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2007 Tax Software

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2007 Tax Software

2007 tax software Publication 80 - Introductory Material Table of Contents Future Developments What's New Reminders Calendar Future Developments For the latest information about developments related to Publication 80 (Circular SS), such as legislation enacted after it was published, go to www. 2007 tax software irs. 2007 tax software gov/pub80. 2007 tax software What's New Social security and Medicare tax for 2014. 2007 tax software  The social security tax rate is 6. 2007 tax software 2% each for the employee and employer, unchanged from 2013. 2007 tax software The social security wage base limit is $117,000. 2007 tax software The Medicare tax rate is 1. 2007 tax software 45% each for the employee and employer, unchanged from 2013. 2007 tax software There is no wage base limit for Medicare tax. 2007 tax software Social security and Medicare taxes apply to the wages of household workers you pay $1,900 or more in cash or an equivalent form of compensation. 2007 tax software Social security and Medicare taxes apply to election workers who are paid $1,600 or more in cash or an equivalent form of compensation. 2007 tax software Change of responsible party. 2007 tax software . 2007 tax software  Beginning January 1, 2014, any entity with an employer identification number (EIN) must file Form 8822-B, Change of Address or Responsible Party—Business, to report the latest change to its responsible party. 2007 tax software Form 8822-B must be filed within 60 days of the change. 2007 tax software If the change in the identity of your responsible party occurred before 2014, and you have not previously notified the IRS of the change, file Form 8822-B before March 1, 2014, reporting only the most recent change. 2007 tax software For a definition of “responsible party”, see the Form 8822-B instructions. 2007 tax software Same-sex marriage. 2007 tax software  For federal tax purposes, individuals of the same sex are considered married if they were lawfully married in a state (or foreign country) whose laws authorize the marriage of two individuals of the same sex, even if the state (or foreign country) in which they now live does not recognize same-sex marriage. 2007 tax software For more information, see Revenue Ruling 2013-17, 2013-38 I. 2007 tax software R. 2007 tax software B. 2007 tax software 201, available at www. 2007 tax software irs. 2007 tax software gov/irb/2013-38_IRB/ar07. 2007 tax software html. 2007 tax software Notice 2013-61 provides special administrative procedures for employers to make claims for refund or adjustments of overpayments of social security and Medicare taxes with respect to certain same-sex spouse benefits before expiration of the period of limitations. 2007 tax software Notice 2013-61, 2013-44 I. 2007 tax software R. 2007 tax software B. 2007 tax software 432, is available at www. 2007 tax software irs. 2007 tax software gov/irb/2013-44_IRB/ar10. 2007 tax software html. 2007 tax software Reminders Additional Medicare Tax withholding. 2007 tax software  In addition to withholding Medicare tax at 1. 2007 tax software 45%, you must withhold a 0. 2007 tax software 9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. 2007 tax software You are required to begin withholding Additional Medicare Tax in the pay period in which you pay wages in excess of $200,000 to an employee and continue to withhold it each pay period until the end of the calendar year. 2007 tax software Additional Medicare Tax is only imposed on the employee. 2007 tax software There is no employer share of Additional Medicare Tax. 2007 tax software All wages that are subject to Medicare tax are subject to Additional Medicare Tax withholding if paid in excess of the $200,000 withholding threshold. 2007 tax software For more information on what wages are subject to Medicare tax, see the chart, Special Rules for Various Types of Employment and Payments , in section 12. 2007 tax software For more information on Additional Medicare Tax, visit IRS. 2007 tax software gov and enter “Additional Medicare Tax” in the search box. 2007 tax software Work opportunity tax credit for qualified tax-exempt organizations hiring qualified veterans. 2007 tax software  The work opportunity tax credit is available for eligible unemployed veterans who begin work on or after November 22, 2011, and before January 1, 2014. 2007 tax software Qualified tax-exempt organizations that hire eligible unemployed veterans can claim the work opportunity tax credit against their payroll tax liability using Form 5884-C, Work Opportunity Credit for Qualified Tax-Exempt Organizations Hiring Qualified Veterans. 2007 tax software For more information, visit IRS. 2007 tax software gov and enter “work opportunity tax credit” in the search box. 2007 tax software Outsourcing payroll duties. 2007 tax software  Employers are responsible to ensure that tax returns are filed and deposits and payments are made, even if the employer contracts with a third party to perform these acts. 2007 tax software The employer remains responsible if the third party fails to perform any required action. 2007 tax software If you choose to outsource any of your payroll and related tax duties (that is, withholding, reporting, and paying over social security, Medicare, FUTA, and income taxes) to a third-party payer such as a payroll service provider or reporting agent, visit IRS. 2007 tax software gov and enter “outsourcing payroll duties” in the search box for helpful information on this topic. 2007 tax software Residents of the Philippines working in the Commonwealth of the Northern Mariana Islands (CNMI). 2007 tax software  The IRS will not assert that an employer has understated liability for social security and Medicare taxes because they failed to treat services performed before January 1, 2015, in the CNMI by a resident of the Philippines as employment as defined under Internal Revenue Code section 3121(b). 2007 tax software For more information, see Announcement 2012-43, 2012-51 I. 2007 tax software R. 2007 tax software B. 2007 tax software 723, available at www. 2007 tax software irs. 2007 tax software gov/irb/2012-51_IRB/ar15. 2007 tax software html. 2007 tax software CNMI government employees now subject to social security and Medicare taxes. 2007 tax software  Beginning in the fourth calendar quarter of 2012, CNMI government employees are subject to social security and Medicare taxes. 2007 tax software COBRA premium assistance credit. 2007 tax software  The credit for COBRA premium assistance payments applies to premiums paid for employees involuntarily terminated between September 1, 2008 and May 31, 2010, and to premiums paid for up to 15 months. 2007 tax software See COBRA premium assistance credit in Publication 15 (Circular E), Employer's Tax Guide. 