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

1. Get Answers

Your online questions are customized to your unique tax situation.

2. Maximize your Refund

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

3. E-File for FREE

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

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

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

Free State Tax Filing Turbotax Code

Fillable Form 1040xHow To Fill Out Amended Tax FormFile 2010 Tax ReturnH&r Block Tax EstimatorWww Freetaxusa Com Taxes2011Amended 2009 Tax ReturnFree Tax Preparation SitesTax Act Online 2011Turbo Tax 20061040ez OnlineH&r Block Free EfileAmended Form 1040xDownload 1040x FormHow To Ammend TaxesTurbo Tax Ez FormFree Federal Tax Filing 2011Schedule C Ez Form2013 Amended 1040Tax Adjustment FormAmend Tax Return OnlineAmend 2013 Tax Return2012 Amended 1040xH And R Block Tax1040 Ez InstructionsEfile Tax Returns2013 Amended Tax ReturnIrs 1040ez InstructionsFile Your Taxes For Free940 Tax Form 2012Free 1040ez Instructions2012 Ez Tax FormIrs 1040ez 20102012 1040ez FormMinimum Earnings For Filing TaxesFederal Tax Forms 2010Taxes LateFederal Income Tax AmendmentAmending A 2011 Tax ReturnFree Tax Estimator 2011Tax Calculator 2012

