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Unformatted text preview: A-1 Cat. No. 24328L Instructions for Schedules to Form 1040 2002 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 may deduct a part of your medical and dental expenses and unreim- bursed employee business expenses, and amounts you paid for certain taxes, interest, contributions, and miscellaneous expenses. You may 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. Changes To Note Medical and Dental Expenses. If you are claiming the health insurance credit for eli- gible recipients (see page 16 of the Form 1040 instructions), you need to complete Form 8885 to figure the amount to enter on Schedule A, line 1. Unreimbursed Employee Business Ex- penses. Do not include on Schedule A, line 20, any deduction for educator expenses you are claiming on Form 1040, line 23, or any tuition and fees deduction on Form 1040, line 26. Medical and Dental Expenses You may deduct only the part of your med- ical and dental expenses that exceeds 7.5% of the amount on Form 1040, line 36. Pub. 502 discusses the types of expenses that you may and may not deduct. It also explains when you may deduct capital ex- penses and special care expenses for disa- bled persons. If you received a distribution from an MSA in 2002, see Pub. 969 to figure your deduction. Examples of Medical and Dental Payments You May Deduct To the extent you were not reimbursed, you may deduct what you paid for: Insurance premiums for medical and dental care, including premiums for quali- fied long-term care contracts as defined in Pub. 502. But see Limit on Long-Term Care Premiums You May Deduct on this page. Reduce the insurance premiums by any self-employed health insurance deduc- tion you claimed on Form 1040, line 30. Also reduce the insurance premiums by any amount used to figure the health insurance credit for eligible recipients on Form 8885, line 11. You cannot deduct insurance premiums paid with pretax dol- lars because the premiums are not included in box 1 of your W-2 form(s). Prescription medicines or insulin. Acupuncturists, chiropractors, dentists, eye doctors, medical doctors, occupational therapists, osteopathic doctors, physical therapists, podiatrists, psychiatrists, psycho- analysts (medical care only), and psycholo- gists. Medical examinations, X-ray and lab- oratory services, insulin treatment, and whirlpool baths your doctor ordered. Nursing help (including your share of the employment taxes paid). If you paid someone to do both nursing and housework, you may deduct only the cost of the nursing help....
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This note was uploaded on 09/08/2011 for the course ART 125 taught by Professor Brianseymour during the Spring '11 term at Community College of Philadelphia.
- Spring '11