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Federal 1040x

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Federal 1040x

Federal 1040x Other Methods of Depreciation Table of Contents Topics - This chapter discusses: Useful Items - You may want to see: How To Figure the DeductionBasis Useful Life Salvage Value Methods To UseStraight Line Method Declining Balance Method Income Forecast Method How To Change Methods DispositionsSale or exchange. Federal 1040x Property not disposed of or abandoned. Federal 1040x Special rule for normal retirements from item accounts. Federal 1040x Abandoned property. Federal 1040x Single item accounts. Federal 1040x Multiple property account. Federal 1040x Topics - This chapter discusses: How to figure the deduction Methods to use How to change methods Dispositions Useful Items - You may want to see: Publication 544 Sales and Other Dispositions of Assets 551 Basis of Assets 583 Starting a Business and Keeping Records 946 How To Depreciate Property Form (and Instructions) 3115 Application for Change in Accounting Method 4562 Depreciation and Amortization Schedule C (Form 1040) Profit or Loss From Business If your property is being depreciated under ACRS, you must continue to use rules for depreciation that applied when you placed the property in service. Federal 1040x If your property qualified for MACRS, you must depreciate it under MACRS. Federal 1040x See Publication 946. Federal 1040x However, you cannot use MACRS for certain property because of special rules that exclude it from MACRS. Federal 1040x Also, you can elect to exclude certain property from being depreciated under MACRS. Federal 1040x Property that you cannot depreciate using MACRS includes: Intangible property, Property you can elect to exclude from MACRS that you properly depreciate under a method that is not based on a term of years, Certain public utility property, Any motion picture film or video tape, Any sound recording, and Certain real and personal property placed in service before 1987. Federal 1040x Intangible property. Federal 1040x   You cannot depreciate intangible property under ACRS or MACRS. Federal 1040x You depreciate intangible property using any other reasonable method, usually, the straight line method. Federal 1040x Note. Federal 1040x The cost of certain intangible property that you acquire after August 10, 1993, must be amortized over a 15-year period. Federal 1040x For more information, see chapter 12 of Publication 535. Federal 1040x Public utility property. Federal 1040x   The law excludes from MACRS any public utility property for which the taxpayer does not use a normalization method of accounting. Federal 1040x This type of property is subject to depreciation under a special rule. Federal 1040x Videocassettes. Federal 1040x   If you are in the videocassette rental business, you can depreciate those videocassettes purchased for rental. Federal 1040x You can depreciate the cost less salvage value of those videocassettes that have a useful life over one year using either: The straight line method, or The income forecast method. Federal 1040x The straight line method, salvage value, and useful life are discussed later under Methods To Use. Federal 1040x You can deduct in the year of purchase as a business expense the cost of any cassette that has a useful life of one year or less. Federal 1040x How To Figure the Deduction Two other reasonable methods can be used to figure your deduction for property not covered under ACRS or MACRS. Federal 1040x These methods are straight line and declining balance. Federal 1040x To figure depreciation using these methods, you must generally determine three things about the property you intend to depreciate. Federal 1040x They are: The basis, The useful life, and The estimated salvage value at the end of its useful life. Federal 1040x The amount of the deduction in any year also depends on which method of depreciation you choose. Federal 1040x Basis To deduct the proper amount of depreciation each year, first determine your basis in the property you intend to depreciate. Federal 1040x The basis used for figuring depreciation is the same as the basis that would be used for figuring the gain on a sale. Federal 1040x Your original basis is usually the purchase price. Federal 1040x However, if you acquire property in some other way, such as inheriting it, getting it as a gift, or building it yourself, you have to figure your original basis in a different way. Federal 1040x Adjusted basis. Federal 1040x   Events will often change the basis of property. Federal 1040x When this occurs, the changed basis is called the adjusted basis. Federal 1040x Some events, such as improvements you make, increase basis. Federal 1040x Events such as deducting casualty losses and depreciation decrease basis. Federal 1040x If basis is adjusted, the depreciation deduction may also have to be changed, depending on the reason for the adjustment and the method of depreciation you are using. Federal 1040x   Publication 551 explains how