Insurance premiums you can include in your medical expenses insurance premiums you pay for policies that cover medical cal care. Medical care policies can provide payment for treatments that includes:

• Hospitalization, surgical services, X-rays,
• Prescription drugs and insulin,
• Dental care,
• Replacement of lost or damaged contact lenses, and
• Long-term care (subject to additional limitations). For more information, see Qualified Long-Term care Insurance Contracts in Publication 502.

If you have a policy that provides payments for other than medical care, you can include the premiums for the medical care part of the policy if the charge for the medical care part is reasonable. The cost of the medical part must be separately stated in the insurance contract or given to you in a separate statement.

When figuring the amount of insurance premiums you can include in medical expenses on Schedule A, do not include any health coverage tax credit advance payments shown in box 1 of your Form 1099-H, Health Coverage Tax Credit (HCTC) Advance Payments. Also, do not include insurance premiums attributable to a non-dependant child under age 27 if your premiums increased as a result of adding this child to your policy.

You cannot have more than $2,500 in salary reduction contributions made to a health FSA for plan years beginning after 2012. Health flexible spending arrangement (health FSA). If your employer provides a health FSA that qualifies as an accident or health plan, the amount of your salary reduction, and reimbursements of your medical care expenses, in most cases, are not included in your income.

Note: Health FSAs are subject to a $2,500 limit on salary reduction contributions for plan years beginning after 2012. The $2,500 limit is subject to an inflation adjustment for plan years beginning after 2013.

Ponzi-type Investment Schemes for 2013. There are new rules for how to claim a theft loss deduction on Form 4684 due to a Ponzi-type investment scheme. There is a New Section C of Form 4684 for Ponzi-type investment schemes. Section C of Form 4684 is new for 2013. You must complete Section C if you are claiming a theft loss deduction due to a Ponzi-type investment scheme and are using Revenue Procedure 2009-20, as modified by Revenue Procedure 2011-58. Section C of form 4684 replaces Appendix A in Revenue Procedure 2009-20. You do not need to complete Appendix A.

Losses from Ponzi-type investment schemes. If you had a loss from a Ponzi-type investment scheme, check-out: i) Revenue Ruling 2009-9, 2009-14 I.R.B. 735, ii) Revenue Procedure 2009-20, 2009-14 I.R.B. 749, iii) Revenue Procedure 2011-58, 2011-50 I.R.B. 849

If you qualify to use Revenue Procedure 2009-20, as modified by Revenue Procedure 2011-58, and you choose to follow the procedures in the guidance, you must first fill out Section C of Form 4684 to determine the amount to enter on Section B, line 28. Skip line 19 to 27. Section C of Form 4684 replaces Appendix A in Revenue Procedure 2009-20. You do not need to complete Appendix A. If you choose not to use the procedures in Revenue Procedure 2009-20, you may claim your theft loss by filling out Section B, lines 19 to 39, as appropriate.