the year. Need 2010 taxes Multiple jobs. Need 2010 taxes   If you have income from more than one job at the same time, complete only one set of Form W-4 worksheets. Need 2010 taxes Then split your allowances between the Forms W-4 for each job. Need 2010 taxes You cannot claim the same allowances with more than one employer at the same time. Need 2010 taxes You can claim all your allowances with one employer and none with the other(s), or divide them any other way. Need 2010 taxes Married individuals. Need 2010 taxes   If both you and your spouse are employed and expect to file a joint return, figure your withholding allowances using your combined income, adjustments, deductions, exemptions, and credits. Need 2010 taxes Use only one set of worksheets. Need 2010 taxes You can divide your total allowances any way, but you cannot claim an allowance that your spouse also claims. Need 2010 taxes   If you and your spouse expect to file separate returns, figure your allowances using separate worksheets based on your own individual income, adjustments, deductions, exemptions, and credits. Need 2010 taxes Alternative method of figuring withholding allowances. Need 2010 taxes   You do not have to use the Form W-4 worksheets if you use a more accurate method of figuring the number of withholding allowances. Need 2010 taxes   The method you use must be based on withholding schedules, the tax rate schedules, and the 2014 Estimated Tax Worksheet in chapter 2. Need 2010 taxes It must take into account only the items of income, adjustments to income, deductions, and tax credits that are taken into account on Form W-4. Need 2010 taxes   You can use the number of withholding allowances determined under an alternative method rather than the number determined using the Form W-4 worksheets. Need 2010 taxes You still must give your employer a Form W-4 claiming your withholding allowances. Need 2010 taxes Employees who are not citizens or residents. Need 2010 taxes   If you are neither a citizen nor a resident of the United States, you usually can claim only one withholding allowance. Need 2010 taxes However, this rule does not apply if you are a resident of Canada or Mexico, or if you are a U. Need 2010 taxes S. Need 2010 taxes national. Need 2010 taxes It also does not apply if your spouse is a U. Need 2010 taxes S. Need 2010 taxes citizen or resident and you have chosen to be treated as a resident of the United States for tax purposes. Need 2010 taxes Special rules apply to residents of South Korea and India. Need 2010 taxes For more information, see Withholding From Compensation in chapter 8 of Publication 519. Need 2010 taxes Personal Allowances Worksheet Use the Personal Allowances Worksheet on page 1 of Form W-4 to figure your withholding allowances based on all of the following that apply. Need 2010 taxes Exemptions. Need 2010 taxes Only one job. Need 2010 taxes Head of household filing status. Need 2010 taxes Child and dependent care credit. Need 2010 taxes Child tax credit. Need 2010 taxes Exemptions (worksheet lines A, C, and D). Need 2010 taxes   You can claim one withholding allowance for each exemption you expect to claim on your tax return. Need 2010 taxes Self. Need 2010 taxes   You can claim an allowance for your exemption on line A unless another person can claim an exemption for you on his or her tax return. Need 2010 taxes If another person is entitled to claim an exemption for you, you cannot claim an allowance for your exemption even if the other person will not claim your exemption. Need 2010 taxes Spouse. Need 2010 taxes   You can claim an allowance for your spouse's exemption on line C unless your spouse is claiming his or her own exemption or another person can claim an exemption for your spouse. Need 2010 taxes Do not claim this allowance if you and your spouse expect to file separate returns. Need 2010 taxes Dependents. Need 2010 taxes   You can claim one allowance on line D for each exemption you will claim for a dependent on your tax return. Need 2010 taxes Only one job (worksheet line B). Need 2010 taxes    You can claim an additional withholding allowance if any of the following apply for 2014. Need 2010 taxes You are single and you have only one job at a time. Need 2010 taxes You are married, you have only one job at a time, and your spouse does not work. Need 2010 taxes Your wages from a second job or your spouse's wages (or the total of both) are $1,500 or less. Need 2010 taxes If you qualify for this allowance, enter “1” on line B of the worksheet. Need 2010 taxes Head of household filing status (worksheet line E). Need 2010 taxes   Generally, you can file as head of household if you are unmarried and pay more than half the cost of keeping up a home that: Was the main home for all of 2014 of your parent whom you can claim as a dependent, or You lived in for more than half the year with your qualifying child or any other person you can claim as a dependent. Need 2010 taxes For more information, see Publication 501. Need 2010 taxes   If you expect to file as head of household on your 2014 tax return, enter “1” on line E of the worksheet. Need 2010 taxes Reduction of personal allowances. Need 2010 taxes   For 2014, your deduction for personal exemptions on your tax return is reduced if your adjusted gross income (AGI) is more than the AGI shown next for your filing status. Need 2010 taxes Personal Allowance Phaseout Threshold Single $254,200 Married filing jointly or qualifying widow(er) $305,050 Married filing separately $152,525 Head of household $279,650   If you expect your AGI to be more than the amount listed, use Worksheet 1-1 to figure your reduced number of personal allowances on lines A, C, and D of the Personal Allowances Worksheet. Need 