to figure basis for property acquired in different ways. Federal 1040x It also discusses what items increase and decrease basis, how to figure adjusted basis, and how to allocate cost if you buy several pieces of property at one time. Federal 1040x Useful Life The useful life of a piece of property is an estimate of how long you can expect to use it in your trade or business, or to produce income. Federal 1040x It is the length of time over which you will make yearly depreciation deductions of your basis in the property. Federal 1040x It is how long it will continue to be useful to you, not how long the property will last. Federal 1040x Many things affect the useful life of property, such as: Frequency of use, Age when acquired, Your repair policy, and Environmental conditions. Federal 1040x The useful life can also be affected by technological improvements, progress in the arts, reasonably foreseeable economic changes, shifting of business centers, prohibitory laws, and other causes. Federal 1040x Consider all these factors before you arrive at a useful life for your property. Federal 1040x The useful life of the same type of property varies from user to user. Federal 1040x When you determine the useful life of your property, keep in mind your own experience with similar property. Federal 1040x You can use the general experience of the industry you are in until you are able to determine a useful life of your property from your own experience. Federal 1040x Change in useful life. Federal 1040x   You base your estimate of useful life on certain facts. Federal 1040x If these facts change significantly, you can adjust your estimate of the remaining useful life. Federal 1040x However, you redetermine the estimated useful life only when the change is substantial and there is a clear reason for making the change. Federal 1040x Salvage Value It is important for you to accurately determine the correct salvage value of the property you want to depreciate. Federal 1040x You generally cannot depreciate property below a reasonable salvage value. Federal 1040x Determining salvage value. Federal 1040x   Salvage value is the estimated value of property at the end of its useful life. Federal 1040x It is what you expect to get for the property if you sell it after you can no longer use it productively. Federal 1040x You must estimate the salvage value of a piece of property when you first acquire it. Federal 1040x   Salvage value is affected both by how you use the property and how long you use it. Federal 1040x If it is your policy to dispose of property that is still in good operating condition, the salvage value can be relatively large. Federal 1040x However, if your policy is to use property until it is no longer usable, its salvage value can be its junk value. Federal 1040x Changing salvage value. Federal 1040x   Once you determine the salvage value for property, you should not change it merely because prices have changed. Federal 1040x However, if you redetermine the useful life of property, as discussed earlier under Change in useful life, you can also redetermine the salvage value. Federal 1040x When you redetermine the salvage value, take into account the facts that exist at the time. Federal 1040x Net salvage. Federal 1040x   Net salvage is the salvage value of property minus what it costs to remove it when you dispose of it. Federal 1040x You can choose either salvage value or net salvage when you figure depreciation. Federal 1040x You must consistently use the one you choose and the treatment of the costs of removal must be consistent with the practice adopted. Federal 1040x However, if the cost to remove the property is more than the estimated salvage value, then net salvage is zero. Federal 1040x Your salvage value can never be less than zero. Federal 1040x Ten percent rule. Federal 1040x   If you acquire personal property that has a useful life of 3 years or more, you can use an amount for salvage value that is less than your actual estimate. Federal 1040x You can subtract from your estimate of salvage value an amount equal to 10% of your basis in the property. Federal 1040x If salvage value is less than 10% of basis, you can ignore salvage value when you figure depreciation. Federal 1040x Methods To Use Two methods of depreciation are the straight line and declining balance methods. Federal 1040x If ACRS or MACRS does not apply, you can use one of these methods. Federal 1040x The straight line and declining balance methods discussed in this section are not figured in the same way as straight line or declining balance methods under MACRS. Federal 1040x Straight Line Method Before 1981, you could use any reasonable method for every kind of depreciable property. Federal 1040x One of these methods was the straight line method. Federal 1040x This method was also used for intangible property. Federal 1040x It lets you deduct the same amount of depreciation each year. Federal 1040x To figure your deduction, determine the adjusted basis of your property, its salvage value, and its