Instructions For Filing: Personal & School District Income Tax - Department Of Taxation State Of Ohio - 2014 Page 29
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602014 Ohio Forms IT 1040EZ / IT 1040 / Instructions
Example 3: From Jan. 1 through June 30,
is not available to self-employed taxpayers
by self-employed individuals. For additional
Sue paid unsubsidized medical care insur-
because such taxpayers deduct all of their
information, visit the Ohio Department of In-
ance premiums. Sue became eligible for
family accident and health insurance premi-
surance's Web site at insurance.ohio.gov.
Medicare on July 1. On that same day, she
ums on federal form 1040 before arriving at
Example 2: Sue’s employer offers a health
begins to pay Medicare Part B premiums
federal adjusted gross income.
insurance plan that offers coverage for
and $50 of supplemental medical care insur-
If you answer "Yes" to either of questions
children up to the age of 29. Sue enrolls
ance premiums each month. Sue can claim
below, you are not eligible to take these
in coverage to cover her 28-year-old son.
her unsubsidized medical care insurance
deductions:
Sue’s son earns $25,000 per year, lives on
premiums paid Jan. 1 through June 30 on
his own and pays for his own support. Sue’s
line 8. Sue can also claim her supplemental
1. Did you claim the self-employed health
son is not eligible for any subsidized health
medical care premiums paid from July 1
insurance deduction on Line 29 of federal
plan through his employer, nor is he eligible
through Dec. 31 on line 2a and her Medicare
form 1040?
Yes
No
for Medicare or Medicaid. Sue’s employer
Part B premiums on line 2.
2. During the year, was your qualifying
pays $5,000 in health insurance premiums
relative eligible for medical care coverage
Line 7 – Unreimbursed Long-Term Care
on behalf of her son. Under federal law,
Insurance Premiums
through Medicare or Medicaid?
Yes
No
Sue’s son is not a dependent because he
Enter on line 7 of the worksheet on page 28
fails to meet the income and support test of
For line 9 only, the defi nition of ”qualifying
the amounts paid during 2014 for unreim-
a qualifying relative. Thus, the $5,000 paid
relative” is expanded to include those who
bursed long-term care insurance premiums
on behalf of Sue’s son is imputed as income
would be a qualifying relative under the
for you, your spouse and your dependents
and included in her federal adjusted gross
Internal Revenue Code defi nition, without
that covers nursing home care, home care
income. However, in Ohio, Sue can deduct
regard to the gross income test or the sup-
or adult day care.
the $5,000 from gross income on line 9 of
port test. For purposes of this deduction
the worksheet on page 28 because her son
only, a "qualifying relative" is a citizen or
Line 8 – Unsubsidized Medical Care
meets the defi nition of a qualifying relative
national of the United States or a resident
Insurance Premiums
and thus qualifi es for this deduction.
of the United States, Mexico or Canada that
If you were not eligible to participate in a
Line 46b – Medical Savings Account
subsidized health care plan, enter on line 8
also bears one of the following relationships
to the taxpayer:
of the worksheet the costs for unsubsidized
You may be able to deduct the amount of
A child or a descendent of a child.
medical care insurance premiums you paid
funds you deposited into a medical savings
A brother, sister, stepbrother or stepsister.
for dental, vision and health insurance for
account. If fi ling a joint return, your spouse
you, your spouse and dependents. If you
The father or mother, or an ancestor of
may also be able to deduct his/her funds
selected C for line 1, refer to Example 3.
either.
deposited into his/her medical savings ac-
A stepfather or stepmother.
Line 9 – Accident and Health
count. For 2014 the maximum amount of
A son or daughter of a brother or sister of
Insurance Plan and Medical Expense
deposited funds you may be able to deduct
the taxpayer.
Reimbursement for Qualifying
is $4,569. If fi ling a joint return, each spouse
A brother or sister of the father or mother
Relatives
may deduct up to $4,569 of funds deposited
of the taxpayer.
You may be able to take a deduction for
into his/her account for a maximum joint de-
A son-in-law, daughter-in-law, father-
contributions made by your employer for
duction of $9,138. Any investment income or
in-law, mother-in-law, brother-in-law or
accident and health insurance for "qualify-
interest earned on the funds deposited into a
sister-in-law.
ing relatives.” You are permitted to deduct
medical savings account is also deductible if
An individual (other than an individual
income included in your federal adjusted
the income or interest is included in your
who at any time during the taxable year
gross income on the basis of an employer-
federal adjusted gross income (line 1 of
was the spouse of the taxpayer) who, for
paid plan covering a “qualifying relative.”
your Ohio form IT 1040). Note: You must
the taxable year of the taxpayer, has the
See the definition below of a qualifying
reduce the amount of this deduction by any
same principal place of abode as the tax-
relative for this deduction.
amount that you claimed on line 25 of your
payer and is a member of the taxpayer’s
federal form 1040.
household.
You are also permitted to deduct amounts
received as an employee through an acci-
To determine if you are eligible for this
Below are a few examples of a taxpayer who
dent and health insurance plan that are paid,
deduction, complete the medical savings
can or cannot take this deduction:
directly or indirectly, to you to reimburse you
account worksheet on page 24. For further
Example 1: Sue who is a self-employed
for expenses incurred for the medical care
information, see "What Is a Medical Savings
independent contractor purchases an ac-
of the same qualifying relatives. See the
Account and What Are the Qualifi cations?"
defi nition below of a qualifying relative for
cident and health insurance plan for herself,
on page 11.
her husband and her 25-year-old daughter.
this deduction.
Example: Bob and Sue file a joint tax
Sue is a sole proprietor and earns a net profi t
This deduction is only available for “quali-
return. Bob contributed $2,000 to his medi-
of $100,000. She pays accident and health
fying relatives” who are not eligible to
cal savings account while Sue contributed
insurance premiums of $10,000 a year. The
participate in any subsidized medical care
$5,000 to hers. Bob's account earned $120
company does not offer health insurance
insurance plan offered by their employer and
in interest and Sue's earned $300, which
coverage for her employees. Her daughter
who are not eligible for Medicare or Medic-
were included in their federal adjusted
works with her and is paid an annual salary
aid. A subsidized health insurance plan is a
gross income. These amounts are not
of $25,000, lives in her own home and is self-
plan where your employer, your spouse's
deductible in arriving at federal adjusted
supporting. Sue cannot include the $10,000
employer, a retirement plan or Medicare
income. They are entitled to a medical sav-
on line 9 of the worksheet because she
pays any portion of the total premium for
ings account deduction of $6,989 ($2,000
took the deduction on line 29 of the federal
health insurance coverage. The deduction
for Bob's contribution, $4,569 for Sue's
return for health insurance premiums paid
- 29 -
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