2010 taxes Worksheet 1-1. Need 2010 taxes Personal Allowances Worksheet (Form W-4) Reduction of Personal Allowances if AGI Above Phaseout Threshold 1. Need 2010 taxes Enter the total amount of allowances on lines A, C, and D of the Personal Allowance Worksheet without regard to the phaseout rule 1. Need 2010 taxes   2. Need 2010 taxes Enter your expected AGI 2. Need 2010 taxes       3. Need 2010 taxes Enter $254,200 if single $305,050 if married filing jointly or qualifying widow(er) $152,525 if married filing separately $279,650 if head of household 3. Need 2010 taxes       4. Need 2010 taxes Subtract line 3 from line 2 4. Need 2010 taxes       5. Need 2010 taxes Divide line 4 by $125,000 ($62,500 if married filing separately). Need 2010 taxes Enter the result as a decimal 5. Need 2010 taxes   6. Need 2010 taxes Multiply line 1 by line 5. Need 2010 taxes If the result is not a whole number, increase it to the next higher whole number 6. Need 2010 taxes   7. Need 2010 taxes Subtract line 6 from line 1. Need 2010 taxes The total of the numbers you enter on A, C, and D of the Personal Allowances Worksheet can not be more than this amount 7. Need 2010 taxes     Child and dependent care credit (worksheet line F). Need 2010 taxes   Enter “1” on line F if you expect to claim a credit for at least $2,000 of qualifying child or dependent care expenses on your 2014 return. Need 2010 taxes Generally, qualifying expenses are those you pay for the care of your dependent who is your qualifying child under age 13 or for your spouse or dependent who is not able to care for himself or herself so that you can work or look for work. Need 2010 taxes For more information, see Publication 503, Child and Dependent Care Expenses. Need 2010 taxes   Instead of using line F, you can choose to take the credit into account on line 5 of the Deductions and Adjustments Worksheet, as explained under Tax credits , later. Need 2010 taxes Child tax credit (worksheet line G). Need 2010 taxes   If your total income will be less than $65,000 ($95,000 if married), enter “2” on line G for each eligible child. Need 2010 taxes Subtract “1” from that amount if you have three to six eligible children. Need 2010 taxes Subtract “2” from that amount if you have seven or more eligible children. Need 2010 taxes   If your total income will be between $65,000 and $84,000 ($95,000 and $119,000 if married), enter “1” on line G for each eligible child. Need 2010 taxes   An eligible child is any 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), Who will be under age 17 at the end of 2014, Who is younger than you (or your spouse if filing jointly) or permanently and totally disabled, Who will not provide over half of his or her own support for 2014, Who will not file a joint return, unless the return is filed only as a claim for refund, Who will live with you for more than half of 2014, Who is a U. Need 2010 taxes S. Need 2010 taxes citizen, U. Need 2010 taxes S. Need 2010 taxes national, or U. Need 2010 taxes S. Need 2010 taxes resident alien, and Who will be claimed as a dependent on your return. Need 2010 taxes If you are a U. Need 2010 taxes S. Need 2010 taxes citizen or U. Need 2010 taxes S. Need 2010 taxes national and your adopted child lived with you all year as a member of your household, that child meets the citizenship test. Need 2010 taxes   Also, if any other person can claim the child as an eligible child, see Qualifying child of more than one person in the 2013 instructions for Form 1040 or 1040A, line 6c. Need 2010 taxes   For more information about the child tax credit, see the instructions for Form 1040 or Form 1040A. Need 2010 taxes   Instead of using line G, you can choose to take the credit into account on line 5 of the Deductions and Adjustments Worksheet, as explained under Tax credits , later. Need 2010 taxes Total personal allowances (worksheet line H). Need 2010 taxes    Add lines A through G and enter the total on line H. Need 2010 taxes If you do not use either of the worksheets on the back of Form W-4, enter the number from line H on line 5 of Form W-4. Need 2010 taxes Deductions and Adjustments Worksheet Use the Deductions and Adjustments Worksheet on page 2 of Form W-4 if you plan to itemize your deductions, claim certain credits, or claim adjustments to the income on your 2014 tax return and you want to reduce your withholding. Need 2010 taxes Also, complete this worksheet when you have changes to those items to see if you need to change your withholding. Need 2010 taxes Use the amount of each item you reasonably can expect to show on your return. Need 2010 taxes However, do not use more than: The amount shown for that item on your 2013 return (or your 2012 return if you have not yet filed your 2013 return), plus Any additional amount related to a transaction or occurrence (such as payments already made, the signing of an agreement, or the sale of property) that you can prove has happened or will happen during 2013 or 2014. Need 2010 taxes Do not include any amount shown on your last tax return that has been disallowed by the IRS. Need 2010 taxes Example. Need 2010 taxes On June 30, 2013, you bought your first home. Need 2010 taxes On your 2013 tax return, you claimed itemized deductions of $6,600, the total mortgage interest and real estate tax you paid during the 6 months you owned your home. Need 2010 taxes Based on your mortgage payment schedule and your real estate tax assessment, you reasonably can expect to claim deductions of $13,200 for those items on your 2014 return. Need 2010 taxes You can use $13,200 to figure the number of your withholding allowances for itemized deductions. Need 2010 taxes Not itemizing deductions. Need 2010 taxes   If you expect to claim the