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After you file
I was just wondering the same thing after reading the Form 1 instructions -- wondering whether Medicare premiums paid directly out of Social Security benefits can be listed as a subtraction on Line 11 -- because the Form 1 instructions say that premiums which are deducted pre-tax may not be included in the subtraction, and Social Security benefits are not taxable in Wisconsin.
However, after searching the Internet for a while trying to confirm this, I ended up realizing that just above this in the same instructions it says "If you are receiving Social Security benefits, the amount paid for medical care insurance INCLUDES the amount deducted from your monthly benefit for Medicare insurance (for example, Parts B and D)."
That seems to be pretty clearly saying that it is actually OK to include Parts B and D premiums paid via Social Security in this subtraction.
(I assume they knew most people would be also subtracting their Social Security income from taxable income via Line 9, and are saying that they may also subtract those Parts B and D premiums in Line 11 regardless.)
maglib or anyone else, am I interpreting this wrong, or not thinking of something?
If I am correct, does this mean there is an error in the TurboTax software? I didn't use it for my dad's taxes this year, so I don't know if it would have given him the subtraction or not. But apparently it did not give kandmmace the subtraction.
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....There is a possible weird interpretation of the instructions in which maybe the premiums should NOT be included in the subtraction. Maybe they are just saying that Parts B and D premiums paid via Social Security are included in their definition of the term "medical care insurance", but are not trying to imply that this means you can subtract them. But then why would they even state that here in the first place? So it seems like that would be a weird interpretation.
Or maybe some people DIDN'T subtract Social Security benefits via Line 9 for some strange reason (also very weird), but still want to subtract the insurance premiums paid via Social Security benefits? So therefore instructions needed to say, "yes, Parts B and D premiums count as "medical care insurance" and can be subtracted, but not if you also subtract your Social Security benefits because they are pre-tax"? This explanation and interpretation also seems too weird. But I'm not an expert.
However, after searching the Internet for a while trying to confirm this, I ended up realizing that just above this in the same instructions it says "If you are receiving Social Security benefits, the amount paid for medical care insurance INCLUDES the amount deducted from your monthly benefit for Medicare insurance (for example, Parts B and D)."
That seems to be pretty clearly saying that it is actually OK to include Parts B and D premiums paid via Social Security in this subtraction.
(I assume they knew most people would be also subtracting their Social Security income from taxable income via Line 9, and are saying that they may also subtract those Parts B and D premiums in Line 11 regardless.)
maglib or anyone else, am I interpreting this wrong, or not thinking of something?
If I am correct, does this mean there is an error in the TurboTax software? I didn't use it for my dad's taxes this year, so I don't know if it would have given him the subtraction or not. But apparently it did not give kandmmace the subtraction.
-----------
....There is a possible weird interpretation of the instructions in which maybe the premiums should NOT be included in the subtraction. Maybe they are just saying that Parts B and D premiums paid via Social Security are included in their definition of the term "medical care insurance", but are not trying to imply that this means you can subtract them. But then why would they even state that here in the first place? So it seems like that would be a weird interpretation.
Or maybe some people DIDN'T subtract Social Security benefits via Line 9 for some strange reason (also very weird), but still want to subtract the insurance premiums paid via Social Security benefits? So therefore instructions needed to say, "yes, Parts B and D premiums count as "medical care insurance" and can be subtracted, but not if you also subtract your Social Security benefits because they are pre-tax"? This explanation and interpretation also seems too weird. But I'm not an expert.
‎June 5, 2019
11:44 PM