Free State Tax Filing Turbotax Code

Free state tax filing turbotax code 2. Free state tax filing turbotax code   Accounting Methods Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Accounting MethodsCash Method Accrual Method Farm Inventory Cash Versus Accrual Method Special Methods of Accounting Combination Method Changes in Methods of Accounting Introduction You must use an accounting method that clearly shows your income and expenses. Free state tax filing turbotax code You must also figure your taxable income and file an income tax return for an annual accounting period called a tax year. Free state tax filing turbotax code This chapter discusses accounting methods. Free state tax filing turbotax code For information on accounting periods, see Publication 538, Accounting Periods and Methods, and the Instructions for Form 1128, Application To Adopt, Change, or Retain a Tax Year. Free state tax filing turbotax code Topics - This chapter discusses: Cash method Accrual method Farm inventory Special methods of accounting Changes in methods of accounting Useful Items - You may want to see: Publication 538 Accounting Periods and Methods 535 Business Expenses Form (and Instructions) 1128 Application To Adopt, Change, or Retain a Tax Year 3115 Application for Change in Accounting Method See chapter 16 for information about getting publications and forms. Free state tax filing turbotax code Accounting Methods An accounting method is a set of rules used to determine when and how your income and expenses are reported on your tax return. Free state tax filing turbotax code Your accounting method includes not only your overall method of accounting, but also the accounting treatment you use for any material item. Free state tax filing turbotax code A material item is one that affects the proper time for inclusion of income or allowance of a deduction. Free state tax filing turbotax code An item considered material for financial statement purposes is generally also considered material for income tax purposes. Free state tax filing turbotax code See Publication 538 for more information. Free state tax filing turbotax code You generally choose an accounting method for your farm business when you file your first income tax return that includes a Schedule F (Form 1040), Profit or Loss From Farming. Free state tax filing turbotax code If you later want to change your accounting method, you generally must get IRS approval. Free state tax filing turbotax code How to obtain IRS approval is discussed later under Changes in Methods of Accounting . Free state tax filing turbotax code Types of accounting methods. Free state tax filing turbotax code   Generally, you can use any of the following accounting methods. Free state tax filing turbotax code Each method is discussed in detail below. Free state tax filing turbotax code Cash method. Free state tax filing turbotax code Accrual method. Free state tax filing turbotax code Special methods of accounting for certain items of income and expenses. Free state tax filing turbotax code Combination (hybrid) method using elements of two or more of the above. Free state tax filing turbotax code Business and other items. Free state tax filing turbotax code   You can account for business and personal items using different accounting methods. Free state tax filing turbotax code For example, you can figure your business income under an accrual method, even if you use the cash method to figure personal items. Free state tax filing turbotax code Two or more businesses. Free state tax filing turbotax code   If you operate two or more separate and distinct businesses, you can use a different accounting method for each business. Free state tax filing turbotax code Generally, no business is separate and distinct unless a complete and separate set of books and records is maintained for each business. Free state tax filing turbotax code Cash Method Most farmers use the cash method because they find it easier to keep records using the cash method. Free state tax filing turbotax code However, certain farm corporations and partnerships and all tax shelters must use an accrual method of accounting. Free state tax filing turbotax code See Accrual Method Required , later. Free state tax filing turbotax code Income Under the cash method, include in your gross income all items of income you actually or constructively received during the tax year. Free state tax filing turbotax code Items of income include money received as well as property or services received. Free state tax filing turbotax code If you receive property or services, you must include the fair market value (FMV) of the property or services in income. Free state tax filing turbotax code See chapter 3 for information on how to report farm income on your income tax return. Free state tax filing turbotax code Constructive receipt. Free state tax filing turbotax code   Income is constructively received when an amount is credited to your account or made available to you without restriction. Free state tax filing turbotax code You do not need to have possession of the income for it to be treated as income for the tax year. Free state tax filing turbotax code If you authorize someone to be your agent and receive income for you, you are considered to have received the income when your agent receives it. Free state tax filing turbotax code Income is not constructively received if your receipt of the income is subject to substantial restrictions or limitations. Free state tax filing turbotax code Direct payments and counter-cyclical payments. Free state tax filing turbotax