standard deduction on your tax return, skip lines 1 and 2, and enter “0” on line 3 of the worksheet. Need 2010 taxes Itemized deductions (worksheet line 1). Need 2010 taxes   Enter your estimated total itemized deductions on line 1 of the worksheet. Need 2010 taxes   Listed below are some of the deductions you can take into account when figuring additional withholding allowances for 2014. Need 2010 taxes You normally claim these deductions on Schedule A of Form 1040. Need 2010 taxes Medical and dental expenses that are more than 10% (7. Need 2010 taxes 5% if either you or your spouse was born before January 2, 1950) of your 2014 AGI (defined under AGI , later). Need 2010 taxes State and local income or property taxes. Need 2010 taxes Deductible home mortgage interest. Need 2010 taxes Investment interest up to net investment income. Need 2010 taxes Charitable contributions. Need 2010 taxes Casualty and theft losses that are more than $100 and 10% of your AGI. Need 2010 taxes Fully deductible miscellaneous itemized deductions, including: Impairment-related work expenses of persons with disabilities, Federal estate tax on income in respect of a decedent, Repayment of more than $3,000 of income held under a claim of right that you included in income in an earlier year because at the time you thought you had an unrestricted right to it, Unrecovered investments in an annuity contract under which payments have ceased because of the annuitant's death, Gambling losses up to the amount of gambling winnings reported on your return, and Casualty and theft losses from  income-producing property. Need 2010 taxes Other miscellaneous itemized deductions that are more than 2% of your AGI, including: Unreimbursed employee business expenses, such as education expenses, work clothes and uniforms, union dues and fees, and the cost of work-related small tools and supplies, Safe deposit box rental, Tax counsel and assistance, and Certain fees paid to an IRA trustee or custodian. Need 2010 taxes AGI. Need 2010 taxes   For the purpose of estimating your itemized deductions, your AGI is your estimated total income for 2014 minus any estimated adjustments to income (discussed later) that you include on line 4 of the Deductions and Adjustments Worksheet. Need 2010 taxes Phaseout of itemized deductions. Need 2010 taxes   For 2014, your total itemized deductions may be phased out (reduced) if your AGI is more than the following thresholds. Need 2010 taxes    Itemized Deduction Phaseout Threshold Single $254,200 Married filing jointly or qualifying widow(er) $305,050 Married filing separately $152,525 Head of household $279,650   If you expect your AGI to be more than the amount listed, use Worksheet 1–2 to figure your reduction in itemized deductions. Need 2010 taxes Worksheet 1-2. Need 2010 taxes Deductions and Adjustments Worksheet (Form W-4)—Line 1 Phaseout of Itemized Deductions 1. Need 2010 taxes Enter the estimated total of your itemized deductions 1. Need 2010 taxes   2. Need 2010 taxes Enter the amount included in line 1 for medical and dental expenses, investment interest, casualty or theft losses, and gambling losses 2. Need 2010 taxes   3. Need 2010 taxes Is the amount on line 2 less than the amount on line 1? ❑ No. Need 2010 taxes Stop here. Need 2010 taxes Your deduction is not limited. Need 2010 taxes Enter the amount from line 1 above on line 1 of the Deductions and Adjustments Worksheet. Need 2010 taxes  ❑ Yes. Need 2010 taxes Subtract line 2 from line 1. Need 2010 taxes 3. Need 2010 taxes       4. Need 2010 taxes Multiply line 3 by 80% (. Need 2010 taxes 80) 4. Need 2010 taxes       5. Need 2010 taxes Enter your expected AGI 5. Need 2010 taxes       6. Need 2010 taxes Enter $305,050 If married filing jointly or qualifying widow(er), $279,650 if head of household, $254,200 if single, or $152,525 if married filing separately 6. Need 2010 taxes   7. Need 2010 taxes Is the amount on line 6 less than the amount on line 5? ❑ No. Need 2010 taxes Stop here. Need 2010 taxes Your deduction is not limited. Need 2010 taxes Enter the amount from line 1 above on line 1 of the Deductions and Adjustments Worksheet. Need 2010 taxes  ❑ Yes. Need 2010 taxes Subtract line 6 from line 5. Need 2010 taxes 7. Need 2010 taxes       8. Need 2010 taxes Multiply line 7 by 3% (. Need 2010 taxes 03) 8. Need 2010 taxes       9. Need 2010 taxes Enter the smaller of line 4 or line 8 9. Need 2010 taxes     10. Need 2010 taxes Subtract line 9 from line 1. Need 2010 taxes Enter the result here and on line 1 of the Deductions and Adjustments Worksheet 10. Need 2010 taxes     Adjustments to income (worksheet line 4). Need 2010 taxes   Enter your estimated total adjustments to income on line 4 of the Deductions and Adjustments Worksheet. Need 2010 taxes   You can take the following adjustments to income into account when figuring additional withholding allowances for 2014. Need 2010 taxes These adjustments appear on page 1 of your Form 1040 or 1040A. Need 2010 taxes Net losses from Schedules C, D, E, and F of Form 1040 and from Part II of Form 4797, line 18b. Need 2010 taxes Net operating loss carryovers. Need 2010 taxes Certain business expenses of reservists, performing artists, and fee-based government officials. Need 2010 taxes Health savings account or medical savings account deduction. Need 2010 taxes Certain moving expenses. Need 2010 taxes Deduction for self-employment tax. Need 2010 taxes Deduction for contributions to self-employed SEP, and qualified SIMPLE plans. Need 2010 taxes Self-employed health insurance deduction. Need 2010 taxes Penalty on early withdrawal of savings. Need 2010 taxes Alimony paid. Need 2010 taxes IRA deduction. Need 2010 taxes Student loan interest deduction. Need 2010 taxes Jury