2007 tax software You can get Publication 15 (Circular E) at IRS. 2007 tax software gov. 2007 tax software You must receive written notice from the IRS to file Form 944. 2007 tax software  If you have been filing Forms 941-SS and believe your employment taxes for the calendar year will be $1,000 or less, and you would like to file Form 944, Employer's ANNUAL Federal Tax Return, instead of Forms 941-SS, you must contact the IRS to request to file Form 944. 2007 tax software You must receive written notice from the IRS to file Form 944 instead of Forms 941-SS before you may file this form. 2007 tax software For more information on requesting to file Form 944 visit IRS. 2007 tax software gov and enter “file employment taxes annually” in the search box. 2007 tax software Federal employers in the CNMI. 2007 tax software  The U. 2007 tax software S. 2007 tax software Treasury Department and the CNMI Division of Revenue and Taxation entered into an agreement under 5 USC 5517 in December 2006. 2007 tax software Under this agreement, all federal employers (including the Department of Defense) are required to withhold CNMI income taxes (rather than federal income taxes) and deposit the CNMI taxes with the CNMI Treasury for employees who are subject to CNMI taxes and whose regular place of federal employment is in the CNMI. 2007 tax software Federal employers are also required to file quarterly and annual reports with the CNMI Division of Revenue and Taxation. 2007 tax software For questions, contact the CNMI Division of Revenue and Taxation. 2007 tax software Change of address. 2007 tax software  Use Form 8822-B to notify the IRS of an address change. 2007 tax software Do not mail Form 8822-B with your employment tax return. 2007 tax software Federal tax deposits must be made by electronic funds transfer. 2007 tax software  You must use electronic funds transfer to make all federal tax deposits. 2007 tax software Generally, electronic fund transfers are made using the Electronic Federal Tax Payment System (EFTPS). 2007 tax software If you do not want to use EFTPS, you can arrange for your tax professional, financial institution, payroll service, or other trusted third party to make electronic deposits on your behalf. 2007 tax software Also, you may arrange for your financial institution to initiate a same-day wire payment on your behalf. 2007 tax software EFTPS is a free service provided by the Department of Treasury. 2007 tax software Services provided by your tax professional, financial institution, payroll service, or other third party may have a fee. 2007 tax software For more information on making federal tax deposits, see How To Deposit in section 8. 2007 tax software For more information about EFTPS or to enroll in EFTPS, visit the EFTPS website at www. 2007 tax software eftps. 2007 tax software gov or call 1-800-555-4477 (U. 2007 tax software S. 2007 tax software Virgin Islands only) or 303-967-5916 (toll call) or 1-800-733-4829 (TDD). 2007 tax software Additional information about EFTPS is also available in Publication 966, Electronic Federal Tax Payment System: A Guide To Getting Started. 2007 tax software Electronic filing and payment. 2007 tax software  Using electronic options can make filing a return and paying your federal tax easier. 2007 tax software Use the Electronic Federal Tax Payment System (EFTPS) to make deposits or pay in full, whether you rely on a tax professional or prepare your own taxes. 2007 tax software You can use IRS e-file to file certain returns. 2007 tax software If there is a balance due on the return, you can e-file and e-pay in a single step by authorizing an electronic funds withdrawal (EFW) from your bank account while e-filing. 2007 tax software Do not use EFW to pay taxes that are required to be deposited. 2007 tax software Visit the IRS website at www. 2007 tax software irs. 2007 tax software gov/efile for more information on filing electronically. 2007 tax software For more information on paying your taxes using EFW, visit the IRS website at www. 2007 tax software irs. 2007 tax software gov/e-pay. 2007 tax software A fee may be charged to file electronically. 2007 tax software For EFTPS, visit www. 2007 tax software eftps. 2007 tax software gov or call EFTPS Customer Service at 1-800-555-4477 (U. 2007 tax software S. 2007 tax software Virgin Islands only) or 303-967-5916 (toll call). 2007 tax software For electronic filing of Forms W-2AS, W-2CM, W-2GU, W-2VI, Wage and Tax Statements; W-3SS, Transmittal of Wage and Tax Statements; and W-2c, Corrected Wage and Tax Statement, visit www. 2007 tax software socialsecurity. 2007 tax software gov/employer. 2007 tax software If you are filing your tax return or paying your federal taxes electronically, a valid EIN is required. 2007 tax software If a valid EIN is not provided, the return or payment will not be processed. 2007 tax software This may result in penalties and delays in processing your return or payment. 2007 tax software Electronic option for filing Forms W-2AS, W-2CM, W-2GU, or W-2VI. 2007 tax software  Employers in American Samoa, the CNMI, Guam, and the U. 2007 tax software S. 2007 tax software Virgin Islands can now use the Social Security Administration's W-2 Online service to create, save, print, and submit up to 50 Forms W-2AS, W-2CM, W-2GU, or W-2VI at a time over the Internet. 2007 tax software Form W-3SS will be generated automatically based on your Forms W-2AS, W-2CM, W-2GU, or W-2VI. 2007 tax software For more information, visit Social Security Administration's SSA website at www. 2007 tax software ssa. 2007 tax software gov/bso/bsowelcome. 2007 tax software htm. 2007 tax software Credit or debit card payments. 2007 tax software  For information on paying your taxes with a credit or debit card, visit the IRS website at www. 2007 tax software irs. 2007 tax software gov/e-pay. 2007 tax software However, do not use credit or debit cards to make federal tax deposits. 2007 tax software Hiring new employees. 2007 tax software  Record the number and name from each new employee's social security card. 2007 tax software An employee who does not have a social security card should apply for one on Form SS-5, Application for a Social Security Card. 2007 tax software See section 3. 2007 tax software Reporting discrepancies between Forms 941-SS (or Form 944) and Forms W-2. 2007 tax software  File Schedule D (Form 941), Report of Discrepancies Caused by Acquisitions, Statutory Mergers, or Consolidations, to explain certain wage, tax, and payment discrepancies between Forms 941-SS (or Form 944), and Forms W-2 that were caused by acquisitions, statutory mergers, or consolidations. 2007 tax software For more information, see the Instructions for Schedule D (Form 941). 2007 tax software Apply for an employer identification number (EIN) online. 2007 tax software  You can apply for an EIN online by visiting IRS. 2007 tax software gov and clicking on the Apply for an EIN Online link under Tools. 