estimated useful life. Federal 1040x Subtract the salvage value, if any, from the adjusted basis. Federal 1040x The balance is the total amount of depreciation you can take over the useful life of the property. Federal 1040x Divide the balance by the number of years remaining in the useful life. Federal 1040x This gives you the amount of your yearly depreciation deduction. Federal 1040x Unless there is a big change in adjusted basis, or useful life, this amount will stay the same throughout the time you depreciate the property. Federal 1040x If, in the first year, you use the property for less than a full year, you must prorate your depreciation deduction for the number of months in use. Federal 1040x Example. Federal 1040x In April 1994, Frank bought a franchise for $5,600. Federal 1040x It expires in 10 years. Federal 1040x This property is intangible property that cannot be depreciated under MACRS. Federal 1040x Frank depreciates the franchise under the straight line method, using a 10-year useful life and no salvage value. Federal 1040x He takes the $5,600 basis and divides that amount by 10 years ($5,600 ÷ 10 = $560, a full year's use). Federal 1040x He must prorate the $560 for his 9 months of use in 1994. Federal 1040x This gives him a deduction of $420 ($560 ÷ 9/12). Federal 1040x In 1995, Frank can deduct $560 for the full year. Federal 1040x Declining Balance Method The declining balance method allows you to recover a larger amount of the cost of the property in the early years of your use of the property. Federal 1040x The rate cannot be more than twice the straight line rate. Federal 1040x Rate of depreciation. Federal 1040x   Under this method, you must determine your declining balance rate of depreciation. Federal 1040x The initial step is to: Divide the number 1 by the useful life of your property to get a straight line rate. Federal 1040x (For example, if property has a useful life of 5 years, its normal straight line rate of depreciation is ⅕, or 20%. Federal 1040x ) Multiply this straight line rate by a number that is more than 1 but not more than 2 to determine the declining balance rate. Federal 1040x Unless there is a change in the useful life during the time you depreciate the property, the rate of depreciation generally will not change. Federal 1040x Depreciation deductions. Federal 1040x   After you determine the rate of depreciation, multiply the adjusted basis of the property by it. Federal 1040x This gives you the amount of your deduction. Federal 1040x For example, if your adjusted basis at the beginning of the first year is $10,000, and your declining balance rate is 20%, your depreciation deduction for the first year is $2,000 ($10,000 ÷ 20%). Federal 1040x To figure your depreciation deduction in the second year, you must first adjust the basis for the amount of depreciation you deducted in the first year. Federal 1040x Subtract the previous year's depreciation from your basis ($10,000 - $2,000 = $8,000). Federal 1040x Multiply this amount by the rate of depreciation ($8,000 ÷ 20% = $1,600). Federal 1040x Your depreciation deduction for the second year is $1,600. Federal 1040x   As you can see from this example, your adjusted basis in the property gets smaller each year. Federal 1040x Also, under this method, deductions are larger in the earlier years and smaller in the later years. Federal 1040x You can make a change to the straight line method without consent. Federal 1040x Salvage value. Federal 1040x   Do not subtract salvage value when you figure your yearly depreciation deductions under the declining balance method. Federal 1040x However, you cannot depreciate the property below its reasonable salvage value. Federal 1040x Determine salvage value using the rules discussed earlier, including the special 10% rule. Federal 1040x Example. Federal 1040x If your adjusted basis has been decreased to $1,000 and the rate of depreciation is 20%, your depreciation deduction should be $200. Federal 1040x But if your estimate of salvage value was $900, you can only deduct $100. Federal 1040x This is because $100 is the amount that would lower your adjusted basis to equal salvage value. Federal 1040x Income Forecast Method The income forecast method requires income projections for each videocassette or group of videocassettes. Federal 1040x You can group the videocassettes by title for making this projection. Federal 1040x You determine the depreciation by applying a fraction to the cost less salvage value of the cassette. Federal 1040x The numerator is the income from the videocassette for the tax year and the denominator is the total projected income for the cassette. Federal 1040x For more information on the income forecast method, see Revenue Ruling 60-358 in Cumulative Bulletin 1960, Volume 2, on page 68. Federal 1040x How To Change Methods In some cases, you may change your method of depreciation for property depreciated under a reasonable method. Federal 1040x If you change your method of depreciation, it is generally a change in your method of