code   If you received direct payments or counter-cyclical payments under Subtitle A or C of the Farm Security and Rural Investment Act of 2002, you will not be considered to have constructively received a payment merely because you had the option to receive it in the year before it is required to be paid. Free state tax filing turbotax code Delaying receipt of income. Free state tax filing turbotax code   You cannot hold checks or postpone taking possession of similar property from one tax year to another to avoid paying tax on the income. Free state tax filing turbotax code You must report the income in the year the money or property is received or made available to you without restriction. Free state tax filing turbotax code Example. Free state tax filing turbotax code Frances Jones, a farmer, was entitled to receive a $10,000 payment on a grain contract in December 2013. Free state tax filing turbotax code She was told in December that her payment was available. Free state tax filing turbotax code She requested not to be paid until January 2014. Free state tax filing turbotax code However, she must still include this payment in her 2013 income because it was made available to her in 2013. Free state tax filing turbotax code Debts paid by another person or canceled. Free state tax filing turbotax code   If your debts are paid by another person or are canceled by your creditors, you may have to report part or all of this debt relief as income. Free state tax filing turbotax code If you receive income in this way, you constructively receive the income when the debt is canceled or paid. Free state tax filing turbotax code See Cancellation of Debt in chapter 3. Free state tax filing turbotax code Deferred payment contract. Free state tax filing turbotax code   If you sell an item under a deferred payment contract that calls for payment in a future year, there is no constructive receipt in the year of sale. Free state tax filing turbotax code However, if the sales contract states that you have the right to the proceeds of the sale from the buyer at any time after delivery of the item, then you must include the sales price in income in the year of the sale, regardless of when you actually receive payment. Free state tax filing turbotax code Example. Free state tax filing turbotax code You are a farmer who uses the cash method and a calendar tax year. Free state tax filing turbotax code You sell grain in December 2013 under a bona fide arm's-length contract that calls for payment in 2014. Free state tax filing turbotax code You include the proceeds from the sale in your 2014 gross income since that is the year payment is received. Free state tax filing turbotax code However, if the contract states that you have the right to the proceeds from the buyer at any time after the grain is delivered, you must include the sales price in your 2013 income, regardless of when you actually receive payment. Free state tax filing turbotax code Repayment of income. Free state tax filing turbotax code   If you include an amount in income and in a later year you have to repay all or part of it, then you can usually deduct the repayment in the year repaid. Free state tax filing turbotax code If the repayment is more than $3,000, a special rule applies. Free state tax filing turbotax code For details, see Repayments in chapter 11 of Publication 535, Business Expenses. Free state tax filing turbotax code Expenses Under the cash method, generally you deduct expenses in the tax year you pay them. Free state tax filing turbotax code This includes business expenses for which you contest liability. Free state tax filing turbotax code However, you may not be able to deduct an expense paid in advance or you may be required to capitalize certain costs, as explained under Uniform Capitalization Rules in chapter 6. Free state tax filing turbotax code See chapter 4 for information on how to deduct farm business expenses on your income tax return. Free state tax filing turbotax code Prepayment. Free state tax filing turbotax code   Generally, you cannot deduct expenses paid in advance. Free state tax filing turbotax code This rule applies to any expense paid far enough in advance to, in effect, create an asset with a useful life extending substantially beyond the end of the current tax year. Free state tax filing turbotax code Example. Free state tax filing turbotax code On November 1, 2013, you signed and paid $3,600 for a 3-year (36-month) insurance contract for equipment. Free state tax filing turbotax code In 2013, you are allowed to deduct only $200 (2/36 x $3,600) of the cost of the policy that is attributable to 2013. Free state tax filing turbotax code In 2014, you'll be able to deduct $1,200 (12/36 x $3,600); in 2015, you'll be able to deduct $1,200 (12/36 x $3,600); and in 2016 you'll be able to deduct the remaining balance of $1,000. Free state tax filing turbotax code An exception applies if the expense qualifies for the 12-month rule. Free state tax filing turbotax code See Publication 538 for more information and examples. Free state tax filing turbotax code See chapter 4 for special rules for prepaid farm supplies and prepaid livestock feed. Free state tax filing turbotax code Accrual Method Under an accrual method of accounting, you generally report income in the year earned and deduct or capitalize expenses in the year incurred. Free state tax filing turbotax code The purpose of an accrual method of accounting is to correctly match income and expenses. Free state tax filing turbotax code Certain businesses engaged in farming must use an accrual