2007 tax software Dishonored payments. 2007 tax software  Any form of payment that is dishonored and returned from a financial institution is subject to a penalty. 2007 tax software The penalty is $25 or 2% of the payment, whichever is more. 2007 tax software However, the penalty on dishonored payments of $24. 2007 tax software 99 or less is an amount equal to the payment. 2007 tax software For example, a dishonored payment of $18 is charged a penalty of $18. 2007 tax software Private delivery services. 2007 tax software  You can use certain private delivery services designated by the IRS to send tax returns or payments. 2007 tax software The list includes only the following: DHL Express (DHL): DHL Same Day Service. 2007 tax software Federal Express (FedEx): FedEx Priority Overnight, FedEx Standard Overnight, FedEx 2Day, FedEx International Priority, and FedEx International First. 2007 tax software United Parcel Service (UPS): UPS Next Day Air, UPS Next Day Air Saver, UPS 2nd Day Air, UPS 2nd Day Air A. 2007 tax software M. 2007 tax software , UPS Worldwide Express Plus, and UPS Worldwide Express. 2007 tax software For the IRS mailing address to use if you are using a private delivery service, go to IRS. 2007 tax software gov and enter “private delivery service” in the search box. 2007 tax software Your private delivery service can tell you how to get written proof of the mailing date. 2007 tax software Private delivery services cannot deliver items to P. 2007 tax software O. 2007 tax software boxes. 2007 tax software You must use the U. 2007 tax software S. 2007 tax software Postal Service to mail any item to an IRS P. 2007 tax software O. 2007 tax software box address. 2007 tax software Recordkeeping. 2007 tax software  Keep all records of employment taxes for 4 years. 2007 tax software These should be available for IRS review. 2007 tax software There is no required format for such records, but they should include your EIN; the amounts and dates of all wage payments (including fringe benefits) and tips reported; the names, addresses, and occupations of employees receiving such payments and their social security numbers; copies of returns filed; dates of employment; and the dates and amounts of deposits made. 2007 tax software Farm employers must keep a record of the name, permanent address, and EIN of each crew leader. 2007 tax software See Farm Crew Leaders in section 2. 2007 tax software Disregarded entities and qualified subchapter S subsidiaries (QSubs). 2007 tax software  Eligible single-owner disregarded entities and QSubs are treated as separate entities for employment tax purposes. 2007 tax software Eligible single-member entities that have not elected to be taxed as corporations must report and pay employment taxes on wages paid to their employees using the entities' own names and EINs. 2007 tax software See Regulations sections 1. 2007 tax software 1361-4(a)(7) and 301. 2007 tax software 7701-2(c)(2)(iv). 2007 tax software Photographs of missing children. 2007 tax software  The IRS is a proud partner with the National Center for Missing and Exploited Children. 2007 tax software Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. 2007 tax software You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. 2007 tax software Calendar   If any date for filing a return, furnishing a form, or depositing taxes falls on a Saturday, Sunday, or legal holiday, the due date is the next business day. 2007 tax software A statewide legal holiday delays a filing due date only if the IRS office where you are required to file is located in that state. 2007 tax software However, a statewide legal holiday does not delay the due date of federal tax deposits. 2007 tax software See Deposits on Business Days Only in section 8. 2007 tax software For any filing due date, you will meet the “file” or “furnish” requirement if the envelope containing the return or form is properly addressed, contains sufficient postage, and is postmarked by the U. 2007 tax software S. 2007 tax software Postal Service on or before the due date, or sent by an IRS-designated delivery service on or before the due date. 2007 tax software See Private delivery services under Reminders. 2007 tax software The following are important dates and responsibilities. 2007 tax software Also see Publication 509, Tax Calendars. 2007 tax software By January 31. 2007 tax software   Furnish wage and tax statements to employees. 2007 tax software Give each employee a completed Form W-2AS, W-2CM, W-2GU, or W-2VI. 2007 tax software See section 10 for more information. 2007 tax software File Form 943, Employer's Annual Federal Tax Return for Agricultural Employees, with the IRS. 2007 tax software If you deposited all Form 943 taxes when due, you have 10 additional calendar days to file. 2007 tax software U. 2007 tax software S. 2007 tax software Virgin Islands employers only must file Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return, with the IRS. 2007 tax software Pay or deposit (if more than $500) any balance of the tax due. 2007 tax software If you deposited the full amount of taxes when due, you have 10 additional calendar days to file. 2007 tax software File Form 944 with the IRS if you were notified by the IRS to file Form 944 instead of quarterly Forms 941-SS. 2007 tax software If you deposited the full amount of taxes when due, you have 10 additional calendar days to file. 2007 tax software By February 28. 2007 tax software  File paper wage and tax statements with the Social Security Administration (SSA). 2007 tax software File Copy A of Forms W-2AS, W-2CM, W-2GU, or W-2VI, and Form W-3SS with the Social Security Administration (SSA). 2007 tax software For electronically filed returns, see By March 31 next. 2007 tax software By March 31. 2007 tax software  File electronic Forms W-2AS, W-2CM, W-2GU, or W-2VI with the SSA. 2007 tax software Visit the SSA's Reporting Instructions & Information webpage at www. 2007 tax software socialsecurity. 2007 tax software gov/employer for more information. 2007 tax software By April 30, July 31, October 31, and January 31. 2007 tax software  File Form 941-SS with the IRS. 2007 tax software If you deposited the full amount of taxes when due, you have 10 additional calendar days to file. 2007 tax software Do not file Forms 941-SS for these quarters if you have been notified to file Form 944 and you did not request to file quarterly Forms 941-SS. 2007 tax software Deposit FUTA tax for the quarter (including any amount carried over from other quarters) if over $500. 2007 tax software If $500 or less, carry it over to the next quarter. 2007 tax software See section 11 for more information. 2007 tax software Prev  Up  Next   Home   More Online Publications
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Is My Residential Rental Income Taxable and/or Are My Expenses Deductible?

