Schedule A - Itemized Deductions
Schedule A is used to figure itemized deductions for the taxpayer. In most cases, the federal income tax will be less if the taxpayer takes the larger of the itemized deductions or the standard deduction. A portion of medical and dental expenses, un-reimbursed employee business expenses, amounts paid for certain taxes, interest, contributions, and miscellaneous expenses can be deducted using this form.
Examples of Medical and Dental Payments you can deduct:
Insurance premiums, prescription medicines or insulin, medical examinations, X-ray and laboratory services, nursing help, hospital care, long-term care services, the supplemental part of Medicare insurance (Medicare B), a program to stop smoking, eyeglasses, contact lenses, hearing aids, laser eye surgery, ambulance service.
The standard mileage rate allowed for out-of-pocket expenses for a care when you use it for medical reasons is:
*15 cents a mile from January 1 to August 31, 2005
*22cents amile from September 1 to December 31, 2005
State and Local Income or General Sales Taxes:
You can elect to deduct state and local general sales taxes instead of state and local income taxes. You cannot deduct both. State and local income taxes include the state taxes withheld from your salary, any state and local taxes paid in the prior year, state estimated payments. General sales taxes include the actual tax you paid or the optional state sales tax tables. If you use the sales tax tables you can add to the table amount any state and local general sales taxes you paid on motor vehicles and boats.