accounting. Federal 1040x You must get IRS consent before making the change. Federal 1040x However, you do not need permission for certain changes in your method of depreciation. Federal 1040x The rules discussed in this section do not apply to property depreciated under ACRS or MACRS. Federal 1040x For information on ACRS elections,see Revocation of election, in chapter 1 under Alternate ACRS Method. Federal 1040x Change to the straight line method. Federal 1040x   You can change from the declining balance method to the straight line method at any time during the useful life of your property without IRS consent. Federal 1040x However, if you have a written agreement with the IRS that prohibits a change, you must first get IRS permission. Federal 1040x When the change is made, figure depreciation based on your adjusted basis in the property at that time. Federal 1040x Your adjusted basis takes into account all previous depreciation deductions. Federal 1040x Use the estimated remaining useful life of your property at the time of change and its estimated salvage value. Federal 1040x   You can change from the declining balance method to straight line only on the original tax return for the year you first use the straight line method. Federal 1040x You cannot make the change on an amended return filed after the due date of the original return (including extensions). Federal 1040x   When you make the change, attach a statement to your tax return showing: When you acquired the property, Its original cost or other original basis, The total amount claimed for depreciation and other allowances since you acquired it, Its salvage value and remaining useful life, and A description of the property and its use. Federal 1040x   After you change to straight line, you cannot change back to the declining balance method or to any other method for a period of 10 years without written permission from the IRS. Federal 1040x Changes that require permission. Federal 1040x   For most other changes in method of depreciation, you must get permission from the IRS. Federal 1040x To request a change in method of depreciation, file Form 3115. Federal 1040x File the application within the first 180 days of the tax year the change is to become effective. Federal 1040x In most cases, there is a user fee that must accompany Form 3115. Federal 1040x See the instructions for Form 3115 to determine if a fee is required. Federal 1040x Changes granted automatically. Federal 1040x   The IRS automatically approves certain changes of a method of depreciation. Federal 1040x But, you must file Form 3115 for these automatic changes. Federal 1040x   However, IRS can deny permission if Form 3115 is not filed on time. Federal 1040x For more information on automatic changes, see Revenue Procedure 74-11, 1974-1 C. Federal 1040x B. Federal 1040x 420. Federal 1040x Changes for which approval is not automatic. Federal 1040x   The automatic change procedures do not apply to: Property or an account where you made a change in depreciation within the last 10 tax years (unless the change was made under the Class Life System), Class Life Asset Depreciation Range System, and Public utility property. Federal 1040x   You must request and receive permission for these changes. Federal 1040x To make the request, file Form 3115 during the first 180 days of the tax year for which you want the change to be effective. Federal 1040x Change from an improper method. Federal 1040x   If the IRS disallows the method you are using, you do not need permission to change to a proper method. Federal 1040x You can adopt the straight line method, or any other method that would have been permitted if you had used it from the beginning. Federal 1040x If you file your tax return using an improper method, but later file an amended return, you can use a proper method on the amended return without getting IRS permission. Federal 1040x However, you must file the amended return before the filing date for the next tax year. Federal 1040x Dispositions Retirement is the permanent withdrawal of depreciable property from use in your trade or business or for the production of income. Federal 1040x You can do this by selling, exchanging, or abandoning the item of property. Federal 1040x You can also withdraw it from use without disposing of it. Federal 1040x For example, you could place it in a supplies or scrap account. Federal 1040x Retirements can be either normal or abnormal depending on all facts and circumstances. Federal 1040x The rules discussed next do not apply to MACRS and ACRS property. Federal 1040x Normal retirement. Federal 1040x   A normal retirement is a permanent withdrawal of depreciable property from use if the following apply: The retirement is made within the useful life you estimated originally, and The property has reached a condition at which you customarily retire or would retire similar property from use. Federal 1040x A retirement is generally considered normal unless you can show that you retired the property because of a reason you did not consider