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  • Type of rental payment(s) received
  • Type of rental expense(s) paid
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Page Last Reviewed or Updated: 14-Feb-2014

The 2007 Tax Software

2007 tax software Publication 502 - Main Content Table of Contents What Are Medical Expenses? What Expenses Can You Include This Year?Community property states. 2007 tax software 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. 2007 tax software These expenses include payments for legal medical services rendered by physicians, surgeons, dentists, and other medical practitioners. 2007 tax software They include the costs of equipment, supplies, and diagnostic devices needed for these purposes. 2007 tax software Medical care expenses must be primarily to alleviate or prevent a physical or mental defect or illness. 2007 tax software They do not include expenses that are merely beneficial to general health, such as vitamins or a vacation. 2007 tax software 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. 2007 tax software Medical expenses also include amounts paid for qualified long-term care services and limited amounts paid for any qualified long-term care insurance contract. 2007 tax software 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. 2007 tax software (But see Decedent under Whose Medical Expenses Can You Include, for an exception. 2007 tax software ) If you pay medical expenses by check, the day you mail or deliver the check generally is the date of payment. 2007 tax software 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. 2007 tax software 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. 2007 tax software 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. 2007 tax software S. 2007 tax software Individual Income Tax Return, for the year in which you overlooked the expense. 2007 tax software Do not claim the expense on this year's return. 2007 tax software 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. 2007 tax software You cannot include medical expenses that were paid by insurance companies or other sources. 2007 tax software This is true whether the payments were made directly to you, to the patient, or to the provider of the medical services. 2007 tax software Separate returns. 2007 tax software   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. 2007 tax software 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. 2007 tax software Community property states. 2007 tax software   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. 2007 tax software Generally, each of you should include half the expenses. 2007 tax software If medical expenses are paid out of the separate funds of one individual, only the individual who paid the medical expenses can include them. 2007 tax software If you live in a community property state and are not filing a joint return, see Publication 555, Community Property. 2007 tax software 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. 2007 tax software 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. 2007 tax software 5% of your AGI. 2007 tax software Example. 2007 tax software You are unmarried and were born after January 2, 1949, and your AGI is $40,000, 10% of which is $4,000. 2007 tax software You paid medical expenses of $2,500. 2007 tax software You cannot deduct any of your medical expenses because they are not more than 10% of your AGI. 2007 tax software 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. 2007 tax software There are different rules for decedents and for individuals who are the subject of multiple support agreements. 2007 tax software See Support claimed under a multiple support agreement , later under Qualifying Relative. 2007 tax software Spouse You can include medical expenses you paid for your spouse. 2007 tax software 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. 2007 tax software Example 1. 2007 tax software Mary received medical treatment before she married Bill. 2007 tax software Bill paid for the treatment after they married. 2007 tax software Bill can include these expenses in figuring his medical expense deduction even if Bill and Mary file separate returns. 2007 tax software If Mary had paid the expenses, Bill could not include Mary's expenses in his separate return. 2007 tax software Mary would include the amounts she paid during the year in her separate return. 2007 tax software If they filed a joint return, the medical expenses both paid during the year would be used to figure their medical expense deduction. 2007 tax software Example 2. 2007 tax software This year, John paid medical expenses for his wife Louise, who died last year. 2007 tax software John married Belle this year and they file a joint return. 2007 tax software 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. 2007 tax software Dependent You can include medical expenses you paid for your dependent. 2007 tax software 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. 2007 tax software A person generally qualifies as your dependent for purposes of the medical expense deduction if both of the following requirements are met. 2007 tax software The person was a qualifying child (defined later) or a qualifying relative (defined later), and The person was a U. 2007 tax software S. 2007 tax software citizen or national or a resident of the United States, Canada, or Mexico. 2007 tax software If your qualifying child was adopted, see Exception for adopted child , later. 2007 tax software 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. 2007 tax software Exception for adopted child. 2007 tax software   If you are a U. 2007 tax software S. 2007 tax software 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. 2007 tax software S. 2007 tax software citizen or national, or a resident of the United States, Canada, or Mexico. 2007 tax software 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. 2007 tax software Adopted child. 2007 tax software   A legally adopted child is treated as your own child. 2007 tax software This child includes a child lawfully placed with you for legal adoption. 2007 tax software   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. 2007 tax software   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. 2007 tax software   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. 2007 tax software    You may be able to take a credit for other expenses related to an adoption. 2007 tax software See the Instructions for Form 8839, Qualified Adoption Expenses, for more information. 2007 tax software Child of divorced or separated parents. 2007 tax software   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. 2007 tax software 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. 2007 tax software This does not apply if the child's exemption is being claimed under a multiple support agreement (discussed later). 2007 tax software 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. 2007 tax software 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. 2007 tax software Support claimed under a multiple support agreement. 2007 tax software   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. 2007 tax software 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. 2007 tax software   Any medical expenses paid by others who joined you in the agreement cannot be included as medical expenses by anyone. 2007 tax software However, you can include the entire unreimbursed amount you paid for medical expenses. 2007 tax software Example. 2007 tax software You and your three brothers each provide one-fourth of your mother's total support. 2007 tax software Under a multiple support agreement, you treat your mother as your dependent. 2007 tax software You paid all of her medical expenses. 2007 tax software Your brothers repaid you for three-fourths of these expenses. 2007 tax software In figuring your medical expense deduction, you can include only one-fourth of your mother's medical expenses. 2007 tax software Your brothers cannot include any part of the expenses. 2007 tax software 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. 2007 tax software 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. 2007 tax software This includes expenses for the decedent's spouse and dependents as well as for the decedent. 2007 tax software 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. 2007 tax software The expenses must be paid within the 1-year period beginning with the day after the date of death. 2007 tax software 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. 2007 tax software 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. 2007 tax software 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. 2007 tax software 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. 2007 tax software Example. 2007 tax software John properly filed his 2012 income tax return. 2007 tax software He died in 2013 with unpaid medical expenses of $1,500 from 2012 and $1,800 in 2013. 2007 tax software 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. 2007 tax software The $1,800 of medical expenses from 2013 can be included on the decedent's final return for 2013. 2007 tax software 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. 2007 tax software 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. 2007 tax software What Medical Expenses Are Includible? Following is a list of items that you can include in figuring your medical expense deduction. 2007 tax software The items are listed in alphabetical order. 