method of accounting for its farm business and for sales and purchases of inventory items. Free state tax filing turbotax code See Accrual Method Required and Farm Inventory , later. Free state tax filing turbotax code Income Generally, you include an amount in income for the tax year in which all events that fix your right to receive the income have occurred, and you can determine the amount with reasonable accuracy. Free state tax filing turbotax code Under this rule, include an amount in income on the earliest of the following dates. Free state tax filing turbotax code When you receive payment. Free state tax filing turbotax code When the income amount is due to you. Free state tax filing turbotax code When you earn the income. Free state tax filing turbotax code When title passes. Free state tax filing turbotax code If you use an accrual method of accounting, complete Part III of Schedule F (Form 1040) to report your income. Free state tax filing turbotax code Inventory. Free state tax filing turbotax code   If you keep an inventory, generally you must use an accrual method of accounting to determine your gross income. Free state tax filing turbotax code An inventory is necessary to clearly show income when the production, purchase, or sale of merchandise is an income-producing factor. Free state tax filing turbotax code See Publication 538 for more information. Free state tax filing turbotax code Also see Farm Inventory , later, for more information on items that must be included in inventory by farmers and inventory valuation methods for farmers. Free state tax filing turbotax code Expenses Under an accrual method of accounting, you generally deduct or capitalize a business expense when both of the following apply. Free state tax filing turbotax code The all-events test has been met. Free state tax filing turbotax code This test is met when: All events have occurred that fix the fact that you have a liability, and The amount of the liability can be determined with reasonable accuracy. Free state tax filing turbotax code Economic performance has occurred. Free state tax filing turbotax code Economic performance. Free state tax filing turbotax code   Generally, you cannot deduct or capitalize a business expense until economic performance occurs. Free state tax filing turbotax code If your expense is for property or services provided to you, or for your use of property, economic performance occurs as the property or services are provided or as the property is used. Free state tax filing turbotax code If your expense is for property or services you provide to others, economic performance occurs as you provide the property or services. Free state tax filing turbotax code Example. Free state tax filing turbotax code Jane, who is a farmer, uses a calendar tax year and an accrual method of accounting. Free state tax filing turbotax code She entered into a contract with ABC Farm Consulting in 2012. Free state tax filing turbotax code The contract stated that Jane pay ABC Farm Consulting $2,000 in December 2012. Free state tax filing turbotax code It further stipulates that ABC Farm Consulting will develop a plan for integrating her farm with a larger farm operation based in a neighboring state by March 1, 2013. Free state tax filing turbotax code Jane paid ABC Farm Consulting $2,000 in December 2012. Free state tax filing turbotax code Integration of operations according to the plan began in May 2013 and they completed the integration in December 2013. Free state tax filing turbotax code Economic performance for Jane's liability in the contract occurs as the services are provided. Free state tax filing turbotax code Jane incurs the $2,000 cost in 2013. Free state tax filing turbotax code An exception to the economic performance rule allows certain recurring items to be treated as incurred during a tax year even though economic performance has not occurred. Free state tax filing turbotax code For more information, see Economic Performance in Publication 538. Free state tax filing turbotax code Special rule for related persons. Free state tax filing turbotax code   Business expenses and interest owed to a related person who uses the cash method of accounting are not deductible until you make the payment and the corresponding amount is includible in the related person's gross income. Free state tax filing turbotax code Determine the relationship for this rule as of the end of the tax year for which the expense or interest would otherwise be deductible. Free state tax filing turbotax code For more information, see Internal Revenue Code section 267. Free state tax filing turbotax code Accrual Method Required Generally, the following businesses, if engaged in farming, must use an accrual method of accounting. Free state tax filing turbotax code A corporation (other than a family corporation) that had gross receipts of more than $1,000,000 for any tax year beginning after 1975. Free state tax filing turbotax code A family corporation that had gross receipts of more than $25,000,000 for any tax year beginning after 1985. Free state tax filing turbotax code A partnership with a corporation as a partner, if that corporation meets the requirements of (1) or (2) above. Free state tax filing turbotax code A tax shelter. Free state tax filing turbotax code Note. Free state tax filing turbotax code Items (1), (2), and (3) above do not apply to an S corporation or a business operating a nursery or sod farm, or the raising or harvesting of trees (other than fruit and nut trees). Free state tax filing turbotax code Family corporation. Free state tax