when you originally estimated the useful life of the property. Federal 1040x Abnormal retirement. Federal 1040x   A retirement can be abnormal if you withdraw the property early or under other circumstances. Federal 1040x For example, if the property is damaged by a fire or suddenly becomes obsolete and is now useless. Federal 1040x Gain or loss on retirement. Federal 1040x   There are special rules for figuring the gain or loss on retirement of property. Federal 1040x The gain or loss will depend on several factors. Federal 1040x These include the type of withdrawal, if the withdrawal was from a single property or multiple property account, and if the retirement was normal or abnormal. Federal 1040x A single property account contains only one item of property. Federal 1040x A multiple property account is one in which several items have been combined with a single rate of depreciation assigned to the entire account. Federal 1040x Sale or exchange. Federal 1040x   If property is retired by sale or exchange, you figure gain or loss by the usual rules that apply to sales or other dispositions of property. Federal 1040x See Publication 544. Federal 1040x Property not disposed of or abandoned. Federal 1040x   If property is retired permanently, but not disposed of or physically abandoned, you do not recognize gain. Federal 1040x You are allowed a loss in such a case, but only if the retirement is: An abnormal retirement, A normal retirement from a single property account in which you determined the life of each item of property separately, or A normal retirement from a multiple property account in which the depreciation rate is based on the maximum expected life of the longest lived item of property and the loss occurs before the expiration of the full useful life. Federal 1040x However, you are not allowed a loss if the depreciation rate is based on the average useful life of the items of property in the account. Federal 1040x   To figure your loss, subtract the estimated salvage or fair market value of the property at the date of retirement, whichever is more, from its adjusted basis. Federal 1040x Special rule for normal retirements from item accounts. Federal 1040x   You can generally deduct losses upon retirement of a few depreciable items of property with similar useful lives, if: You account for each one in a separate account, and You use the average useful life to figure depreciation. Federal 1040x However, you cannot deduct losses if you use the average useful life to figure depreciation and they have a wide range of useful lives. Federal 1040x   If you have a large number of depreciable property items and use average useful lives to figure depreciation, you cannot deduct the losses upon normal retirements from these accounts. Federal 1040x Abandoned property. Federal 1040x   If you physically abandon property, you can deduct as a loss the adjusted basis of the property at the time of its abandonment. Federal 1040x However, your intent must be to discard the property so that you will not use it again or retrieve it for sale, exchange, or other disposition. Federal 1040x Basis of property retired. Federal 1040x   The basis for figuring gain or loss on the retirement of property is its adjusted basis at the time of retirement, as determined in the following discussions. Federal 1040x Single item accounts. Federal 1040x   If an item of property is accounted for in a single item account, the adjusted basis is the basis you would use to figure gain or loss for a sale or exchange of the property. Federal 1040x This is generally the cost or other basis of the item of property less depreciation. Federal 1040x See Publication 551. Federal 1040x Multiple property account. Federal 1040x   For a normal retirement from a multiple property account, if you figured depreciation using the average expected useful life, the adjusted basis is the salvage value estimated for the item of property when it was originally acquired. Federal 1040x If you figured depreciation using the maximum expected useful life of the longest lived item of property in the account, you must use the depreciation method used for the multiple property account and a rate based on the maximum expected useful life of the item of property retired. Federal 1040x   You make the adjustment for depreciation for an abnormal retirement from a multiple property account at the rate that would be proper if the item of property was depreciated in a single property account. Federal 1040x The method of depreciation used for the multiple property account is used. Federal 1040x You base the rate on either the average expected useful life or the maximum expected useful life of the retired item of property, depending on the method used to determine the depreciation rate for the multiple property account. Federal 1040x Prev  Up  Next   Home   More Online Publications
 
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Page Last Reviewed or Updated: 31-Mar-2014

The Federal 1040x

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