2007 tax software This list does not include all possible medical expenses. 2007 tax software To determine if an expense not listed can be included in figuring your medical expense deduction, see What Are Medical Expenses , earlier. 2007 tax software Abortion You can include in medical expenses the amount you pay for a legal abortion. 2007 tax software Acupuncture You can include in medical expenses the amount you pay for acupuncture. 2007 tax software Alcoholism You can include in medical expenses amounts you pay for an inpatient's treatment at a therapeutic center for alcohol addiction. 2007 tax software This includes meals and lodging provided by the center during treatment. 2007 tax software 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. 2007 tax software Ambulance You can include in medical expenses amounts you pay for ambulance service. 2007 tax software Annual Physical Examination See Physical Examination , later. 2007 tax software Artificial Limb You can include in medical expenses the amount you pay for an artificial limb. 2007 tax software Artificial Teeth You can include in medical expenses the amount you pay for artificial teeth. 2007 tax software Bandages You can include in medical expenses the cost of medical supplies such as bandages. 2007 tax software Birth Control Pills You can include in medical expenses the amount you pay for birth control pills prescribed by a doctor. 2007 tax software Body Scan You can include in medical expenses the cost of an electronic body scan. 2007 tax software 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. 2007 tax software Breast Pumps and Supplies You can include in medical expenses the cost of breast pumps and supplies that assist lactation. 2007 tax software 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. 2007 tax software See Cosmetic Surgery , later. 2007 tax software 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. 2007 tax software The cost of permanent improvements that increase the value of your property may be partly included as a medical expense. 2007 tax software The cost of the improvement is reduced by the increase in the value of your property. 2007 tax software The difference is a medical expense. 2007 tax software If the value of your property is not increased by the improvement, the entire cost is included as a medical expense. 2007 tax software 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. 2007 tax software These improvements include, but are not limited to, the following items. 2007 tax software Constructing entrance or exit ramps for your home. 2007 tax software Widening doorways at entrances or exits to your home. 2007 tax software Widening or otherwise modifying hallways and interior doorways. 2007 tax software Installing railings, support bars, or other modifications to bathrooms. 2007 tax software Lowering or modifying kitchen cabinets and equipment. 2007 tax software Moving or modifying electrical outlets and fixtures. 2007 tax software Installing porch lifts and other forms of lifts (but elevators generally add value to the house). 2007 tax software Modifying fire alarms, smoke detectors, and other warning systems. 2007 tax software Modifying stairways. 2007 tax software Adding handrails or grab bars anywhere (whether or not in bathrooms). 2007 tax software Modifying hardware on doors. 2007 tax software Modifying areas in front of entrance and exit doorways. 2007 tax software Grading the ground to provide access to the residence. 2007 tax software Only reasonable costs to accommodate a home to a disabled condition are considered medical care. 2007 tax software Additional costs for personal motives, such as for architectural or aesthetic reasons, are not medical expenses. 2007 tax software Capital expense worksheet. 2007 tax software   Use Worksheet A to figure the amount of your capital expense to include in your medical expenses. 2007 tax software Worksheet A. 2007 tax software Capital Expense Worksheet Instructions: Use this worksheet to figure the amount, if any, of your medical expenses due to a home improvement. 2007 tax software 1. 2007 tax software Enter the amount you paid for the home improvement 1. 2007 tax software   2. 2007 tax software Enter the value of your home immediately after the improvement 2. 2007 tax software       3. 2007 tax software Enter the value of your home immediately before the improvement 3. 2007 tax software       4. 2007 tax software Subtract line 3 from line 2. 2007 tax software This is the increase in the value of your home due to the improvement 4. 2007 tax software     • If line 4 is more than or equal to line 1, you have no medical expenses due to the home improvement; stop here. 2007 tax software       • If line 4 is less than line 1, go to line 5. 2007 tax software     5. 2007 tax software Subtract line 4 from line 1. 2007 tax software These are your medical expenses due to the home improvement 5. 2007 tax software   Operation and upkeep. 2007 tax software   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. 2007 tax software This rule applies even if none or only part of the original cost of the capital asset qualified as a medical care expense. 2007 tax software Improvements to property rented by a person with a disability. 2007 tax software   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. 2007 tax software Example. 2007 tax software John has arthritis and a heart condition. 2007 tax software He cannot climb stairs or get into a bathtub. 2007 tax software On his doctor's advice, he installs a bathroom with a shower stall on the first floor of his two-story rented house. 2007 tax software The landlord did not pay any of the cost of buying and installing the special plumbing and did not lower the rent. 2007 tax software John can include in medical expenses the entire amount he paid. 2007 tax software 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. 2007 tax software Special design. 2007 tax software   You can include in medical expenses the difference between the cost of a regular car and a car specially designed to hold a wheelchair. 2007 tax software Cost of operation. 2007 tax software   The includible costs of using a car for medical reasons are explained under Transportation , later. 2007 tax software Chiropractor You can include in medical expenses fees you pay to a chiropractor for medical care. 2007 tax software Christian Science Practitioner You can include in medical expenses fees you pay to Christian Science practitioners for medical care. 2007 tax software Contact Lenses You can include in medical expenses amounts you pay for contact lenses needed for medical reasons. 2007 tax software You can also include the cost of equipment and materials required for using contact lenses, such as saline solution and enzyme cleaner. 2007 tax software See Eyeglasses and Eye Surgery , later. 2007 tax software Crutches You can include in medical expenses the amount you pay to buy or rent crutches. 2007 tax software Dental Treatment You can include in medical expenses the amounts you pay for the prevention and alleviation of dental disease. 2007 tax software 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. 2007 tax software Treatment to alleviate dental disease include services of a dentist for procedures such as X-rays, fillings, braces, extractions, dentures, and other dental ailments. 2007 tax software But see Teeth Whitening under What Expenses Are Not Includible, later. 2007 tax software Diagnostic Devices You can include in medical expenses the cost of devices used in diagnosing and treating illness and disease. 2007 tax software Example. 2007 tax software You have diabetes and use a blood sugar test kit to monitor your blood sugar level. 2007 tax software You can include the cost of the blood sugar test kit in your medical expenses. 2007 tax software 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. 2007 tax software (See Publication 503, Child and Dependent Care Expenses. 2007 tax software ) 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. 2007 tax software Drug Addiction You can include in medical expenses amounts you pay for an inpatient's treatment at a therapeutic center for drug addiction. 2007 tax software This includes meals and lodging at the center during treatment. 2007 tax software Drugs See Medicines , later. 2007 tax software Eye Exam You can include in medical expenses the amount you pay for eye examinations. 2007 tax software Eyeglasses You can include in medical expenses amounts you pay for eyeglasses and contact lenses needed for medical reasons. 2007 tax software See Contact Lenses , earlier, for more information. 2007 tax software 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. 2007 tax software Fertility Enhancement You can include in medical expenses the cost of the following procedures to overcome an inability to have children. 2007 tax software Procedures such as in vitro fertilization (including temporary storage of eggs or sperm). 2007 tax software Surgery, including an operation to reverse prior surgery that prevented the person operated on from having children. 2007 tax software Founder's Fee See Lifetime Care—Advance Payments , later. 2007 tax software 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. 2007 tax software 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. 2007 tax software 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. 2007 tax software 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. 