filing turbotax code   A family corporation is generally a corporation that meets one of the following ownership requirements. Free state tax filing turbotax code Members of the same family own at least 50% of the total combined voting power of all classes of stock entitled to vote and at least 50% of the total shares of all other classes of stock of the corporation. Free state tax filing turbotax code Members of two families have owned, directly or indirectly, since October 4, 1976, at least 65% of the total combined voting power of all classes of voting stock and at least 65% of the total shares of all other classes of the corporation's stock. Free state tax filing turbotax code Members of three families have owned, directly or indirectly, since October 4, 1976, at least 50% of the total combined voting power of all classes of voting stock and at least 50% of the total shares of all other classes of the corporation's stock. Free state tax filing turbotax code For more information on family corporations, see Internal Revenue Code section 447. Free state tax filing turbotax code Tax shelter. Free state tax filing turbotax code   A tax shelter is a partnership, noncorporate enterprise, or S corporation that meets either of the following tests. Free state tax filing turbotax code Its principal purpose is the avoidance or evasion of federal income tax. Free state tax filing turbotax code It is a farming syndicate. Free state tax filing turbotax code A farming syndicate is an entity that meets either of the following tests. Free state tax filing turbotax code Interests in the activity have been offered for sale in an offering required to be registered with a federal or state agency with the authority to regulate the offering of securities for sale. Free state tax filing turbotax code More than 35% of the losses during the tax year are allocable to limited partners or limited entrepreneurs. Free state tax filing turbotax code   A “limited partner” is one whose personal liability for partnership debts is limited to the money or other property the partner contributed or is required to contribute to the partnership. Free state tax filing turbotax code   A “limited entrepreneur” is one who has an interest in an enterprise other than as a limited partner and does not actively participate in the management of the enterprise. Free state tax filing turbotax code Farm Inventory If you are required to keep an inventory, you should keep a complete record of your inventory as part of your farm records. Free state tax filing turbotax code This record should show the actual count or measurement of the inventory. Free state tax filing turbotax code It should also show all factors that enter into its valuation, including quality and weight, if applicable. Free state tax filing turbotax code Hatchery business. Free state tax filing turbotax code   If you are in the hatchery business, and use an accrual method of accounting, you must include in inventory eggs in the process of incubation. Free state tax filing turbotax code Products held for sale. Free state tax filing turbotax code   All harvested and purchased farm products held for sale or for feed or seed, such as grain, hay, silage, concentrates, cotton, tobacco, etc. Free state tax filing turbotax code , must be included in inventory. Free state tax filing turbotax code Supplies. Free state tax filing turbotax code   Supplies acquired for sale or that become a physical part of items held for sale must be included in inventory. Free state tax filing turbotax code Deduct the cost of supplies in the year used or consumed in operations. Free state tax filing turbotax code Do not include incidental supplies in inventory as these are deductible in the year of purchase. Free state tax filing turbotax code Livestock. Free state tax filing turbotax code   Livestock held primarily for sale must be included in inventory. Free state tax filing turbotax code Livestock held for draft, breeding, or dairy purposes can either be depreciated or included in inventory. Free state tax filing turbotax code See also Unit-livestock-price method , later. Free state tax filing turbotax code If you are in the business of breeding and raising chinchillas, mink, foxes, or other fur-bearing animals, these animals are livestock for inventory purposes. Free state tax filing turbotax code Growing crops. Free state tax filing turbotax code   Generally, growing crops are not required to be included in inventory. Free state tax filing turbotax code However, if the crop has a preproductive period of more than 2 years, you may have to capitalize (or include in inventory) costs associated with the crop. Free state tax filing turbotax code See Uniform capitalization rules below. Free state tax filing turbotax code Also see Uniform Capitalization Rules in  chapter 6. Free state tax filing turbotax code Items to include in inventory. Free state tax filing turbotax code   Your inventory should include all items held for sale, or for use as feed, seed, etc. Free state tax filing turbotax code , whether raised or purchased, that are unsold at the end of the year. Free state tax filing turbotax code Uniform capitalization rules. Free state tax filing turbotax code   The following applies if you are required to use an accrual method of accounting. Free state tax filing turbotax code The uniform capitalization rules apply to all costs of raising a plant, even if the preproductive period of raising a plant is 2 years or less. Free state tax filing turbotax code The costs of animals are subject to the uniform capitalization rules. Free state