duty pay given to your employer. Need 2010 taxes Reforestation amortization and expenses. Need 2010 taxes Deductible expenses related to income reported on line 21 from the rental of personal property engaged in for profit. Need 2010 taxes Repayment of certain supplemental unemployment benefits. Need 2010 taxes Contributions to IRC 501(c)(18)(D) pension plans. Need 2010 taxes Contributions by certain chaplains to IRC 403(b) plans. Need 2010 taxes Attorney fees and court costs for certain unlawful discrimination claims. Need 2010 taxes Attorney fees and court costs for certain whistleblower awards. Need 2010 taxes Estimated amount of decrease in tax attributable to income averaging using Schedule J (Form 1040). Need 2010 taxes Tax credits (worksheet line 5). Need 2010 taxes   Although you can take most tax credits into account when figuring withholding allowances, the Personal Allowances Worksheet uses only the child and dependent care credit (line F) and the child tax credit (line G). Need 2010 taxes But you can take these credits and others into account by adding an extra amount on line 5 of the Deductions and Adjustments Worksheet. Need 2010 taxes   If you take the child and dependent care credit into account on line 5, do not use line F. Need 2010 taxes If you take the child tax credit into account on line 5, do not use line G. Need 2010 taxes   In addition to the child and dependent care credit and the child tax credit, you can generally take into account the following credits. Need 2010 taxes See the individual tax form instructions for more details. Need 2010 taxes Foreign tax credit, except any credit that applies to wages not subject to U. Need 2010 taxes S. Need 2010 taxes income tax withholding because they are subject to income tax withholding by a foreign country. Need 2010 taxes See Publication 514, Foreign Tax Credit for Individuals. Need 2010 taxes Credit for the elderly or the disabled. Need 2010 taxes See Publication 524, Credit for the Elderly or the Disabled. Need 2010 taxes Education credits. Need 2010 taxes See Publication 970, Tax Benefits for Education. Need 2010 taxes Retirement savings contributions credit (saver's credit). Need 2010 taxes See Publication 590. Need 2010 taxes Mortgage interest credit. Need 2010 taxes See Publication 530, Tax Information for Homeowners. Need 2010 taxes Adoption credit. Need 2010 taxes See the Instructions for Form 8839. Need 2010 taxes Credit for nonrefundable portion of prior year minimum tax if you paid alternative minimum tax in an earlier year. Need 2010 taxes See the Instructions for Form 8801. Need 2010 taxes General business credit. Need 2010 taxes See the Instructions for Form 3800. Need 2010 taxes Earned income credit. Need 2010 taxes See Publication 596. Need 2010 taxes Figuring line 5 entry. Need 2010 taxes   To figure the amount to add on line 5 for tax credits, multiply your estimated total credits by the appropriate number from Table 1-3 . Need 2010 taxes Example. Need 2010 taxes You are married and expect to file a joint return for 2014. Need 2010 taxes Your combined estimated wages are $68,000. Need 2010 taxes Your estimated tax credits include a child and dependent care credit of $960 and a mortgage interest credit of $1,700 (total credits = $2,660). Need 2010 taxes In Table 1-3, the number corresponding to your combined estimated wages ($42,001 – $98,000) is 6. Need 2010 taxes 7. Need 2010 taxes Multiply your total estimated tax credits of $2,660 by 6. Need 2010 taxes 7. Need 2010 taxes Add the result, $17,822, to the amount you otherwise would show on line 5 of the Deductions and Adjustments Worksheet and enter the total on line 5. Need 2010 taxes Because you choose to account for your child and dependent care credit this way, do not make an entry on line F of the Personal Allowances Worksheet. Need 2010 taxes Nonwage income (worksheet line 6). Need 2010 taxes   Enter on line 6 your estimated total nonwage income (other than tax-exempt income). Need 2010 taxes Nonwage income includes interest, dividends, net rental income, unemployment compensation, alimony, gambling winnings, prizes and awards, hobby income, capital gains, royalties, and partnership income. Need 2010 taxes   If line 6 is more than line 5, you may not have enough income tax withheld from your wages. Need 2010 taxes See Getting the Right Amount of Tax Withheld , later. Need 2010 taxes Net deductions and adjustments (worksheet line 8). Need 2010 taxes    If line 7 is less than $3,950, enter “0” on line 8. Need 2010 taxes If line 7 is $3,950 or more, divide it by $3,950, drop any fraction, and enter the result on line 8. Need 2010 taxes Example. Need 2010 taxes If line 7 is $5,200, $5,200 ÷ $3,950 = 1. Need 2010 taxes 32. Need 2010 taxes Drop the fraction (. Need 2010 taxes 32) and enter “1” on line 8. Need 2010 taxes Two-Earners/Multiple Jobs Worksheet Complete the Two-Earners/Multiple Jobs Worksheet on page 2 of Form W-4 if you have more than one job or are married and you and your spouse both work and the combined earnings from all jobs are more than $50,000 ($20,000 if married). Need 2010 taxes Reducing your allowances (worksheet lines 1-3). Need 2010 taxes   On line 1 of the worksheet, enter the number from line H of the Personal Allowances Worksheet (or line 10 of the Deductions and Adjustments Worksheet, if used). Need 2010 taxes Using Table 1 in the Two-Earners/Multiple Jobs Worksheet, find the number listed beside the amount of your estimated wages for the year from your lowest paying job (or if lower and you are filing jointly, your spouse's job). Need 2010 taxes Enter that number on line 2. Need 2010 taxes However, if you are married filing jointly and estimated wages from the highest paying job are $65,000 