2007 tax software These amounts are treated as medical insurance premiums. 2007 tax software See Insurance Premiums , later. 2007 tax software Hearing Aids You can include in medical expenses the cost of a hearing aid and batteries, repairs, and maintenance needed to operate it. 2007 tax software Home Care See Nursing Services , later. 2007 tax software Home Improvements See Capital Expenses , earlier. 2007 tax software 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. 2007 tax software This includes amounts paid for meals and lodging. 2007 tax software Also see Lodging , later. 2007 tax software Insurance Premiums You can include in medical expenses insurance premiums you pay for policies that cover medical care. 2007 tax software 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). 2007 tax software See Qualified Long-Term Care Insurance Contracts under Long-Term Care, later. 2007 tax software 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. 2007 tax software The cost of the medical part must be separately stated in the insurance contract or given to you in a separate statement. 2007 tax software Health coverage tax credit. 2007 tax software   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. 2007 tax software 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. 2007 tax software S. 2007 tax software Treasury–HCTC,” or Any health coverage tax credit advance payments shown on Form 1099-H, Health Coverage Tax Credit (HCTC) Advance Payments. 2007 tax software 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. 2007 tax software 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. 2007 tax software Example. 2007 tax software You are a federal employee participating in the premium conversion plan of the Federal Employee Health Benefits (FEHB) program. 2007 tax software Your share of the FEHB premium is paid by making a pre-tax reduction in your salary. 2007 tax software 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. 2007 tax software Long-term care services. 2007 tax software   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. 2007 tax software This amount will be reported as wages on your Form W-2. 2007 tax software Retired public safety officers. 2007 tax software   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. 2007 tax software This applies only to distributions that would otherwise be included in income. 2007 tax software Health reimbursement arrangement (HRA). 2007 tax software   If you have medical expenses that are reimbursed by a health reimbursement arrangement, you cannot include those expenses in your medical expenses. 2007 tax software This is because an HRA is funded solely by the employer. 2007 tax software 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. 2007 tax software The payroll tax paid for Medicare A is not a medical expense. 2007 tax software 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. 2007 tax software In this situation you can include the premiums you paid for Medicare A as a medical expense. 2007 tax software Medicare B Medicare B is a supplemental medical insurance. 2007 tax software Premiums you pay for Medicare B are a medical expense. 2007 tax software Check the information you received from the Social Security Administration to find out your premium. 2007 tax software Medicare D Medicare D is a voluntary prescription drug insurance program for persons with Medicare A or B. 2007 tax software You can include as a medical expense premiums you pay for Medicare D. 2007 tax software 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). 2007 tax software 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. 2007 tax software 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. 2007 tax software You can include this cost of continuing participation in the health plan as a medical expense. 2007 tax software 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. 2007 tax software You cannot include this cost of continuing participation in that health plan as a medical expense. 2007 tax software 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. 2007 tax software , 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. 2007 tax software Taxes imposed by any governmental unit, such as Medicare taxes, are not insurance premiums. 2007 tax software Coverage for nondependents. 2007 tax software   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. 2007 tax software 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. 2007 tax software  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. 2007 tax software 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. 2007 tax software Laboratory Fees You can include in medical expenses the amounts you pay for laboratory fees that are part of medical care. 2007 tax software Lactation Expenses See Breast Pumps and Supplies , earlier. 2007 tax software 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. 2007 tax software These surfaces must be in poor repair (peeling or cracking) or within the child's reach. 2007 tax software The cost of repainting the scraped area is not a medical expense. 2007 tax software If, instead of removing the paint, you cover the area with wallboard or paneling, treat these items as capital expenses. 2007 tax software See Capital Expenses , earlier. 2007 tax software Do not include the cost of painting the wallboard as a medical expense. 2007 tax software Learning Disability See Special Education , later. 2007 tax software Legal Fees You can include in medical expenses legal fees you paid that are necessary to authorize treatment for mental illness. 2007 tax software 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. 2007 tax software 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. 2007 tax software The part of the payment you include is the amount properly allocable to medical care. 2007 tax software 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. 2007 tax software You can use a statement from the retirement home to prove the amount properly allocable to medical care. 2007 tax software The statement must be based either on the home's prior experience or on information from a comparable home. 2007 tax software Dependents with disabilities. 2007 tax software   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. 2007 tax software The payments must be a condition for the institution's future acceptance of your child and must not be refundable. 2007 tax software Payments for future medical care. 2007 tax software   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. 2007 tax software This rule does not apply in situations where the future care is purchased in connection with obtaining lifetime care of the type described earlier. 2007 tax software 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. 2007 tax software See Nursing Home , later. 2007 tax software You may be able to include in medical expenses the cost of lodging not provided in a hospital or similar institution. 2007 tax software You can include the cost of such lodging while away from home if all of the following requirements are met. 2007 tax software The lodging is primarily for and essential to medical care. 2007 tax software 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. 2007 tax software The lodging is not lavish or extravagant under the circumstances. 2007 tax software There is no significant element of personal pleasure, recreation, or vacation in the travel away from home. 2007 tax software The amount you include in medical expenses for lodging cannot be more than $50 for each night for each person. 2007 tax software You can include lodging for a person traveling with the person receiving the medical care. 2007 tax software 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. 2007 tax software Meals are not included. 2007 tax software 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. 2007 tax software 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. 2007 tax software 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. 2007 tax software Chronically ill individual. 2007 tax software   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. 2007 tax software 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. 2007 tax software Activities of daily living are eating, toileting, transferring, bathing, dressing, and continence. 2007 tax software He or she requires substantial supervision to be protected from threats to health and safety due to severe cognitive impairment. 2007 tax software Maintenance and personal care services. 2007 tax software    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). 2007 tax software 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. 2007 tax software 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. 2007 tax software The amount of qualified long-term care premiums you can include is limited. 2007 tax software You can include the following as medical expenses on Schedule A (Form 1040). 2007 tax software Qualified long-term care premiums up to the following amounts. 2007 tax software Age 40 or under – $360. 2007 tax software Age 41 to 50 – $680. 2007 tax software Age 51 to 60 – $1,360. 2007 tax software Age 61 to 70 – $3,640. 2007 tax software Age 71 or over – $4,550. 2007 tax software Unreimbursed expenses for qualified long-term care services. 2007 tax software Note. 2007 tax software The limit on premiums is for each person. 2007 tax software 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. 2007 tax software 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. 