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Free taxes preparation Index A Absence, temporary, Temporary absence from work. Free taxes preparation , Temporary absence from work. Free taxes preparation Accountable plans, Accountable Plans Address, change of, Reminders Adequate accounting, Adequate accounting. Free taxes preparation Armed Forces, Retirees, survivors, and Armed Forces members. Free taxes preparation , Members of the Armed Forces Distance test, special rule, Armed Forces. Free taxes preparation Form 3903, how to complete, How to complete Form 3903 for members of the Armed Forces. Free taxes preparation Services or reimbursements provided by government, Services or reimbursements provided by government. Free taxes preparation Spouse and dependents, Spouse and dependents. Free taxes preparation Assistance (see Tax help) C Change of address, Reminders Closely related in place, Closely related in place. Free taxes preparation Closely related in time, Closely related in time. Free taxes preparation D Deductible moving expenses, Deductible Moving Expenses, Moving expenses allocable to excluded foreign income. Free taxes preparation Household goods, Household goods and personal effects. Free taxes preparation Moving to and from storage, Moving goods and effects to and from storage. Free taxes preparation Member of your household, Member of your household. Free taxes preparation Moves in U. Free taxes preparation S. Free taxes preparation , Moves to Locations in the United States Moves outside U. Free taxes preparation S. Free taxes preparation , Moves to Locations Outside the United States Moving expenses allocable to excluded foreign income, Moving expenses allocable to excluded foreign income. Free taxes preparation Personal effects, Household goods and personal effects. Free taxes preparation Moving to and from storage, Moving goods and effects to and from storage. Free taxes preparation Reasonable expenses, Reasonable expenses. Free taxes preparation Storage expenses, Storage expenses. Free taxes preparation , Storage expenses. Free taxes preparation Travel by car, Travel by car. Free taxes preparation Travel expenses, Travel expenses. Free taxes preparation Distance test, Distance Test Armed Forces, special rule, Armed Forces. Free taxes preparation First job, First job or return to full-time work. Free taxes preparation Illustration of (Figure A), Main job location, Main job location. Free taxes preparation Return to full-time work, First job or return to full-time work. Free taxes preparation Worksheet 1, Distance Test E Employees Time test for, Time Test for Employees Estimated tax, Tax Withholding and Estimated Tax, Estimated tax. Free taxes preparation Excess reimbursements, Excess reimbursement. Free taxes preparation Excluded foreign income Moving expenses allocable to, Moving expenses allocable to excluded foreign income. Free taxes preparation F Figures (see Tables and figures) First job, First job or return to full-time work. Free taxes preparation Form 1040 Moving expense deduction, Where to deduct. Free taxes preparation Form 3903 Armed Forces members, how to complete, How to complete Form 3903 for members of the Armed Forces. Free taxes preparation Completing form, Completing Form 3903. Free taxes preparation Moving expense deduction calculation, Form 3903 Form W-2 Reimbursements, You meet accountable plan rules. Free taxes preparation , Expenses deducted in earlier year. Free taxes preparation Government provided for Armed Forces members, Services or reimbursements provided by government. Free taxes preparation Form W-4 Withholding allowance, Amount of income tax withheld. Free taxes preparation Free tax services, Free help with your tax return. Free taxes preparation Full-time work, defined, Full-time work. Free taxes preparation H Help (see Tax help) Home, defined, Home defined. Free taxes preparation Household goods, Household goods and personal effects. Free taxes preparation Moving to and from storage, Moving goods and effects to and from storage. Free taxes preparation I Important reminders, Reminders J Joint returns, Joint Return M Main job location Defined, Main job location. Free taxes preparation More than one job, More than one job. Free taxes preparation Union members, Union members. Free taxes preparation Member of household, Member of your household. Free taxes preparation Members of Armed Forces (see Armed Forces) Mileage rate, What's New Missing children, photographs of, Reminders Moves In U. Free taxes preparation S. Free taxes preparation , Moves to Locations in the United States Outside U. Free taxes preparation S. Free taxes preparation , Moves to Locations Outside the United States To and from storage, Moving goods and effects to and from