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income on Form 1040, line 21. See Pub. 502 for details on how to figure the amount to include. Cafeteria plans. Do not include on line 1 insurance premiums paid by an employer-sponsored health insurance plan (cafeteria plan) unless the premi- ums are included in box 1 of your Form(s) W-2. Also, do not include any other medical and dental expenses paid by the plan unless the amount paid is in- cluded in box 1 of your Form(s) W-2. Line 3 Multiply line 2 by 10%. But, if either you or your spouse was born before Jan- uary 2, 1950, multiply line 2 by 7.5%. The 7.5% rate applies whether you file a joint or separate return as long as one spouse was born before January 2, 1950. If you are claiming the 7.5% threshold amount for medical and dental expenses, make sure you check the appropriate box(es) on line 39a of Form 1040 for your situa- tion. If your filing status is married fil- ing separately or head of household, and you were not born before January 2, 1950, attach a statement to your re- turn indicating that you are taking the 7.5% threshold because your spouse meets the requirements. Death before age 65. A taxpayer is considered to be age 65 on the day be- fore the taxpayer's 65th birthday. If the taxpayer was not age 65 or older at the time of death, the 7.5% threshold does not apply for that taxpayer or the spouse of that taxpayer who is under age 65. For example, a taxpayer who was born on February 14, 1949, dies on February 13, 2014. The taxpayer is considered age 65 at the time of death and the 7.5% threshold applies. However, if the tax- payer died on February 12, 2014, the taxpayer is not considered age 65 and the 7.5% threshold does not apply. Taxes You Paid Taxes You Cannot Deduct Federal income and most excise taxes. Social security, Medicare, federal unemployment (FUTA), and railroad re- tirement (RRTA) taxes. CAUTION ! Customs duties. Federal estate and gift taxes. But see the instructions for Line 28. Certain state and local taxes, in- cluding: tax on gasoline, car inspection fees, assessments for sidewalks or other improvements to your property, tax you paid for someone else, and license fees (marriage, driver's, dog, etc.). Line 5 You can elect to deduct state and local general sales taxes instead of state and local in- come taxes. You cannot deduct both. State and Local Income Taxes If you elect to deduct state and local in- come taxes, you must check box a on line 5. Include on this line the state and local income taxes listed next. State and local income taxes with- held from your salary during 2014. Your Form(s) W-2 will show these amounts. Forms W-2G, 1099-G, 1099-R, and 1099-MISC may also show state and lo- cal income taxes withheld. State and local income taxes paid in 2014 for a prior year, such as taxes paid with your 2013 state or local in- come tax return. Do not include penal- ties or interest. State and local estimated tax pay- ments made during 2014, including any part of a prior year refund that you chose to have credited to your 2014 state or lo- cal income taxes. Mandatory contributions you made to the California, New Jersey, or New York Nonoccupational Disability Bene- fit Fund, Rhode Island Temporary Disa- bility Benefit Fund, or Washington State Supplemental Workmen's Compensation Fund. Mandatory contributions to the Alaska, California, New Jersey, or Penn- sylvania state unemployment fund. Mandatory contributions to state family leave programs, such as the New Jersey Family Leave Insurance (FLI) program and the California Paid Family Leave program. Do not reduce your deduction by any: State or local income tax refund or credit you expect to receive for 2014, or Refund of, or credit for, prior year state and local income taxes you actually CAUTION ! received in 2014. Instead, see the in- structions for Form 1040, line 10. State and Local General Sales Taxes If you elect to deduct state and local general sales taxes, you must check box b on line 5. To figure your deduction, you can use either your actual expenses or the optional sales tax tables. Actual Expenses Generally, you can deduct the actual state and local general sales taxes (in- cluding compensating use taxes) you paid in 2014 if the tax rate was the same as the general sales tax rate. However, sales taxes on food, clothing, medical supplies, and motor vehicles are deducti- ble as a general sales tax even if the tax rate was less than the general sales tax rate. If you paid sales tax on a motor ve- hicle at a rate higher than the general sales tax rate, you can deduct only the amount of tax that you would have paid at the general sales tax rate on that vehi- cle. Motor vehicles include cars, motor- cycles, motor homes, recreational vehi- cles, sport utility vehicles, trucks, vans, and off-road vehicles. Also include any state and local general sales taxes paid for a leased motor vehicle. Do not in- clude sales taxes paid on items used in your trade or business. You must keep your actual re- ceipts showing general sales taxes paid to use this method. Refund of general sales taxes. If you received a refund of state or local gener- al sales taxes in 2014 for amounts paid in 2014, reduce your actual 2014 state and local general sales taxes by this amount. If you received a refund of state or local general sales taxes in 2014 for prior year purchases, do not reduce your 2014 state and local general sales taxes by this amount. But if you deducted your actual state and local general sales taxes in the earlier year and the deduc- tion reduced your tax, you may have to include the refund in income on Form 1040, line 21. See Recoveries in Pub. 525 for details. Optional Sales Tax Tables Instead of using your actual expenses, you can use the 2014 Optional State CAUTION ! A-3