2007 tax software You cannot include in medical expenses the cost of meals that are not part of inpatient care. 2007 tax software Also see Weight-Loss Program and Nutritional Supplements , later. 2007 tax software 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. 2007 tax software The costs of the medical conference must be primarily for and necessary to the medical care of you, your spouse, or your dependent. 2007 tax software The majority of the time spent at the conference must be spent attending sessions on medical information. 2007 tax software The cost of meals and lodging while attending the conference is not deductible as a medical expense. 2007 tax software 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. 2007 tax software Medicines You can include in medical expenses amounts you pay for prescribed medicines and drugs. 2007 tax software A prescribed drug is one that requires a prescription by a doctor for its use by an individual. 2007 tax software You can also include amounts you pay for insulin. 2007 tax software Except for insulin, you cannot include in medical expenses amounts you pay for a drug that is not prescribed. 2007 tax software Imported medicines and drugs. 2007 tax software   If you imported medicines or drugs from other countries, see Medicines and Drugs From Other Countries , under What Expenses Are Not Includible, later. 2007 tax software 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. 2007 tax software This includes the cost of meals and lodging in the home if a principal reason for being there is to get medical care. 2007 tax software Do not include the cost of meals and lodging if the reason for being in the home is personal. 2007 tax software You can, however, include in medical expenses the part of the cost that is for medical or nursing care. 2007 tax software Nursing Services You can include in medical expenses wages and other amounts you pay for nursing services. 2007 tax software The services need not be performed by a nurse as long as the services are of a kind generally performed by a nurse. 2007 tax software 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. 2007 tax software These services can be provided in your home or another care facility. 2007 tax software Generally, only the amount spent for nursing services is a medical expense. 2007 tax software 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. 2007 tax software For example, because of your medical condition you pay a visiting nurse $300 per week for medical and household services. 2007 tax software She spends 10% of her time doing household services such as washing dishes and laundry. 2007 tax software You can include only $270 per week as medical expenses. 2007 tax software The $30 (10% × $300) allocated to household services cannot be included. 2007 tax software However, certain maintenance or personal care services provided for qualified long-term care can be included in medical expenses. 2007 tax software See Maintenance and personal care services under Long-Term Care, earlier. 2007 tax software 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. 2007 tax software See Publication 503. 2007 tax software You can also include in medical expenses part of the amount you pay for that attendant's meals. 2007 tax software Divide the food expense among the household members to find the cost of the attendant's food. 2007 tax software Then divide that cost in the same manner as in the preceding paragraph. 2007 tax software If you had to pay additional amounts for household upkeep because of the attendant, you can include the extra amounts with your medical expenses. 2007 tax software This includes extra rent or utilities you pay because you moved to a larger apartment to provide space for the attendant. 2007 tax software Employment taxes. 2007 tax software   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. 2007 tax software 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. 2007 tax software For information on employment tax responsibilities of household employers, see Publication 926, Household Employer's Tax Guide. 2007 tax software Operations You can include in medical expenses amounts you pay for legal operations that are not for unnecessary cosmetic surgery. 2007 tax software See Cosmetic Surgery under What Expenses Are Not Includible, later. 2007 tax software Optometrist See Eyeglasses , earlier. 2007 tax software Organ Donors See Transplants , later. 2007 tax software Osteopath You can include in medical expenses amounts you pay to an osteopath for medical care. 2007 tax software Oxygen You can include in medical expenses amounts you pay for oxygen and oxygen equipment to relieve breathing problems caused by a medical condition. 2007 tax software Physical Examination You can include in medical expenses the amount you pay for an annual physical examination and diagnostic tests by a physician. 2007 tax software You do not have to be ill at the time of the examination. 2007 tax software 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. 2007 tax software Prosthesis See Artificial Limb and Breast Reconstruction Surgery , earlier. 2007 tax software Psychiatric Care You can include in medical expenses amounts you pay for psychiatric care. 2007 tax software This includes the cost of supporting a mentally ill dependent at a specially equipped medical center where the dependent receives medical care. 2007 tax software See Psychoanalysis, next, and Transportation , later. 2007 tax software Psychoanalysis You can include in medical expenses payments for psychoanalysis. 2007 tax software However, you cannot include payments for psychoanalysis that is part of required training to be a psychoanalyst. 2007 tax software Psychologist You can include in medical expenses amounts you pay to a psychologist for medical care. 2007 tax software 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. 2007 tax software 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. 2007 tax software A doctor must recommend that the child attend the school. 2007 tax software 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. 2007 tax software 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. 2007 tax software 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). 2007 tax software Also see Vasectomy , later. 2007 tax software Stop-Smoking Programs You can include in medical expenses amounts you pay for a program to stop smoking. 2007 tax software 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. 2007 tax software Surgery See Operations , earlier. 2007 tax software 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. 2007 tax software This includes teletypewriter (TTY) and telecommunications device for the deaf (TDD) equipment. 2007 tax software You can also include the cost of repairing the equipment. 2007 tax software 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. 2007 tax software This may be the cost of an adapter that attaches to a regular set. 2007 tax software 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. 2007 tax software Therapy You can include in medical expenses amounts you pay for therapy received as medical treatment. 2007 tax software 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. 2007 tax software This includes transportation. 2007 tax software You can include any expenses you pay for the medical care of a donor in connection with the donating of an organ. 2007 tax software This includes transportation. 2007 tax software Transportation You can include in medical expenses amounts paid for transportation primarily for, and essential to, medical care. 2007 tax software 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. 2007 tax software Car expenses. 2007 tax software   You can include out-of-pocket expenses, such as the cost of gas and oil, when you use a car for medical reasons. 2007 tax software You cannot include depreciation, insurance, general repair, or maintenance expenses. 2007 tax software   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. 2007 tax software    You can also include parking fees and tolls. 2007 tax software You can add these fees and tolls to your medical expenses whether you use actual expenses or the standard mileage rate. 2007 tax software Example. 2007 tax software In 2013, Bill Jones drove 2,800 miles for medical reasons. 2007 tax software He spent $500 for gas, $30 for oil, and $100 for tolls and parking. 2007 tax software He wants to figure the amount he can include in medical expenses both ways to see which gives him the greater deduction. 2007 tax software He figures the actual expenses first. 2007 tax software He adds the $500 for gas, the $30 for oil, and the $100 for tolls and parking for a total of $630. 2007 tax software He then figures the standard mileage amount. 2007 tax software He multiplies 2,800 miles by 24 cents a mile for a total of $672. 2007 tax software He then adds the $100 tolls and parking for a total of $772. 2007 tax software 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. 2007 tax software Transportation expenses you cannot include. 2007 tax software    You cannot include in medical expenses the cost of transportation in the following situations. 2007 tax software Going to and from work, even if your condition requires an unusual means of transportation. 2007 tax software Travel for purely personal reasons to another city for an operation or other medical care. 2007 tax software Travel that is merely for the general improvement of one's health. 