storage. Free taxes preparation Moving expenses, Who Can Deduct Moving Expenses, Deductible Moving Expenses (see also Deductible moving expenses) (see also Who can deduct) N Nonaccountable plans, Nonaccountable Plans Nondeductible expenses, Nondeductible Expenses Reimbursements of, Reimbursement of nondeductible expenses. Free taxes preparation , Reimbursement for deductible and nondeductible expenses. Free taxes preparation P Permanently retired, defined, Retirees who were working abroad. Free taxes preparation Personal effects, Household goods and personal effects. Free taxes preparation Moving to and from storage, Moving goods and effects to and from storage. Free taxes preparation Publications (see Tax help) R Reasonable expenses, Reasonable expenses. Free taxes preparation Reasonable period of time, Reasonable period of time. Free taxes preparation Reimbursements, Reimbursements, Estimated tax. Free taxes preparation Accountable plans, Accountable Plans Adequate accounting, Adequate accounting. Free taxes preparation Armed Forces members, Services or reimbursements provided by government. Free taxes preparation Estimated tax, Estimated tax. Free taxes preparation Excess, Excess reimbursement. Free taxes preparation Excluded from income, Reimbursements excluded from income. Free taxes preparation Included in income, Reimbursements included in income. Free taxes preparation Nonaccountable plans, Nonaccountable Plans Nondeductible expenses, Reimbursement of nondeductible expenses. Free taxes preparation , Reimbursement for deductible and nondeductible expenses. Free taxes preparation Reasonable period of time, Reasonable period of time. Free taxes preparation Reporting moving expenses and reimbursements (Table 2), How and When To Report Types of plans, Types of Reimbursement Plans Reporting expenses, How and When To Report Expenses equal to or less than reimbursement, Expenses equal to or less than reimbursement. Free taxes preparation Expenses greater than reimbursement, Expenses greater than reimbursement. Free taxes preparation Form 3903, deduction calculation, Form 3903 Moving expenses and reimbursements (Table 2), How and When To Report Retirees who move to U. Free taxes preparation S. Free taxes preparation , Retirees, survivors, and Armed Forces members. Free taxes preparation , Retirees or survivors. Free taxes preparation Permanently retired, defined, Retirees who were working abroad. Free taxes preparation Return to full-time work, First job or return to full-time work. Free taxes preparation S Seasonal trade or business, Seasonal trade or business. Free taxes preparation Seasonal work, Seasonal work. Free taxes preparation Self-employed persons Time test, Time Test for Self-Employed Persons, Self-employment. Free taxes preparation Table 1, Time Test for Employees Spouse of Armed Forces member, Spouse and dependents. Free taxes preparation Standard mileage rate, What's New Storage expenses, Storage expenses. Free taxes preparation , Storage expenses. Free taxes preparation Survivors who move to U. Free taxes preparation S. Free taxes preparation , Retirees, survivors, and Armed Forces members. Free taxes preparation , Retirees or survivors. Free taxes preparation , Retirees or Survivors Who Move to the United States, Survivors of decedents who were working abroad. Free taxes preparation When move begins, When a move begins. Free taxes preparation T Tables and figures Distance test, Distance Test Nonmilitary move within U. Free taxes preparation S. Free taxes preparation , can you deduct expenses (Figure B), Seasonal work. Free taxes preparation Reporting moving expenses and reimbursements (Table 2), How and When To Report Time test, satisfying for employees and self-employed persons (Table 1), Time Test for Employees Tax help, How To Get Tax Help Temporary absence, Temporary absence from work. Free taxes preparation , Temporary absence from work. Free taxes preparation Time test, Time Test Employees, Time Test for Employees Exceptions to, Exceptions to the Time Test Full-time work, Full-time work. Free taxes preparation Joint return, Joint Return Not yet met, Time Test Not Yet Met Satisfying for employees and self-employed persons (Table 1), Time Test for Employees Seasonal trade or business, Seasonal trade or business. Free taxes preparation Seasonal work, Seasonal work. Free taxes preparation Self-employed persons, Time Test for Self-Employed Persons, Self-employment. Free taxes preparation Temporary absence from work, Temporary absence from work. Free taxes preparation , Temporary absence from work. Free taxes preparation Travel by car, Travel by car. Free taxes preparation Travel expenses, Travel expenses. Free taxes preparation TTY/TDD information, How To Get Tax Help U Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 Unions Main job location of member, Union members. Free taxes preparation W When to deduct expenses, When To Deduct Expenses, Illustrated Example Choosing when to deduct, Choosing when to deduct. Free taxes preparation Expenses not reimbursed, Expenses not reimbursed. Free taxes preparation Expenses reimbursed, Expenses reimbursed. Free taxes preparation How to make choice, How to make the choice. Free taxes preparation Who can deduct, Who Can Deduct Moving Expenses, When a move begins. Free taxes preparation Armed Forces, members of, Retirees, survivors, and Armed Forces members. Free taxes preparation Distance test, Distance Test Nonmilitary move within U. Free taxes preparation S. Free taxes preparation (Figure B), Seasonal work. Free taxes preparation Related to start of work, Move Related to Start of Work Retirees who move to U. Free taxes preparation S. Free taxes preparation , Retirees, survivors, and Armed Forces members. Free taxes preparation , Retirees or survivors. Free taxes preparation , Retirees or Survivors Who Move to the United States Survivors who move to U. Free taxes preparation S. Free taxes preparation , Retirees, survivors, and Armed Forces members. Free taxes preparation , Retirees or survivors. Free taxes preparation , Retirees or Survivors Who Move to the United States, Survivors of decedents who were working abroad. Free taxes preparation Time test, Time Test Withholding, Tax Withholding and Estimated Tax Worksheet Distance test (Worksheet 1), Distance Test Prev  Up     Home   More Online Publications
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Free taxes preparation 4. Free taxes preparation   Deductions Table of Contents Standard DeductionStandard Deduction for Dependents Itemized DeductionsMedical and Dental Expenses Most taxpayers have a choice of taking a standard deduction or itemizing their deductions. Free taxes preparation You benefit from the standard deduction if your standard deduction is more than the total of your allowable itemized deductions. Free taxes preparation If you have a choice, you should use the method that gives you the lower tax. Free taxes preparation Standard Deduction The standard deduction amount depends on your filing status, whether you are 65 or older or blind, and whether an exemption can be claimed for you by another taxpayer. Free taxes preparation Generally, the standard deduction amounts are adjusted each year for inflation. Free taxes preparation In most cases, you can use Worksheet 4-1 to figure your standard deduction amount. Free taxes preparation Persons not eligible for the standard deduction. Free taxes preparation   Your standard deduction is zero and you should itemize any deductions you have if: You are married and filing a separate return, and your spouse itemizes deductions, You are filing a tax return for a short tax year because of a change in your annual accounting period, or You are a nonresident or dual-status alien during the year. Free taxes preparation You are considered a dual-status alien if you were both a nonresident alien and a resident alien during the year. Free taxes preparation   If you are a nonresident alien who is married to a U. Free taxes preparation S. Free taxes preparation citizen or resident alien at the end of the year, you can choose to be treated as a U. Free taxes preparation S. Free taxes preparation resident. Free taxes preparation See Publication 519, U. Free taxes preparation S. Free taxes preparation Tax Guide for Aliens. Free taxes preparation If you make this choice, you can take the standard deduction. Free taxes preparation Decedent's final return. Free taxes preparation   The amount of the standard deduction for a decedent's final tax return is the same as it would have been had the decedent continued to live. Free taxes preparation However, if the decedent was not 65 or older at the time of death, the higher standard deduction for age cannot be claimed. Free taxes preparation Higher standard deduction for age (65 or older). Free taxes preparation   If you do not itemize deductions, you are entitled to a higher standard deduction if you are age 65 or older at the end of the year. Free taxes preparation You are considered age 65 on the day before your 65th birthday. Free taxes preparation Therefore, you can take a higher standard deduction for 2013 if you were born before January 2, 1949. Free taxes preparation Higher standard deduction for blindness. Free taxes preparation   If you are blind on the last day of the year and you do not itemize deductions, you are entitled to a higher standard deduction. Free taxes preparation You qualify for this benefit if you are totally or partly blind. Free taxes preparation Not totally blind. Free