or less, do not enter more than “3. Need 2010 taxes ”    Table 1-3. Need 2010 taxes Deductions and Adjustments Worksheet (Form W-4)—Line 5 a. Need 2010 taxes  Married Filing Jointly or Qualifying Widow(er) If combined income from all sources is:   Multiply credits by: $0 – 42,000 10. Need 2010 taxes 0 $42,001 – 98,000 6. Need 2010 taxes 7 $98,001 – 180,000 4. Need 2010 taxes 0 $180,001 – 270,000 3. Need 2010 taxes 6 $270,001 – 440,000 3. Need 2010 taxes 0 $440,001 – 490,000. Need 2010 taxes . Need 2010 taxes . Need 2010 taxes . Need 2010 taxes 2. Need 2010 taxes 9 $490,001 and over 2. Need 2010 taxes 5 b. Need 2010 taxes  Single If combined income from all sources is:   Multiply credits by: $0 – 19,000 10. Need 2010 taxes 0 $19,001 – 47,000 6. Need 2010 taxes 7 $47,001 – 104,000 4. Need 2010 taxes 0 $104,001 – 205,000 3. Need 2010 taxes 6 $205,001 – 430,000 3. Need 2010 taxes 0 $430,001 and over 2. Need 2010 taxes 5 c. Need 2010 taxes  Head of Household If combined income from all sources is:   Multiply credits by: $0 – 30,000 10. Need 2010 taxes 0 $30,001 – 66,000 6. Need 2010 taxes 7 $66,001 – 150,000 4. Need 2010 taxes 0 $150,001 – 235,000 3. Need 2010 taxes 6 $235,001 – 430,000 3. Need 2010 taxes 0 $430,001 – 460,000 2. Need 2010 taxes 9 $460,001 and over 2. Need 2010 taxes 5 d. Need 2010 taxes  Married Filing Separately   If combined income from all sources is:   Multiply credits by: $0 – 21,000 10. Need 2010 taxes 0 $21,001 – 49,000 6. Need 2010 taxes 7 $49,001 – 90,000 4. Need 2010 taxes 0 $90,001 – 135,000 3. Need 2010 taxes 6 $135,001 – 220,000 3. Need 2010 taxes 0 $220,001 – 245,000 2. Need 2010 taxes 9 $245,001 and over 2. Need 2010 taxes 5   Subtract line 2 from line 1 and enter the result (but not less than zero) on line 3 and on Form W-4, line 5. Need 2010 taxes If line 1 is more than or equal to line 2, do not use the rest of the worksheet. Need 2010 taxes   If line 1 is less than line 2, enter “0” on Form W-4, line 5. Need 2010 taxes Then complete lines 4 through 9 of the worksheet to figure the additional withholding needed to avoid underwithholding. Need 2010 taxes Other amounts owed. Need 2010 taxes   If you expect to owe amounts other than income tax, such as self-employment tax, include them on line 8. Need 2010 taxes The total is the additional withholding needed for the year. Need 2010 taxes Getting the Right Amount of Tax Withheld In most situations, the tax withheld from your pay will be close to the tax you figure on your return if you follow these two rules. Need 2010 taxes You accurately complete all the Form W-4 worksheets that apply to you. Need 2010 taxes You give your employer a new Form W-4 when changes occur. Need 2010 taxes But because the worksheets and withholding methods do not account for all possible situations, you may not be getting the right amount withheld. Need 2010 taxes This is most likely to happen in the following situations. Need 2010 taxes You are married and both you and your spouse work. Need 2010 taxes You have more than one job at a time. Need 2010 taxes You have nonwage income, such as interest, dividends, alimony, unemployment compensation, or self-employment income. Need 2010 taxes You will owe additional amounts with your return, such as self-employment tax. Need 2010 taxes Your withholding is based on obsolete Form W-4 information for a substantial part of the year. Need 2010 taxes Your earnings are more than $130,000 if you are single or $180,000 if you are married. Need 2010 taxes You work only part of the year. Need 2010 taxes You change the number of your withholding allowances during the year. Need 2010 taxes You are subject to Additional Medicare Tax or Net Investment Income Tax. Need 2010 taxes If you anticipate liability for Additional Medicare Tax or Net Investment Income Tax, you may request that your employer withhold an additional amount of income tax withholding on Form W-4. Need 2010 taxes Part-Year Method If you work only part of the year and your employer agrees to use the part-year withholding method, less tax will be withheld from each wage payment than would be withheld if you worked all year. Need 2010 taxes To be eligible for the part-year method, you must meet both of the following requirements. Need 2010 taxes You must use the calendar year (the 12 months from January 1 through December 31) as your tax year. Need 2010 taxes You cannot use a fiscal year. Need 2010 taxes You must not expect to be employed for more than 245 days during the year. Need 2010 taxes To figure this limit, count all calendar days that you are employed (including weekends, vacations, and sick days) beginning with the first day you are on the job for pay and ending with your last day of work. Need 2010 taxes If you are temporarily laid off for 30 days or less, count those days too. Need 2010 taxes If you are laid off for more than 30 days, do not count those days. Need 2010 taxes You will not meet this requirement if you begin working before May 1 and expect to work for the rest of the year. Need 2010 taxes How to apply for the part-year method. Need 2010 taxes   You must ask your employer in writing to use this method. Need 2010 taxes The request must state all three of the following. Need 2010 taxes The date of your last day of work for any prior employer during the current calendar year. Need 2010 taxes That you do not expect to be employed more than 245 days during the current calendar year. Need 2010 taxes That you use the calendar year as your tax year. Need 2010 taxes Cumulative Wage Method If you change the number of your withholding allowances during the year, too much or too little tax may have been withheld for the period before you made the change. Need 2010 taxes You may be able to compensate