Iowa 2017 - Has claimed that the Taxes done are wrong. Letter. The DD Info W2 is automatically used on the State taxes as well and reduced the overall taxable income.

Received a Letter from the State of Iowa that I owe them taxes.

Used the TurboTax online product to file my taxes with no complications. Straightforward W2 from one employer. Auto imported as well. Did not enter anything manually. No itemized deductions.

Problem Area: The line DD on W2 has an amount; which has been imported onto the State area as well. This number has been deducted from the overall income before the taxable income has been calculated by TurboTax. Not sure why.

However, the letter from the State of IOWA claims that "The code DD on your W2 is the amount your employer paid for your health insurance and does not qualify for the adjustment".

Whats my next step?