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

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