2004 Instructions for Form 1040 (ALL) - Supreme Law Firm
2004 Instructions for Form 1040 (ALL) - Supreme Law Firm
2004 Instructions for Form 1040 (ALL) - Supreme Law Firm
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IF the person THEN the most line 31, reduce the premiums by the amount • Customs duties.<br />
was, at the end you may deduct on line 31.<br />
• Federal estate and gift taxes. But see<br />
of <strong>2004</strong>, age . . . is . . . Note. If, during <strong>2004</strong>, you were an eligible the instructions <strong>for</strong> line 27 on page A-6.<br />
trade adjustment assistance (TAA) recipi-<br />
40 or under $ 260 • Certain state and local taxes, includent,<br />
alternative TAA recipient, or Pension<br />
ing: tax on gasoline, car inspection fees,<br />
Benefit Guaranty Corporation pension reassessments<br />
<strong>for</strong> sidewalks or other im-<br />
41–50 $ 490 cipient, you must complete <strong>Form</strong> 8885<br />
be<strong>for</strong>e completing Schedule A, line 1. provements to your property, tax you paid<br />
51–60 $ 980<br />
When figuring the amount of insurance <strong>for</strong> someone else, and license fees (mar-<br />
61–70 $ 2,600<br />
premiums you can deduct on Schedule A, riage, driver’s, dog, etc.).<br />
do not include any health coverage tax<br />
71 or older $ 3,250<br />
credit advance payments shown in box 1 of<br />
<strong>Form</strong> 1099-H. Also, subtract the amount<br />
shown on <strong>Form</strong> 8885, line 4 (reduced by Line 5<br />
any advance payments shown on line 6 of<br />
that <strong>for</strong>m), from the total insurance premiums<br />
you<br />
State and Local Income or<br />
paid.<br />
Examples of Medical and<br />
Dental Payments You<br />
Cannot Deduct<br />
General Sales Taxes<br />
Whose medical and dental expenses can<br />
You can elect to deduct state<br />
you include? You can include medical and<br />
• The basic cost of Medicare insurance<br />
and local general sales taxes indental<br />
bills you paid <strong>for</strong>:<br />
(Medicare A).<br />
stead of state and local income<br />
• Yourself and your spouse. taxes. You cannot deduct<br />
• All dependents you claim on your re-<br />
If you were age 65 or older but<br />
both.<br />
turn.<br />
TIP not entitled to social security<br />
State and local income taxes.<br />
• Your child whom you do not claim as<br />
If you deduct<br />
benefits, you can deduct premia<br />
dependent because of the rules explained state and local income taxes, check box a<br />
ums you voluntarily paid <strong>for</strong> in Pub. 501 <strong>for</strong> children of divorced or sep- on line 5. Include on this line the state and<br />
Medicare A coverage.<br />
arated parents.<br />
local income taxes listed below.<br />
• Any person you could have claimed as • State and local income taxes withheld<br />
• The cost of diet food.<br />
a dependent on your return if that person from your salary during <strong>2004</strong>. Your<br />
• Cosmetic surgery unless it was neces- had not received $3,100 or more of gross <strong>Form</strong>(s) W-2 will show these amounts.<br />
sary to improve a de<strong>for</strong>mity related to a income or had not filed a joint return. <strong>Form</strong>s W-2G, 1099-G, 1099-R, and<br />
congenital abnormality, an injury from an Example. You provided over half of 1099-MISC may also show state and local<br />
accident or trauma, or a disfiguring disease. your mother’s support but cannot claim her income taxes withheld.<br />
• Life insurance or income protection as a dependent because she received wages • State and local income taxes paid in<br />
policies.<br />
of $3,100 in <strong>2004</strong>. You can include on line<br />
<strong>2004</strong> <strong>for</strong> a prior year, such as taxes paid<br />
1 any medical and dental expenses you paid<br />
• The Medicare tax on your wages and in <strong>2004</strong> <strong>for</strong> your mother.<br />
with your 2003 state or local income tax<br />
tips or the Medicare tax paid as part of the<br />
return. Do not include penalties or interest.<br />
self-employment tax or household employ- Reimbursements. If your insurance company<br />
paid the provider directly <strong>for</strong> part of<br />