taxes preparation   If you are not totally blind, you must get a certified statement from an eye doctor (ophthalmologist or optometrist) that: You cannot see better than 20/200 in the better eye with glasses or contact lenses, or Your field of vision is not more than 20 degrees. Free taxes preparation   If your eye condition will never improve beyond these limits, the statement should include this fact. Free taxes preparation You must keep the statement in your records. Free taxes preparation   If your vision can be corrected beyond these limits only by contact lenses that you can wear only briefly because of pain, infection, or ulcers, you can take the higher standard deduction for blindness if you otherwise qualify. Free taxes preparation Spouse 65 or older or blind. Free taxes preparation   You can take the higher standard deduction if your spouse is age 65 or older or blind and: You file a joint return, or You file a separate return and can claim an exemption for your spouse because your spouse had no gross income and an exemption for your spouse could not be claimed by another taxpayer. Free taxes preparation    You cannot claim the higher standard deduction for an individual other than yourself and your spouse. Free taxes preparation Example. Free taxes preparation This example illustrates how to determine your standard deduction using Worksheet 4-1. Free taxes preparation Bill and Lisa are filing a joint return for 2013. Free taxes preparation Both are over age 65. Free taxes preparation Neither is blind, and neither can be claimed as a dependent. Free taxes preparation They do not itemize deductions, so they use Worksheet 4-1. Free taxes preparation Because they are married filing jointly, they enter $12,200 on line 1. Free taxes preparation They check the “No” box on line 2, so they also enter $12,200 on line 4. Free taxes preparation Because they are both over age 65, they enter $2,400 ($1,200 × 2) on line 5. Free taxes preparation They enter $14,600 ($12,200 + $2,400) on line 6, so their standard deduction is $14,600. Free taxes preparation Standard Deduction for Dependents The standard deduction for an individual for whom an exemption can be claimed on another person's tax return is generally limited to the greater of: $1,000, or The individual's earned income for the year plus $350 (but not more than the regular standard deduction amount, generally $6,100). Free taxes preparation However, the standard deduction may be higher if the individual is 65 or older or blind. Free taxes preparation If an exemption for you (or your spouse if you are filing jointly) can be claimed on someone else's return, use Worksheet 4-1, if applicable, to determine your standard deduction. Free taxes preparation Worksheet 4-1. Free taxes preparation 2013 Standard Deduction Worksheet Caution. Free taxes preparation If you are married filing separately and your spouse itemizes deductions, or if you are a dual-status alien, do not complete this worksheet. Free taxes preparation If you were born before January 2, 1949, and/or blind, check the correct number of boxes below. Free taxes preparation Put the total number of boxes checked in box c and go to line 1. Free taxes preparation a. Free taxes preparation You   Born before  January 2, 1949     Blind b. Free taxes preparation Your spouse, if claiming  spouse's exemption   Born before January 2, 1949     Blind c. Free taxes preparation Total boxes checked             1. Free taxes preparation Enter the amount shown below for your filing status. Free taxes preparation               Single or married filing separately — $6,100 Married filing jointly or Qualifying widow(er) — $12,200 Head of household — $8,950   1. Free taxes preparation           2. Free taxes preparation Can you (or your spouse if filing jointly) be claimed as a dependent on someone else's return?  No. Free taxes preparation Skip line 3; enter the amount from line 1 on line 4. Free taxes preparation   Yes. Free taxes preparation Go to line 3. Free taxes preparation         3. Free taxes preparation Is your earned income* more than $650?               