2007 tax software The costs of operating a specially equipped car for other than medical reasons. 2007 tax software 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. 2007 tax software You may be able to include up to $50 for each night for each person. 2007 tax software You can include lodging for a person traveling with the person receiving the medical care. 2007 tax software 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. 2007 tax software Meals are not included. 2007 tax software See Lodging , earlier. 2007 tax software 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. 2007 tax software However, see Medical Conferences , earlier. 2007 tax software Tuition Under special circumstances, you can include charges for tuition in medical expenses. 2007 tax software See Special Education , earlier. 2007 tax software 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. 2007 tax software Vasectomy You can include in medical expenses the amount you pay for a vasectomy. 2007 tax software Vision Correction Surgery See Eye Surgery , earlier. 2007 tax software 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). 2007 tax software This includes fees you pay for membership in a weight reduction group as well as fees for attendance at periodic meetings. 2007 tax software 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. 2007 tax software 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. 2007 tax software 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. 2007 tax software 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. 2007 tax software See also Weight-Loss Program under What Expenses Are Not Includible, later. 2007 tax software 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. 2007 tax software The cost of operating and maintaining the wheelchair is also a medical expense. 2007 tax software 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. 2007 tax software X-ray You can include in medical expenses amounts you pay for X-rays for medical reasons. 2007 tax software What Expenses Are Not Includible? Following is a list of some items that you cannot include in figuring your medical expense deduction. 2007 tax software The items are listed in alphabetical order. 2007 tax software 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. 2007 tax software Also, any expense allowed as a childcare credit cannot be treated as an expense paid for medical care. 2007 tax software Controlled Substances You cannot include in medical expenses amounts you pay for controlled substances (such as marijuana, laetrile, etc. 2007 tax software ), even if such substances are legalized by state law. 2007 tax software Such substances are not legal under federal law and cannot be included in medical expenses. 2007 tax software Cosmetic Surgery Generally, you cannot include in medical expenses the amount you pay for unnecessary cosmetic surgery. 2007 tax software 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. 2007 tax software You generally cannot include in medical expenses the amount you pay for procedures such as face lifts, hair transplants, hair removal (electrolysis), and liposuction. 2007 tax software 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. 2007 tax software Example. 2007 tax software An individual undergoes surgery that removes a breast as part of treatment for cancer. 2007 tax software She pays a surgeon to reconstruct the breast. 2007 tax software The surgery to reconstruct the breast corrects a deformity directly related to the disease. 2007 tax software The cost of the surgery is includible in her medical expenses. 2007 tax software Dancing Lessons You cannot include in medical expenses the cost of dancing lessons, swimming lessons, etc. 2007 tax software , even if they are recommended by a doctor, if they are only for the improvement of general health. 2007 tax software 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. 2007 tax software Electrolysis or Hair Removal See Cosmetic Surgery , earlier. 2007 tax software 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. 2007 tax software Funeral Expenses You cannot include in medical expenses amounts you pay for funerals. 2007 tax software 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. 2007 tax software 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. 2007 tax software Hair Transplant See Cosmetic Surgery , earlier. 2007 tax software 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. 2007 tax software You cannot include in medical expenses the cost of membership in any club organized for business, pleasure, recreation, or other social purpose. 2007 tax software 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. 2007 tax software For more information, see Health Coverage Tax Credit , later. 2007 tax software Health Savings Accounts You cannot include in medical expenses any payment or distribution for medical expenses out of a health savings account. 2007 tax software Contributions to health savings accounts are deducted separately. 2007 tax software See Publication 969. 2007 tax software Household Help You cannot include in medical expenses the cost of household help, even if such help is recommended by a doctor. 2007 tax software This is a personal expense that is not deductible. 2007 tax software However, you may be able to include certain expenses paid to a person providing nursing-type services. 2007 tax software For more information, see Nursing Services , earlier under What Medical Expenses Are Includible. 2007 tax software Also, certain maintenance or personal care services provided for qualified long-term care can be included in medical expenses. 2007 tax software For more information, see Long-Term Care , earlier under What Medical Expenses Are Includible. 2007 tax software 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. 2007 tax software Insurance Premiums See Insurance Premiums under What Medical Expenses Are Includible, earlier. 2007 tax software Maternity Clothes You cannot include in medical expenses amounts you pay for maternity clothes. 2007 tax software Medical Savings Account (MSA) You cannot include in medical expenses amounts you contribute to an Archer MSA. 2007 tax software You cannot include expenses you pay for with a tax-free distribution from your Archer MSA. 2007 tax software You also cannot use other funds equal to the amount of the distribution and include the expenses. 2007 tax software For more information on Archer MSAs, see Publication 969. 2007 tax software 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. 2007 tax software You can only include the cost of a drug that was imported legally. 2007 tax software For example, you can include the cost of a prescribed drug the Food and Drug Administration announces can be legally imported by individuals. 2007 tax software 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. 2007 tax software Nonprescription Drugs and Medicines Except for insulin, you cannot include in medical expenses amounts you pay for a drug that is not prescribed. 2007 tax software Example. 2007 tax software Your doctor recommends that you take aspirin. 2007 tax software Because aspirin is a drug that does not require a physician's prescription, you cannot include its cost in your medical expenses. 2007 tax software Nutritional Supplements You cannot include in medical expenses the cost of nutritional supplements, vitamins, herbal supplements, “natural medicines,” etc. 2007 tax software unless they are recommended by a medical practitioner as treatment for a specific medical condition diagnosed by a physician. 2007 tax software Otherwise, these items are taken to maintain your ordinary good health, and are not for medical care. 2007 tax software 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. 2007 tax software For example, the cost of a toothbrush and toothpaste is a nondeductible personal expense. 2007 tax software 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. 2007 tax software 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. 2007 tax software (See Braille Books and Magazines under What Medical Expenses Are Includible, earlier. 2007 tax software ) Swimming Lessons See Dancing Lessons , earlier. 2007 tax software Teeth Whitening You cannot include in medical expenses amounts paid to whiten teeth. 2007 tax software See Cosmetic Surgery , earlier. 2007 tax software 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. 2007 tax software 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. 2007 tax software 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). 2007 tax software 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. 2007 tax software Also, you cannot include membership dues in a gym, health club, or spa. 2007 tax software 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. 2007 tax software See Weight-Loss Program under What Medical Expenses Are Includible, earlier. 2007 tax software 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. 2007 tax software 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. 2007 tax software This includes payments from Medicare. 2007 tax software 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. 2007 tax software Example. 2007 tax software You have insurance policies that cover your hospital and doctors' bills but not your nursing bills. 2007 tax software The insurance you receive for the hospital and doctors' bills is more than their charges. 2007 tax software 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. 2007 tax software Health reimbursement arrange