topic Iowa 1040 in State tax filing

Iowa 1040

snsa — Sat, 22 Feb 2020 19:18:36 GMT

Turbo Tax is reducing the amount of Federal Estimated Tax payments as a deduction to IA state tax. Supposedly due to Federal Form 8959 Additional Medicare tax. This is not applicable in our situation. What is causing this error?

Re: Iowa 1040

AmyC — Wed, 26 Feb 2020 23:25:15 GMT

It is not an error to add the the Form 8959. You are correct that line 31 is for deducting your estimated payments made. Are you sure you don't have one of the forms listed below?

However, certain amounts must be added back on line 28, including the following:

Excess advance premium tax credit repayment reported on the federal 1040, Schedule 2, line 24.
Federal self-employment tax reported on the federal 1040, Schedule 2, line 4.
Unreported Social Security and Medicare tax on the federal 1040, Schedule 2, line 4.
Additional tax on IRAs and other qualified retirement plans reported on the federal 1040, Schedule 2, line 6.
Federal household employment tax reported on the federal 1040, Schedule 2, line 7a.
First-time homebuyer credit repayment reported on the federal 1040, Schedule 2, line 7b.
Additional Medicare tax from federal form 8959 reported on the federal 1040, Schedule 2, line 8a.
Other additional federal taxes reported on the federal 1040, Schedule 2, line 8c.

This is from the Iowa instructions for step 7, line 31.

If none of these apply to you, you may want to contact a specialist that can work through that section of the return with you.

Re: Iowa 1040

snsa — Thu, 27 Feb 2020 16:38:24 GMT

Thanks for the response. None of those situations applied to me. I corrected the amount with a manual entry in the place to show Federal Estimated Tax Payments.

Re: Iowa 1040 For 8959 Medicare

crboats — Sun, 15 Mar 2020 21:03:14 GMT

Form 8959 is filled out correctly for the Federal 1040. According to Iowa 1040 instructions by the IA Dept of Reve the Additional Medicare Tax Withholding should be included in Step 7 line 31 of the Iowa Return. For my Turbo Tax filing right now it is only including the Federal Withholding amounts shown on our W2's. I believe this is incorrect?

Also, based what is found in the IA Dept of Revenue sight,Step 7 line 28 should include the balance from from 8959 line 18 - Other federal taxes (Or Schedule 2 line 8a as shown below) My current Turbotax filing does not include this which I believe is also incorrect?

How can this be corrected?

Thank you

Re: Iowa 1040 For 8959 Medicare

KathrynG3 — Sat, 21 Mar 2020 22:57:49 GMT

It depends. The additional medicare tax reported on Form 8959 only occurs under certain circumstances.

It would be helpful to have a TurboTax ".tax2019" file that is experiencing this issue. You can send us a “diagnostic” file that has your “numbers” but not your personal information. If you would like to do this, here are the instructions:

On your menu bar at the very top, click “Online” and then “Send Tax File to Agent”. When you click to send, you will get a pop-up with a token number. Reply with the token number and I’ll be able to open a TurboTax Business file with your numbers but not your personal information. That may help diagnose the issue.