for this if your employer agrees to use the cumulative wage withholding method for the rest of the year. Need 2010 taxes You must ask your employer in writing to use this method. Need 2010 taxes To be eligible, you must have been paid for the same kind of payroll period (weekly, biweekly, etc. Need 2010 taxes ) since the beginning of the year. Need 2010 taxes Aids for Figuring Your Withholding IRS Withholding Calculator. Need 2010 taxes   If you had too much or too little income tax withheld from your pay, the IRS provides a withholding calculator on its website. Need 2010 taxes Go to www. Need 2010 taxes irs. Need 2010 taxes gov/Individuals/IRS-Withholding-Calculator. Need 2010 taxes It can help you determine the correct amount to be withheld any time during the year. Need 2010 taxes Rules Your Employer Must Follow It may be helpful for you to know some of the withholding rules your employer must follow. Need 2010 taxes These rules can affect how to fill out your Form W-4 and how to handle problems that may arise. Need 2010 taxes New Form W-4. Need 2010 taxes   When you start a new job, your employer should give you a Form W-4 to fill out. Need 2010 taxes Beginning with your first payday, your employer will use the information you give on the form to figure your withholding. Need 2010 taxes   If you later fill out a new Form W-4, your employer can put it into effect as soon as possible. Need 2010 taxes The deadline for putting it into effect is the start of the first payroll period ending 30 or more days after you turn it in. Need 2010 taxes No Form W-4. Need 2010 taxes   If you do not give your employer a completed Form W-4, your employer must withhold at the highest rate, as if you were single and claimed no withholding allowances. Need 2010 taxes Repaying withheld tax. Need 2010 taxes   If you find you are having too much tax withheld because you did not claim all the withholding allowances you are entitled to, you should give your employer a new Form W-4. Need 2010 taxes Your employer cannot repay any of the tax previously withheld. Need 2010 taxes Instead, claim the full amount withheld when you file your tax return. Need 2010 taxes   However, if your employer has withheld more than the correct amount of tax for the Form W-4 you have in effect, you do not have to fill out a new Form W-4 to have your withholding lowered to the correct amount. Need 2010 taxes Your employer can repay the amount that was withheld incorrectly. Need 2010 taxes If you are not repaid, your Form W-2 will reflect the full amount actually withheld, which you would claim when you file your tax return. Need 2010 taxes IRS review of your withholding. Need 2010 taxes   Whether you are entitled to claim a certain number of allowances or a complete exemption from withholding is subject to review by the IRS. Need 2010 taxes Your employer may be required to send a copy of the Form W-4 to the IRS. Need 2010 taxes There is a penalty for supplying false information on Form W-4. Need 2010 taxes See Penalties , later. Need 2010 taxes   If the IRS determines that you cannot claim more than a specified number of withholding allowances or claim a complete exemption from withholding, the IRS will issue a notice of the maximum number of withholding allowances permitted (commonly referred to as a “lock-in letter”) to both you and your employer. Need 2010 taxes   The IRS will provide a period of time during which you can dispute the determination before your employer adjusts your withholding. Need 2010 taxes If you believe that you are entitled to claim complete exemption from withholding or claim more withholding allowances than the maximum number specified by the IRS in the lock-in letter, you must submit a new Form W-4 and a written statement to support your claims to the IRS. Need 2010 taxes Contact information (a toll-free number and an IRS office address) will be provided in the lock-in letter. Need 2010 taxes At the end of this period, if you have not responded or if your response is not adequate, your employer will be required to withhold based on the original lock-in letter. Need 2010 taxes   After the lock-in letter takes effect, your employer must withhold tax on the basis of the withholding rate (marital status) and maximum number of withholding allowances specified in that letter. Need 2010 taxes   If you later believe that you are entitled to claim exemption from withholding or more allowances than the IRS determined, you can complete a new Form W-4 and a written statement to support the claims made on the Form W-4 and send them directly to the IRS address shown on the lock-in letter. Need 2010 taxes Your employer must continue to figure your withholding on the basis of the number of allowances previously determined by the IRS until the IRS advises your employer otherwise. Need 2010 taxes   At any time, either before or after the lock-in letter becomes effective, you may give your employer a new Form W-4 that does not claim complete exemption from withholding and results in more income tax withheld than specified in the lock-in letter. Need 2010 taxes Your employer must then withhold tax based on this new Form W-4. Need 2010 taxes   Additional information is available at IRS. Need 2010 taxes gov. Need 2010 taxes Enter “withholding compliance questions” in the search box. Need 2010 taxes Exemption From Withholding If you claim exemption from withholding, your employer will not withhold federal income tax from your wages. Need 2010 taxes The exemption applies only to income tax, not to social security or Medicare tax. Need 2010 taxes You can claim exemption from withholding for 2014 only if both of the following situations apply. Need 2010 taxes For 2013 you had a right to a refund of all