Yes. Free taxes preparation Add $350 to your earned income. Free taxes preparation Enter the total   3. Free taxes preparation         No. Free taxes preparation Enter $1,000 4. Free taxes preparation Enter the smaller of line 1 or line 3 4. Free taxes preparation   5. Free taxes preparation If born before January 2, 1949, or blind, multiply the number in box c by $1,200 ($1,500 if single or head of household). Free taxes preparation Enter the result here. Free taxes preparation Otherwise, enter -0- 5. Free taxes preparation   6. Free taxes preparation Add lines 4 and 5. Free taxes preparation This is your standard deduction for 2013. Free taxes preparation 6. Free taxes preparation   * Earned income includes wages, salaries, tips, professional fees, and other compensation received for personal services you performed. Free taxes preparation It also includes any amount received as a scholarship that you must include in your income. Free taxes preparation Generally, your earned income is the total of the amount(s) you reported on Form 1040, lines 7, 12, and 18, minus the amount, if any, on line 27 (or the amount you reported on Form 1040A, line 7). Free taxes preparation Itemized Deductions Some individuals should itemize their deductions because it will save them money. Free taxes preparation Others should itemize because they do not qualify for the standard deduction. Free taxes preparation See the discussion under Standard Deduction , earlier, to decide if it would be to your advantage to itemize deductions. Free taxes preparation You may be subject to a limit on some of your itemized deductions if your adjusted gross income is more than $150,000. Free taxes preparation For more information, see Overall limitation, later. Free taxes preparation Medical and dental expenses, some taxes, certain interest expenses, charitable contributions, casualty and theft losses, and certain other miscellaneous expenses may be itemized as deductions on Schedule A (Form 1040). Free taxes preparation You may benefit from itemizing your deductions on Schedule A (Form 1040) if you: Cannot take the standard deduction, Had uninsured medical or dental expenses that are more than 10% of your adjusted gross income (or more than 7. Free taxes preparation 5% of your adjusted gross income if either you or your spouse is age 65 or older), Paid interest on your home, Paid real estate or personal property taxes, Paid mortgage insurance premiums, Paid state and local income or general sales taxes, Had large unreimbursed employee business expenses or other miscellaneous deductions, Had large uninsured casualty or theft losses, Made large contributions to qualified charities (see Publication 526, Charitable Contributions), or Have total itemized deductions that are more than the standard deduction that applies to you. Free taxes preparation See the Schedule A (Form 1040) instructions for more information. Free taxes preparation Overall limitation. Free taxes preparation   You may not be able to deduct all of your itemized deductions if your adjusted gross income is more than: $150,000, if married filing separately, $250,000, if single, $275,000, if head of household, or $300,000, if married filing jointly or qualifying widow(er). Free taxes preparation  If your adjusted gross income exceeds the applicable amount, you will use the Itemized Deductions Worksheet in the Instructions for Schedule A (Form 1040) to figure your total itemized deductions. Free taxes preparation Medical and Dental Expenses You can deduct certain medical and dental expenses you paid for yourself, your spouse, and your dependent(s) if you itemize your deductions on Schedule A (Form 1040). Free taxes preparation Table 4-1 shows some common items that you can or cannot include in figuring your medical expense deduction. Free taxes preparation For more information, see the following discussions of selected items, which are presented in alphabetical order. Free taxes preparation A more extensive list of items and further details can be found in Publication 502, Medical and Dental Expenses. Free taxes preparation Table 4-1. Free taxes preparation Medical and Dental Expenses Checklist You can include: You cannot include: Bandages Capital expenses for equipment or improvements to your home needed for medical care (see Publication 502) Certain weight-loss expenses for obesity Diagnostic devices Expenses of an organ donor Eye surgery—to promote the correct function of the eye Guide dogs or other animals aiding the blind, deaf, and disabled Hospital services fees (lab work, therapy, nursing services, surgery, etc. Free taxes preparation ) Lead-based paint removal (see Publication 502) Long-term care contracts, qualified (see Publication 502) Meals and lodging provided by a hospital during medical treatment Medical and hospital insurance premiums Medical services fees (from doctors, dentists, surgeons, specialists, and other medical practitioners) Medicare Part D premiums Oxygen equipment and oxygen Part of life-care fee paid to retirement home designated for medical care Prescription medicines (prescribed by a doctor) and insulin Psychiatric and psychological treatment Social security tax, Medicare tax, FUTA, and state employment tax for worker providing medical care (see Publication 502) Special items (artificial limbs, false teeth, eyeglasses, contact lenses, hearing aids, crutches, wheelchair, etc. Free