IA Department of Revenue letter re: Line 18 of 1040 Iowa tax return

Forum|Forum|7 years ago
June 19, 2019
10 replies
75 views

I received a letter from the Iowa Department of Revenue re: my 2017 taxes. The letter states I owe additional taxes because $12,297 was stated on the tax form as a health insurance premium adjustment to income. This is from DD on my W-2. I NEVER entered this amount in turbo tax when processing my taxes. This also happened for 2016. However, for years prior to 2016 and after 2017, this did not pull to my tax form. I don't feel I should pay the extra tax for 2017 because of an error in the turbo tax programming. I did pay for 2016, but now I'm just angry that this error occurred 2 years in a row. Because the IA Department of Revenue is stating I owe an additional tax of $954.44 before June 30th, this should be paid by Turbo Tax. Please let me know when this will be taken care of. Thank you.

DoninGA

Level 15

Form W-2 Line 12 Code DD - DD—Cost of employer-sponsored health coverage. The amount
reported with code DD is not taxable

The amount reported on your W-2 on Line 12 with a code of DD was not entered on your tax return. It is not taxable. What exactly is the Iowa DOR referring to in the letter you received?

HazyMusicIA

Level 2

Received the same letter and situation from Iowa. TurboTax listed the $ amount from W-2 box DD on line 18 Health Insurance Premium in the Step 6 Adjustments to Income section. Here's a link to the 2018 form which is identical to 2017 so you can see where the adjustment occurred: https://tax.iowa.gov/sites/files/idr/forms1/2018IA1040%2841001%29.pdf

This didn't occur in 2016 or 2018 - 0's were listed by the TurboTax program. Looks like there was an error with the program in 2017 as I didn't manually enter this amount.

HazyMusicIA

Level 2

Updating my prior post - the reality is we do all owe the actual tax to the Iowa Department of Revenue. What you can do is file a claim with TurboTax for the penalty that's been assessed. Here's the link: https://ttlc.intuit.com/community/charges-and-fees/help/how-do-i-submit-a-claim-under-the-turbotax-100-accurate-calculation-guarantee-test-version/01/27602#M66

I just completed the form, scanned the notice from IA and uploaded the documents. You'll get assigned a case # and an analyst will reach out with questions per the instructions. Process was super simple - the refund of the penalty should be fairly straightforward as none of us input the deduction, the software did.

Cholland

Level 2

I got the same letter and called Turbo Tax. They admitted the problem but have done nothing. I just got off phone with the state of Iowa and they are saying I have to pay regardless. Has anyone made any ground regarding this problem. I owe 1147.00!!!!!

jmorse18

Level 2

I've had the same thing happen...I received a letter today stating that we owe $1560.24. In looking at the tax docs from 2017, it appears that items from line DD were carried over to the state form (Step 6 - Adjustments to Income - Line 18). I did not enter values in for my state tax return...I just allowed TT to populate the information and assumed that everything was applied correctly.

In cross checking this with the 2016 and 2018 forms, this didn't happen and I took the same steps to input and process my tax information as I always do.

I'd like to be contacted about how Intuit plans to resolve this.

Cholland

Level 2

I called them and talked to a tax professional, but no help. Think needs to go higher up the chain somehow. I also would like to be contacted as to how this will be fixed. I never entered these numbers.

CiceroBC

Level 2

Same issue here for 2016 and 2017. After receiving a call back from the Iowa Department of Revenue, the assessor leaving a message specifically said, "This happens a lot on TurboTax."
Once is a mistake. Two years in a row is a problem. Being a known issue at the Iowa Department of Revenue is unacceptable. TurboTax, you just lost a customer.