Iowa 1040 Not Deducting Excess Medicare Tax Withheld

[Moonlight Graham]

Form 8959 is filled out correctly for the Federal 1040.  According to the crystal clear Iowa 1040 instructions from the IA Department of Revenue, the Additional Medicare Tax Withholding from IRS form 8959 line 24 should be included in Iowa 1040 line 31 while the Total Additional Medicare Tax Incurred from IRS form 8959 line 18 (or IRS Schedule 2 line 8a) should be included in line 28 of the Iowa Return.  Turbotax is not populating either amount in the Iowa 1040, and in looking back at prior years, I can see that Turbotax has failed to populate these amounts ever since the Additional Medicare Tax was implemented in 2013.  In cases where the additional withholding exceeds the additional incurred, the result is a missed deduction on the Iowa return and an overpayment of Iowa taxes.  This should be a simple data flow from Form 8959 and yet has been missing for the past 7 years.  What say you, Intuit??

[SteamTrain]

@Moonlight Graham 

This is primarily a public forum, and not a direct link to Customer Support  ...... There's far too much detail needed to figure out what's going on here for any of us users to work thru. 

As another long time TTX user, I've done some modeling, and see that the Form 8959 line 18 is not populating line 28 of the IA 1040...but I can't know what other entries might also be affecting this.  The other stuff you mentioned... I don't yet know how to set up my test file to create these other values (unless I'm willing to spend all morning figuring it out). Hmmm.... Also, be careful,  the IA 1040 line 28 is an addition to IA income, while the part included in IA1040 line 31 is an IA  deduction.

Since there may be some validity to this error you seem to have found, you should contact TTX Customer Support and they can start an investigation.  What they will need to do is to have you create a "Diagnostic" copy of your tax return (they will tell you how), that they get when you create it.  The "Diagnostic" copy will remove all your personal information, but save all your other data so that they can track down the problem with the Iowa-specific software team.

Customer Support is "supposedly" open 5AM-5PM PACIFIC time, and you can get a phone number to call them only when they are open (they "seem" to indicate they are still open weekends...but I'm skeptical, so you may have to wait until Monday..I'm also skeptical of the start time..might be 8AM PACIFIC by now) :

https://ttlc.intuit.com/community/using-turbotax/help/what-is-the-turbotax-phone-number/00/25632

Good Luck

Shoeless Joe

[Twinklm]

Did you ever hear from Turbo Tax on this as I see the same thing on my Iowa form?

[Moonlight Graham]

Unfortunately I never heard from any TurboTax personnel on this issue.  I was forced to work around it by making manual entries in the "Other" line of the Smart Worksheet for IA 1040 Line 28 and the "Other federal income tax withholding" line of the Smart Worksheet for IA 1040 Line 31.  These worksheets are visible when you use the View>Forms menu to access the IA 1040 Form itself in TurboTax.

[Moonlight Graham]

Update:  I managed to reach the TurboTax support team this evening and after two long waits sandwiched around a transfer, I was connected to a competent member of the "Tax Advice" team.  She reviewed my feedback and agreed this is a shortcoming in the TurboTax State software for Iowa.  She said she would forward this finding on to the team that is responsible but could make no promises it would be fixed anytime soon.  At least there is hope.