taxes preparation ) Special education for mentally or physically disabled persons (see Publication 502) Stop-smoking programs Transportation for needed medical care Treatment at a drug or alcohol center (includes meals and lodging provided by the center) Wages for nursing services (see Publication 502) Contributions to Archer MSAs (see Publication 969) Bottled water Diaper service Expenses for your general health (even if following your doctor's advice) such as: —Health club dues —Household help (even if recommended by a doctor) —Social activities, such as dancing or swimming lessons —Trip for general health improvement Flexible spending account reimbursements for medical expenses (if contributions were on a pretax basis) (see Publication 502) Funeral, burial, or cremation expenses Health savings account payments for medical expenses (see Publication 502) Illegal operation or treatment Life insurance or income protection policies, or policies providing payment for loss of life, limb, sight, etc. Free taxes preparation Medical insurance included in a car insurance policy covering all persons injured in or by your car Medicine you buy without a prescription Nursing care for a healthy baby Prescription drugs you brought in (or ordered shipped) from another country, in most cases (see Publication 502) Surgery for purely cosmetic reasons (see Publication 502) Toothpaste, toiletries, cosmetics, etc. Free taxes preparation Teeth whitening Weight-loss expenses not for the treatment of obesity or other disease You can deduct only the amount of your medical and dental expenses that is more than 10% of your adjusted gross income (or that is more than 7. Free taxes preparation 5% of your adjusted gross income if you or your spouse is age 65 or older). Free taxes preparation What to include. Free taxes preparation   Generally, you can include only the medical and dental expenses you paid this year, regardless of when the services were provided. Free taxes preparation If you pay medical expenses by check, the day you mail or deliver the check generally is the date of payment. Free taxes preparation 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 taxes preparation You can include medical expenses you charge to your credit card in the year the charge is made. Free taxes preparation It does not matter when you actually pay the amount charged. Free taxes preparation Home Improvements You can include in medical expenses amounts you pay for home improvements if their main purpose is medical care for you, your spouse, or your dependent. Free taxes preparation Only reasonable costs to accommodate a home to your disabled condition (or that of your spouse or your dependent(s) who live with you) are considered medical care. Free taxes preparation Additional costs for personal motives, such as for architectural or aesthetic reasons, are not medical expenses. Free taxes preparation Publication 502 contains additional information and examples, including a capital expense worksheet, to assist you in figuring the amount of the capital expense that you can include in your medical expenses. Free taxes preparation Also, see Publication 502 for information about deductible operating and upkeep expenses related to such capital expense items, and for information about improvements, for medical reasons, to property rented by a person with disabilities. Free taxes preparation Household Help You cannot include in medical expenses the cost of household help, even if such help is recommended by a doctor. Free taxes preparation This is a personal expense that is not deductible. Free taxes preparation However, you may be able to include certain expenses paid to a person providing nursing-type services. Free taxes preparation For more information, see Nursing Services , later. Free taxes preparation Also, certain maintenance or personal care services provided for qualified long-term care can be included in medical expenses. Free taxes preparation For more information, see Qualified long-term care services under Long-Term Care, later. Free taxes preparation 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 taxes preparation This includes amounts paid for meals and lodging. Free taxes preparation Also, see Meals and Lodging , later. Free taxes preparation 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 taxes preparation Qualified long-term care services. Free taxes preparation   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 under a plan of care prescribed by a licensed health care practitioner. Free taxes preparation Chronically ill individual. Free taxes preparation    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 taxes preparation 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 taxes preparation Activities