2004 Instructions for Form 1040 (ALL) - Supreme Law Firm

Department of the Treasury
Internal Revenue Service
2004 Instructions for Schedules A & B
(Form 1040)
Instructions for
Schedule A,
Itemized
Deductions
Use Schedule A (Form 1040) to figure your itemized deductions. In most cases, your federal
income tax will be less if you take the larger of your itemized deductions or your standard
deduction.
If you itemize, you can deduct a part of your medical and dental expenses and unreimbursed
employee business expenses, and amounts you paid for certain taxes, interest,
contributions, and miscellaneous expenses. You can also deduct certain casualty and theft
losses.
Do not include on Schedule A items deducted elsewhere, such as on Form 1040
or Schedule C, C-EZ, E, or F.
self-employed health insurance deduction • A weight-loss program as treatment
What’s New
you claimed on Form 1040, line 31. for a specific disease (including obesity)
diagnosed by a doctor.
You can elect to deduct state and local general
sales taxes instead of state and local Note. If, during 2004, you were an eligible • Medical treatment at a center for drug
income taxes as an itemized deduction on trade adjustment assistance (TAA) recipi- or alcohol addiction.
Schedule A. Generally, you can use either ent, alternative TAA recipient, or Pension • Medical aids such as eyeglasses, conyour
actual expenses or the Optional State Benefit Guaranty Corporation pension re-
tact lenses, hearing aids, braces, crutches,
Sales Tax Tables to figure your state and cipient, you must reduce your insurance wheelchairs, and guide dogs, including the
local general sales tax deduction. See the premiums by any amounts used to figure
cost of maintaining them.
instructions for line 5 that begin on page the health coverage tax credit. See the in-
A-2 for details.
structions for line 1 on page A-2.
• Surgery to improve defective vision,
such as laser eye surgery or radial keratotomy.
You cannot deduct insurance • Lodging expenses (but not meals)
Medical and Dental
premiums paid with pretax dol- while away from home to receive medical
lars because the premiums are care in a hospital or a medical care facility
Expenses
not included in box 1 of your related to a hospital, provided there was no
You can deduct only the part of your medirecreation,
or vacation in the travel. Do not
Form(s) W-2.
significant element of personal pleasure,
cal and dental expenses that exceeds 7.5%
of the amount on Form 1040, line 37. • Prescription medicines or insulin. deduct more than $50 a night for each eligi-
• Acupuncturists, chiropractors, den- ble person.
Pub. 502 discusses the types of ex- tists, eye doctors, medical doctors, occupa- • Ambulance service and other travel
penses that you can and cannot deduct. It tional therapists, osteopathic doctors, costs to get medical care. If you used your
also explains when you can deduct capital
physical therapists, podiatrists, psychiaexpenses
and special care expenses for distrists,
psychoanalysts (medical care only),
own car, you can claim what you spent for
abled persons.
gas and oil to go to and from the place you
and psychologists.
received the care; or you can claim 14 cents
If you received a distribution • Medical examinations, X-ray and lab- a mile. Add parking and tolls to the amount
from a health savings account oratory services, insulin treatment, and you claim under either method.
or a medical savings account in whirlpool baths your doctor ordered.
2004, see Pub. 969 to figure • Nursing help (including your share of
your deduction.
the employment taxes paid). If you paid Note. Certain medical expenses paid out of
someone to do both nursing and houseon
the deceased taxpayer’s final return. See
a deceased taxpayer’s estate can be claimed
Examples of Medical and work, you can deduct only the cost of the
Dental Payments You Can nursing help.
Pub. 502 for details.
Deduct
• Hospital care (including meals and
lodging), clinic costs, and lab fees.
To the extent you were not reimbursed, you
can deduct what you paid for:
• Qualified long-term care services (see Limit on long-term care premiums you can
Pub. 502).
• Insurance premiums for medical and
deduct. The amount you can deduct for
dental care, including premiums for qualisurance
(Medicare B).
fined in Pub. 502) depends on the age, at
• The supplemental part of Medicare in- qualified long-term care contracts (as de-
fied long-term care contracts as defined in
Pub. 502. But see Limit on long-term care • A program to stop smoking and for the end of 2004, of the person for whom the
premiums you can deduct on this page. Rewithdrawal.
A-2 for
prescription medicines to alleviate nicotine premiums were paid. See the chart on page
duce the insurance premiums by any
details.
A-1
Cat. No. 24328L