• State and local estimated tax pay-<br />
ment taxes.<br />
your expenses, and you paid only the<br />
ments made during <strong>2004</strong>, including any<br />
• Nursing care <strong>for</strong> a healthy baby. But amount that remained, include on line 1 part of a prior year refund that you chose to<br />
you may be able to take a credit <strong>for</strong> the only the amount you paid. If you received a have credited to your <strong>2004</strong> state or local<br />
amount you paid. See the instructions <strong>for</strong> reimbursement in <strong>2004</strong> <strong>for</strong> medical or dental<br />
expenses you paid in <strong>2004</strong>, reduce your • Mandatory contributions you made to<br />
income taxes.<br />
<strong>Form</strong> <strong>1040</strong>, line 47.<br />
• Illegal operations or drugs.<br />
<strong>2004</strong> expenses by this amount. If you re- the Cali<strong>for</strong>nia, New Jersey, or New York<br />
ceived a reimbursement in <strong>2004</strong> <strong>for</strong> prior<br />
• Imported drugs not approved by the<br />
Nonoccupational Disability Benefit Fund,<br />
year medical or dental expenses, do not<br />
U.S. Food and Drug Administration<br />
Rhode Island Temporary Disability Benefit<br />
reduce your <strong>2004</strong> expenses by this amount.<br />
(FDA). This includes <strong>for</strong>eign-made ver- But if you deducted the expenses in the<br />
Fund, or Washington State Supplemental<br />
sions of U.S.-approved drugs manufactured earlier year and the deduction reduced your Workmen’s Compensation Fund.<br />
without FDA approval.<br />
tax, you must include the reimbursement in Do not reduce your deduction by any:<br />
• Nonprescription medicines (including<br />
income on <strong>Form</strong> <strong>1040</strong>, line 21. See Pub. • State or local income tax refund or<br />
502 <strong>for</strong> details on how to figure the amount<br />
nicotine gum and certain nicotine patches).<br />
to include.<br />
credit you expect to receive <strong>for</strong> <strong>2004</strong>, or<br />
• Travel your doctor told you to take <strong>for</strong><br />
• Refund of, or credit <strong>for</strong>, prior year<br />
Cafeteria plans.<br />
rest or a change.<br />
Do not include on line 1<br />
insurance premiums paid by an<br />
state and local income taxes you actually<br />
• Funeral, burial, or cremation costs. employer-sponsored health insurance plan<br />
received in <strong>2004</strong>. Instead, see the instruc-<br />
(cafeteria plan) unless the premiums are tions <strong>for</strong> <strong>Form</strong> <strong>1040</strong>, line 10.<br />
included in box 1 of your <strong>Form</strong>(s) W-2. State and local general sales taxes. If you<br />
Also, do not include any other medical and<br />
Line 1<br />
elect to deduct state and local general sales<br />
dental expenses paid by the plan unless the<br />
taxes, you must check box b on line 5. To<br />
Medical and Dental<br />
amount paid is included in box 1 of your<br />
<strong>Form</strong>(s) W-2.<br />
figure your deduction, you can use either of<br />
Expenses<br />
the following methods.<br />
Enter the total of your medical and dental<br />
1. The actual state and local general<br />
expenses (see page A-1), after you reduce<br />
sales taxes (including compensating use<br />
these expenses by any payments received<br />
Taxes You Paid<br />
taxes) you paid plus any selective sales<br />
from insurance or other sources. See Reimtaxes<br />
if the tax rate was the same as the<br />
bursements on this page.<br />
Taxes You Cannot Deduct general sales tax rate. For selective sales<br />
Do not <strong>for</strong>get to include insur- taxes on food, clothing, medical supplies,<br />
• Federal income and excise taxes.<br />
TIP ance premiums you paid <strong>for</strong><br />
and motor vehicles, the tax is deductible<br />
medical and dental care. But if • Social security, Medicare, federal un- even if the tax rate was less than the general<br />
you claimed the self-employed employment (FUTA), and railroad retire- sales tax rate. For selective sales taxes on<br />
health insurance deduction on <strong>Form</strong> <strong>1040</strong>, ment (RRTA) taxes. motor vehicles <strong>for</strong> which the tax rate was<br />
A-2