tax filing turbotax code Inventory valuation methods. Free state tax filing turbotax code   The following methods, described below, are those generally available for valuing inventory. Free state tax filing turbotax code The method you use must conform to generally accepted accounting principles for similar businesses and must clearly reflect income. Free state tax filing turbotax code Cost. Free state tax filing turbotax code Lower of cost or market. Free state tax filing turbotax code Farm-price method. Free state tax filing turbotax code Unit-livestock-price method. Free state tax filing turbotax code Cost and lower of cost or market methods. Free state tax filing turbotax code   See Publication 538 for information on these valuation methods. Free state tax filing turbotax code If you value your livestock inventory at cost or the lower of cost or market, you do not need IRS approval to change to the unit-livestock-price method. Free state tax filing turbotax code However, if you value your livestock inventory using the farm-price method, then you must obtain permission from the IRS to change to the unit-livestock-price method. Free state tax filing turbotax code Farm-price method. Free state tax filing turbotax code   Under this method, each item, whether raised or purchased, is valued at its market price less the direct cost of disposition. Free state tax filing turbotax code Market price is the current price at the nearest market in the quantities you usually sell. Free state tax filing turbotax code Cost of disposition includes broker's commissions, freight, hauling to market, and other marketing costs. Free state tax filing turbotax code If you use this method, you must use it for your entire inventory, except that livestock can be inventoried under the unit-livestock-price method. Free state tax filing turbotax code Unit-livestock-price method. Free state tax filing turbotax code   This method recognizes the difficulty of establishing the exact costs of producing and raising each animal. Free state tax filing turbotax code You group or classify livestock according to type and age and use a standard unit price for each animal within a class or group. Free state tax filing turbotax code The unit price you assign should reasonably approximate the normal costs incurred in producing the animals in such classes. Free state tax filing turbotax code Unit prices and classifications are subject to approval by the IRS on examination of your return. Free state tax filing turbotax code You must annually reevaluate your unit livestock prices and adjust the prices upward or downward to reflect increases or decreases in the costs of raising livestock. Free state tax filing turbotax code IRS approval is not required for these adjustments. Free state tax filing turbotax code Any other changes in unit prices or classifications do require IRS approval. Free state tax filing turbotax code   If you use this method, include all raised livestock in inventory, regardless of whether they are held for sale or for draft, breeding, sport, or dairy purposes. Free state tax filing turbotax code This method accounts only for the increase in cost of raising an animal to maturity. Free state tax filing turbotax code It does not provide for any decrease in the animal's market value after it reaches maturity. Free state tax filing turbotax code Also, if you raise cattle, you are not required to inventory hay you grow to feed your herd. Free state tax filing turbotax code   Do not include sold or lost animals in the year-end inventory. Free state tax filing turbotax code If your records do not show which animals were sold or lost, treat the first animals acquired as sold or lost. Free state tax filing turbotax code The animals on hand at the end of the year are considered those most recently acquired. Free state tax filing turbotax code   You must include in inventory all livestock purchased primarily for sale. Free state tax filing turbotax code You can choose either to include in inventory or depreciate livestock purchased for draft, breeding, sport or dairy purposes. Free state tax filing turbotax code However, you must be consistent from year to year, regardless of the method you have chosen. Free state tax filing turbotax code You cannot change your method without obtaining approval from the IRS. Free state tax filing turbotax code   You must include in inventory animals purchased after maturity or capitalize them at their purchase price. Free state tax filing turbotax code If the animals are not mature at purchase, increase the cost at the end of each tax year according to the established unit price. Free state tax filing turbotax code However, in the year of purchase, do not increase the cost of any animal purchased during the last 6 months of the year. Free state tax filing turbotax code This “no increase” rule does not apply to tax shelters which must make an adjustment for any animal purchased during the year. Free state tax filing turbotax code It also does not apply to taxpayers that must make an adjustment to reasonably reflect the particular period in the year in which animals are purchased, if necessary to avoid significant distortions in income. Free state tax filing turbotax code Uniform capitalization rules. Free state tax filing turbotax code   A farmer can determine costs required to be allocated under the uniform capitalization rules by using the farm-price or unit-livestock-price inventory method. Free state tax filing turbotax code This applies to any plant or animal, even if the farmer does not hold or treat the plant or animal as