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Department of the Treasury Internal Revenue Service 2014 Instructions for Schedule A (Form 1040) 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 unre- imbursed employee business expenses, and amounts you paid for certain taxes, inter- est, contributions, and miscellaneous expenses. You can also deduct certain casualty and theft losses. If you and your spouse paid expenses jointly and are filing separate returns for 2014, see Pub. 504 to figure the portion of joint expenses that you can claim as itemiz- ed deductions. Do not include on Schedule A items deducted elsewhere, such as on Form 1040 or Schedule C, C-EZ, E, or F. CAUTION ! Section references are to the Internal Revenue Code unless otherwise noted. Future Developments. For the latest information about developments related to Schedule A (Form 1040) and its in- structions, such as legislation enacted af- ter they were published, go to www.irs.gov/schedulea. What's New Limit on itemized deductions. Itemiz- ed deductions for taxpayers with adjus- ted gross incomes above $152,525 may be reduced. See the instructions for line 29. Standard mileage rates. The standard mileage rate allowed for operating ex- penses for a car when you use it for medical reasons is 23.5 cents per mile. The business standard mileage rate is 56 cents per mile. The 2014 rate for use of your vehicle to do volunteer work for certain charitable organizations remains at 14 cents per mile. Medical and Dental Expenses You generally can deduct only the part of your medical and dental expenses that exceeds 10% of the amount on Form 1040, line 38. However, if either you or your spouse was born before January 2, 1950, you can deduct the part of your medical and dental expenses that ex- ceeds 7.5% of the amount on Form 1040, line 38. See the instructions for line 3. Pub. 502 discusses the types of ex- penses you can and cannot deduct. It al- so explains when you can deduct capital expenses and special care expenses for disabled persons. If you received a distribution from a health savings account or a medical savings account in 2014, see Pub. 969 to figure your de- duction. Examples of Medical and Dental Payments You Can Deduct To the extent you were not reimbursed, you can deduct what you paid for: Insurance premiums for medical and dental care, including premiums for qualified long-term care insurance con- tracts as defined in Pub. 502. But see Limit on long-term care premiums you can deduct, later. Reduce the insurance premiums by any self-employed health insurance deduction you claimed on Form 1040, line 29. You cannot deduct insurance premiums paid with pretax dollars because the premiums are not in- cluded in box 1 of your Form(s) W-2. If CAUTION ! you are a retired public safety officer, you cannot deduct any premiums you paid to the extent they were paid for with a tax-free distribution from your re- tirement plan. Prescription medicines or insulin. Acupuncturists, chiropractors, den- tists, eye doctors, medical doctors, occu- pational therapists, osteopathic doctors, physical therapists, podiatrists, psychia- trists, psychoanalysts (medical care on- ly), and psychologists. Medical examinations, X-ray and laboratory services, insulin treatment, and whirlpool baths your doctor ordered. Diagnostic tests, such as a full-body scan, pregnancy test, or blood sugar test kit. Nursing help (including your share of the employment taxes paid). If you paid someone to do both nursing and housework, you can deduct only the cost of the nursing help. Hospital care (including meals and lodging), clinic costs, and lab fees. Qualified long-term care services (see Pub. 502). The supplemental part of Medicare insurance (Medicare B). The premiums you pay for Medi- care Part D insurance. A program to stop smoking and for prescription medicines to alleviate nico- tine withdrawal. A-1 Jan 05, 2015 Cat. No. 53061X