federal income tax withheld because you had no tax liability. Need 2010 taxes For 2014 you expect a refund of all federal income tax withheld because you expect to have no tax liability. Need 2010 taxes Use Figure 1-A to help you decide whether you can claim exemption from withholding. Need 2010 taxes Do not use Figure 1-A if you: Are 65 or older, Are blind, Will itemize deductions on your 2014 return, Will claim an exemption for a dependent on your 2014 return, or Will claim any tax credits on your 2014 return. Need 2010 taxes These situations are discussed later. Need 2010 taxes Students. Need 2010 taxes   If you are a student, you are not automatically exempt. Need 2010 taxes If you work only part time or during the summer, you may qualify for exemption from withholding. Need 2010 taxes Example 1. Need 2010 taxes You are a high school student and expect to earn $2,500 from a summer job. Need 2010 taxes You do not expect to have any other income during the year, and your parents will be able to claim an exemption for you on their tax return. Need 2010 taxes You worked last summer and had $375 federal income tax withheld from your pay. Need 2010 taxes The entire $375 was refunded when you filed your 2013 return. Need 2010 taxes Using Figure 1-A, you find that you can claim exemption from withholding. Need 2010 taxes Please click here for the text description of the image. Need 2010 taxes Figure 1-A: Exemption From Withholding on Form W-4 Example 2. Need 2010 taxes The facts are the same as in Example 1, except that you also have a savings account and expect to have $400 interest income during the year. Need 2010 taxes Using Figure 1-A, you find that you cannot claim exemption from withholding because your unearned income will be more than $350 and your total income will be more than $1,000. Need 2010 taxes    You may have to file a tax return, even if you are exempt from withholding. Need 2010 taxes See Publication 501 to see whether you must file a return. Need 2010 taxes    Age 65 or older or blind. Need 2010 taxes If you are 65 or older or blind, use Worksheet 1-3 or Worksheet 1-4, to help you decide whether you can claim exemption from withholding. Need 2010 taxes Do not use either worksheet if you will itemize deductions, claim exemptions for dependents, or claim tax credits on your 2014 return. Need 2010 taxes Instead, see Itemizing deductions or claiming exemptions or credits, next. Need 2010 taxes Itemizing deductions or claiming exemptions or credits. Need 2010 taxes   If you had no tax liability for 2013, and you will: Itemize deductions, Claim an exemption for a dependent, or Claim a tax credit, use the 2014 Estimated Tax Worksheet (also see chapter 2), to figure your 2014 expected tax liability. Need 2010 taxes You can claim exemption from withholding only if your total expected tax liability (line 13c of the worksheet) is zero. Need 2010 taxes Claiming exemption from withholding. Need 2010 taxes   To claim exemption, you must give your employer a Form W-4. Need 2010 taxes Do not complete lines 5 and 6. Need 2010 taxes Enter “Exempt” on line 7. Need 2010 taxes   If you claim exemption, but later your situation changes so that you will have to pay income tax after all, you must file a new Form W-4 within 10 days after the change. Need 2010 taxes If you claim exemption in 2014 but you expect to owe income tax for 2015, you must file a new Form W-4 by December 1, 2014. Need 2010 taxes   Your claim of exempt status may be reviewed by the IRS. Need 2010 taxes See IRS review of your withholding , earlier. Need 2010 taxes An exemption is good for only 1 year. Need 2010 taxes   You must give your employer a new Form W-4 by February 15 each year to continue your exemption. Need 2010 taxes Supplemental Wages Supplemental wages include bonuses, commissions, overtime pay, vacation allowances, certain sick pay, and expense allowances under certain plans. Need 2010 taxes The payer can figure withholding on supplemental wages using the same method used for your regular wages. Need 2010 taxes However, if these payments are identified separately from regular wages, your employer or other payer of supplemental wages can withhold income tax from these wages at a flat rate. Need 2010 taxes Expense allowances. Need 2010 taxes   Reimbursements or other expense allowances paid by your employer under a nonaccountable plan are treated as supplemental wages. Need 2010 taxes A nonaccountable plan is a reimbursement arrangement that does not require you to account for, or prove, your business expenses to your employer or does not require you to return your employer's payments that are more than your proven expenses. Need 2010 taxes   Reimbursements or other expense allowances paid under an accountable plan that are more than your proven expenses are treated as paid under a nonaccountable plan if you do not return the excess payments within a reasonable period of time. Need 2010 taxes Accountable plan. Need 2010 taxes   To be an accountable plan, your employer's reimbursement or allowance arrangement must include all three of the following rules. Need 2010 taxes Your expenses must have a business connection. Need 2010 taxes That is, you must have paid or incurred deductible expenses while performing services as an employee of your employer. Need 2010 taxes You must adequately account to your employer for these expenses within a reasonable period of time. Need 2010 taxes You must return any excess reimbursement or allowance within a reasonable period of time. Need 2010 taxes    An excess reimbursement or allowance is any amount you are paid that is more than the business-related expenses that you adequately accounted for to your employer. Need 2010 taxes   The definition of