inventory property. Free state tax filing turbotax code Cash Versus Accrual Method The following examples compare the cash and accrual methods of accounting. Free state tax filing turbotax code Example 1. Free state tax filing turbotax code You are a farmer who uses an accrual method of accounting. Free state tax filing turbotax code You keep your books on the calendar year basis. Free state tax filing turbotax code You sell grain in December 2013 but you are not paid until January 2014. Free state tax filing turbotax code Because the accrual method was used and 2013 was the tax year in which the grain was sold, you must both include the sales proceeds and deduct the costs incurred in producing the grain on your 2013 tax return. Free state tax filing turbotax code Example 2. Free state tax filing turbotax code Assume the same facts as in Example 1 except that you use the cash method and there was no constructive receipt of the sales proceeds in 2013. Free state tax filing turbotax code Under this method, you include the sales proceeds in income for 2014, the year you receive payment. Free state tax filing turbotax code Deduct the costs of producing the grain in the year you pay for them. Free state tax filing turbotax code Special Methods of Accounting There are special methods of accounting for certain items of income and expense. Free state tax filing turbotax code Crop method. Free state tax filing turbotax code   If you do not harvest and dispose of your crop in the same tax year that you plant it, you can, with IRS approval, use the crop method of accounting. Free state tax filing turbotax code You cannot use the crop method for any tax return, including your first tax return, unless you receive approval from the IRS. Free state tax filing turbotax code Under this method, you deduct the entire cost of producing the crop, including the expense of seed or young plants, in the year you realize income from the crop. Free state tax filing turbotax code    See chapter 4 for details on deducting the costs of operating a farm. Free state tax filing turbotax code Also see Regulations section 1. Free state tax filing turbotax code 162-12. Free state tax filing turbotax code Other special methods. Free state tax filing turbotax code   Other special methods of accounting apply to the following items. Free state tax filing turbotax code Amortization, see chapter 7. Free state tax filing turbotax code Casualties, see chapter 11. Free state tax filing turbotax code Condemnations, see chapter 11. Free state tax filing turbotax code Depletion, see chapter 7. Free state tax filing turbotax code Depreciation, see chapter 7. Free state tax filing turbotax code Farm business expenses, see chapter 4. Free state tax filing turbotax code Farm income, see chapter 3. Free state tax filing turbotax code Installment sales, see chapter 10. Free state tax filing turbotax code Soil and water conservation expenses, see chapter 5. Free state tax filing turbotax code Thefts, see chapter 11. Free state tax filing turbotax code Combination Method Generally, you can use any combination of cash, accrual, and special methods of accounting if the combination clearly shows your income and expenses and you use it consistently. Free state tax filing turbotax code However, the following restrictions apply. Free state tax filing turbotax code If you use the cash method for figuring your income, you must use the cash method for reporting your expenses. Free state tax filing turbotax code If you use an accrual method for reporting your expenses, you must use an accrual method for figuring your income. Free state tax filing turbotax code Changes in Methods of Accounting A change in your method of accounting includes a change in: Your overall method, such as from the cash method to an accrual method, and Your treatment of any material item, such as a change in your method of valuing inventory (for example, a change from the farm-price method to the unit-livestock-price method, discussed earlier). Free state tax filing turbotax code Generally, once you have set up your accounting method, you must receive approval from the IRS before you can change to another method of accounting. Free state tax filing turbotax code You may also have to pay a fee. Free state tax filing turbotax code To obtain approval, you must generally file Form 3115. Free state tax filing turbotax code There are instances when you can obtain automatic consent to change certain methods of accounting. Free state tax filing turbotax code See the List of Automatic Accounting Method Changes located in the Instructions for Form 3115. Free state tax filing turbotax code For more information on changes in methods of accounting, see Form 3115 and the Instructions for Form 3115. Free state tax filing turbotax code Also see Publication 538. Free state tax filing turbotax code Prev  Up  Next   Home   More Online Publications
Print - Click this link to Print this page

More - What's New at Procurement

 

Solicitation activity for the last three (3) months.

November 2013
11/01/2013 Justification for an Exception to Fair Opportunity - Renewal of Maintenance for Net App Mass Storage equipment in support of the SOI Program
 
September 2013
09/06/2013 Justification for an Exception to Fair Opportunity - Redacted
 

 


 

Questions about the Procurement information on this site, please contact the webmaster.

Contact the Office of Procurement for other Procurement related questions.

Page Last Reviewed or Updated: 04-Nov-2013

The Free State Tax Filing Turbotax Code

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