of daily living are eating, toileting, transferring, bathing, dressing, and continence. Free taxes preparation He or she requires substantial supervision to be protected from threats to health and safety due to severe cognitive impairment. Free taxes preparation Maintenance and personal care services. Free taxes preparation    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 taxes preparation Qualified long-term care insurance contracts. Free taxes preparation   A qualified long-term care insurance contract is an insurance contract that provides only coverage of qualified long-term care services. Free taxes preparation 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 taxes preparation   The amount of qualified long-term care premiums you can include is limited. Free taxes preparation You can include the following as medical expenses on Schedule A (Form 1040). Free taxes preparation Qualified long-term care premiums up to the following amounts. Free taxes preparation Age 40 or under – $360. Free taxes preparation Age 41 to 50 – $680. Free taxes preparation Age 51 to 60 – $1,360. Free taxes preparation Age 61 to 70 – $3,640. Free taxes preparation Age 71 or over – $4,550. Free taxes preparation Unreimbursed expenses for qualified long-term care services. Free taxes preparation Note. Free taxes preparation The limit on premiums is for each person. Free taxes preparation Meals and Lodging You can include in medical expenses the cost of meals and lodging at a hospital or similar institution if your main reason for being there is to receive medical care. Free taxes preparation You may be able to include in medical expenses the cost of lodging (but not meals) not provided in a hospital or similar institution. Free taxes preparation You can include the cost of such lodging while away from home if all of the following requirements are met. Free taxes preparation The lodging is primarily for, and essential to, medical care. Free taxes preparation 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 taxes preparation The lodging is not lavish or extravagant under the circumstances. Free taxes preparation There is no significant element of personal pleasure, recreation, or vacation in the travel away from home. Free taxes preparation The amount you include in medical expenses for lodging cannot be more than $50 per night for each person. Free taxes preparation You can include lodging for a person traveling with the person receiving the medical care. Free taxes preparation 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 taxes preparation (Meals are not included. Free taxes preparation ) Nursing home. Free taxes preparation   You can include in medical expenses the cost of medical care in a nursing home or a home for the aged for yourself, your spouse, or your dependent(s). Free taxes preparation This includes the cost of meals and lodging in the home if a main reason for being there is to get medical care. Free taxes preparation   Do not include the cost of meals and lodging if the reason for being in the home is personal. Free taxes preparation However, you can include in medical expenses the part of the cost that is for medical or nursing care. Free taxes preparation Medical Insurance Premiums You can include in medical expenses insurance premiums you pay for policies that cover medical care. Free taxes preparation Policies can provide payment for: Hospitalization, surgical fees, X-rays, Prescription drugs and insulin, Dental care, Replacement of lost or damaged contact lenses, and Qualified long-term care insurance contracts (subject to the additional limits included in the discussion on qualified long-term care insurance contracts under Long-Term Care , earlier). Free taxes preparation 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 taxes preparation The cost of the medical portion must be separately stated in the insurance contract or given to you in a separate statement. Free taxes preparation Medicare Part A. Free taxes preparation   If you are covered under social security (or if you are a government employee who paid Medicare tax), you are enrolled in Medicare Part A. Free taxes preparation The payroll tax paid for Medicare Part A is not a medical expense. Free taxes preparation If you are not covered under social security (or were not a government employee who paid Medicare tax), you can enroll voluntarily in Medicare Part A. Free taxes preparation In this situation you can include the premiums you paid for Medicare Part A as a medical expense. Free taxes preparation Medicare Part B. Free taxes preparation   Medicare Part B is a supplemental medical insurance. Free taxes preparation Premiums you pay for Medicare Part B are a medical expense. Free taxes preparation If you