reasonable period of time depends on the facts and circumstances of your situation. Need 2010 taxes However, regardless of those facts and circumstances, actions that take place within the times specified in the following list will be treated as taking place within a reasonable period of time. Need 2010 taxes You receive an advance within 30 days of the time you have an expense. Need 2010 taxes You adequately account for your expenses within 60 days after they were paid or incurred. Need 2010 taxes You return any excess reimbursement within 120 days after the expense was paid or incurred. Need 2010 taxes You are given a periodic statement (at least quarterly) that asks you to either return or adequately account for outstanding advances and you comply within 120 days of the statement. Need 2010 taxes Nonaccountable plan. Need 2010 taxes   Any plan that does not meet the definition of an accountable plan is considered a nonaccountable plan. Need 2010 taxes For more information about accountable and nonaccountable plans, see chapter 6 of Publication 463, Travel, Entertainment, Gift, and Car Expenses. Need 2010 taxes Penalties You may have to pay a penalty of $500 if both of the following apply. Need 2010 taxes You make statements or claim withholding allowances on your Form W-4 that reduce the amount of tax withheld. Need 2010 taxes You have no reasonable basis for those statements or allowances at the time you prepare your Form W-4. Need 2010 taxes There is also a criminal penalty for willfully supplying false or fraudulent information on your Form W-4 or for willfully failing to supply information that would increase the amount withheld. Need 2010 taxes The penalty upon conviction can be either a fine of up to $1,000 or imprisonment for up to 1 year, or both. Need 2010 taxes These penalties will apply if you deliberately and knowingly falsify your Form W-4 in an attempt to reduce or eliminate the proper withholding of taxes. Need 2010 taxes A simple error or an honest mistake will not result in one of these penalties. Need 2010 taxes For example, a person who has tried to figure the number of withholding allowances correctly, but claims seven when the proper number is six, will not be charged a Form W-4 penalty. Need 2010 taxes However, see chapter 4 for information on the penalty for underpaying your tax. Need 2010 taxes Tips The tips you receive while working on your job are considered part of your pay. Need 2010 taxes You must include your tips on your tax return on the same line as your regular pay. Need 2010 taxes However, tax is not withheld directly from tip income, as it is from your regular pay. Need 2010 taxes Nevertheless, your employer will take into account the tips you report when figuring how much to withhold from your regular pay. Need 2010 taxes Reporting tips to your employer. Need 2010 taxes   If you receive tips of $20 or more in a month while working for any one employer, you must report to your employer the total amount of tips you receive on the job during the month. Need 2010 taxes The report is due by the 10th day of the following month. Need 2010 taxes   If you have more than one job, make a separate report to each employer. Need 2010 taxes Report only the tips you received while working for that employer, and only if they total $20 or more for the month. Need 2010 taxes How employer figures amount to withhold. Need 2010 taxes   The tips you report to your employer are counted as part of your income for the month you report them. Need 2010 taxes Your employer can figure your withholding in either of two ways. Need 2010 taxes By withholding at the regular rate on the sum of your pay plus your reported tips. Need 2010 taxes By withholding at the regular rate on your pay plus a percentage of your reported tips. Need 2010 taxes Not enough pay to cover taxes. Need 2010 taxes   If your regular pay is not enough for your employer to withhold all the tax (including income tax and social security and Medicare taxes (or the equivalent railroad retirement tax)) due on your pay plus your tips, you can give your employer money to cover the shortage. Need 2010 taxes   If you do not give your employer money to cover the shortage, your employer first withholds as much Medicare tax and social security or railroad retirement tax as possible, up to the proper amount, and then withholds income tax up to the full amount of your pay. Need 2010 taxes If not enough tax is withheld, you may have to pay estimated tax. Need 2010 taxes When you file your return, you also may have to pay any Medicare and social security tax or railroad retirement tax your employer could not withhold. Need 2010 taxes Tips not reported to your employer. Need 2010 taxes   On your tax return, you must report all the tips you receive during the year, even tips you do not report to your employer (this includes the value of any noncash tips you received, such as tickets, passes, or other items of value). Need 2010 taxes Make sure you are having enough tax withheld, or are paying enough estimated tax (see chapter 2), to cover all your tip income. Need 2010 taxes Allocated tips. Need 2010 taxes   If you work in a large food or beverage establishment, your employer may have to report an allocated amount of tips on your Form W-2. Need 2010 taxes   Your employer should not withhold income tax, Medicare tax, and social security or railroad retirement tax on the allocated amount. Need 2010 taxes Withholding is based only on your pay plus your reported tips. Need 2010 taxes Your employer should refund to you any incorrectly withheld tax. Need 2010 taxes More information. Need 2010 taxes   For more information on the reporting and withholding rules for tip income and on tip allocation, see Publi