Page 3

Insurance premiums for certain non- dependents. You may have a medical or dental insurance policy that also cov- ers an individual who isn't your depend- ent (for example, a nondependent child under age 27). You can't deduct any pre- miums attributable to this individual, un- less he or she is a person described un- der Whose medical and dental expenses can you include, earlier. However, if you had family coverage when you add- ed this individual to your policy and your premiums didn't increase, you can enter on line 1 the full amount of your medical and dental insurance premiums. See Pub. 502 for more information. Reimbursements. If your insurance company paid the provider directly for part of your expenses, and you paid only the amount that remained, include on line 1 only the amount you paid. If you received a reimbursement in 2016 for medical or dental expenses you paid in 2016, reduce your 2016 expenses by this amount. If you received a reimburse- ment in 2016 for prior year medical or dental expenses, don't reduce your 2016 expenses by this amount. But if you de- ducted the expenses in the earlier year and the deduction reduced your tax, you must include the reimbursement in in- come on Form 1040, line 21. See Pub. 502 for details on how to figure the amount to include. Cafeteria plans. Don't include on line 1 insurance premiums paid by an employ- er-sponsored health insurance plan (caf- eteria plan) unless the premiums are in- cluded in box 1 of your Form(s) W-2. Also, don't include any other medical and dental expenses paid by the plan un- less the amount paid is included 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, 1952, 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, 1952. 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 you can't check a box on line 39a of Form 1040, but either you or your spouse was born before January 2, 1952, attach a statement to your return CAUTION ! indicating that you are applying the 7.5% threshold because you or 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 wasn't age 65 or older at the time of death, the 7.5% threshold doesn't 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, 1951, dies on February 13, 2016. The taxpayer is considered age 65 at the time of death and the 7.5% thresh- old applies. However, if the taxpayer died on February 12, 2016, the taxpayer isn't considered age 65 and the 7.5% threshold doesn't apply. Taxes You Paid Taxes You Can't Deduct Federal income and most excise taxes. Social security, Medicare, federal unemployment (FUTA), and railroad re- tirement (RRTA) taxes. Customs duties. Federal estate and gift taxes. But see Line 28, later. 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 can't 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 2016. 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 2016 for a prior year, such as taxes CAUTION ! paid with your 2015 state or local in- come tax return. Don't include penalties or interest. State and local estimated tax pay- ments made during 2016, including any part of a prior year refund that you chose to have credited to your 2016 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. Don't reduce your deduction by any: State or local income tax refund or credit you expect to receive for 2016, or Refund of, or credit for, prior year state and local income taxes you actually received in 2016. 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 2016 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. Don't include A-3