applied for it at age 65 or after you became disabled, you can include in medical expenses the monthly premiums you paid. Free taxes preparation If you were over age 65 or disabled when you first enrolled, check with your local Social Security Administration office, or go to their website at www. Free taxes preparation SSA. Free taxes preparation gov, to find out your premium. Free taxes preparation Medicare Part D. Free taxes preparation   Medicare Part D is a voluntary prescription drug insurance program for persons with Medicare Part A or Part B. Free taxes preparation You can include as a medical expense premiums you pay for Medicare Part D. Free taxes preparation Prepaid insurance premiums. Free taxes preparation   Insurance premiums you pay before you are age 65 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 taxes preparation Medicines You can include in medical expenses amounts you pay for prescribed medicines and drugs. Free taxes preparation A prescribed drug is one that requires a prescription by a doctor for its use by an individual. Free taxes preparation You can also include amounts you pay for insulin. Free taxes preparation Except for insulin, you cannot include in medical expenses amounts you pay for a drug that is not prescribed. Free taxes preparation Imported medicines and drugs. Free taxes preparation   If you import medicines or drugs from other countries, see Medicines and Drugs From Other Countries, under What Expenses Are Not Includible, in Publication 502. Free taxes preparation Nursing Services You can include in medical expenses wages and other amounts you pay for nursing services. Free taxes preparation The services need not be performed by a nurse as long as the services are of a kind generally performed by a nurse. Free taxes preparation 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 taxes preparation These services can be provided in your home or another care facility. Free taxes preparation Generally, only the amount spent for nursing services is a medical expense. Free taxes preparation 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 taxes preparation However, certain maintenance or personal care services provided for qualified long-term care can be included in medical expenses. Free taxes preparation See Maintenance and personal care services under Qualified long-term care services, earlier. Free taxes preparation 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 taxes preparation See Child and Dependent Care Credit , later, and Publication 503, Child and Dependent Care Expenses. Free taxes preparation You can also include in medical expenses part of the amount you pay for that attendant's meals. Free taxes preparation Divide the food expense among the household members to find the cost of the attendant's food. Free taxes preparation Then divide that cost in the same manner as in the preceding paragraph. Free taxes preparation 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 taxes preparation This includes extra rent or utilities you pay because you moved to a larger apartment to provide space for the attendant. Free taxes preparation Employment taxes. Free taxes preparation   You can include as a medical expense social security tax, FUTA, Medicare tax, and state employment taxes you pay for a nurse, attendant, or other person who provides medical care. Free taxes preparation 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 under Nursing Services. Free taxes preparation For information on employment tax responsibilities of household employers, see Publication 926, Household Employer's Tax Guide. Free taxes preparation Transportation You can include in medical expenses amounts paid for transportation primarily for, and essential to, medical care. Free taxes preparation Car expenses. Free taxes preparation    You can include out-of-pocket expenses, such as the cost of gas and oil, when you use a car for medical reasons. Free taxes preparation You cannot include depreciation, insurance, general repair, or maintenance expenses. Free taxes preparation   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 taxes preparation   You can also include parking fees and tolls. Free taxes preparation You can add these fees and tolls to your medical expenses whether you use actual expenses or use the standard mileage rate. Free taxes preparation You can also include:    Bus, taxi, train, or plane fares or ambulance service, and 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. Free taxes preparation Do not include transportation expenses if, for purely personal reasons, you choose to travel to another city for an operation or other medical care prescribed by your doctor. Free taxes preparation Prev  Up  Next   Home   More Online Publications