Ohio state return

[pkelley64]

Turbotax does not handle correctly how it computes the unreimbursed medical expenses and health care costs on their state return. I had to amend last years return and not use their software this year because of this. When I called for help I was given none. Anyone else have this problem?

[LenaH]

What was the issue you were having with the unreimbursed medical expenses and health care costs on the Ohio return? Can you please clarify the issue you were having? 

For the purposes of the state deduction, medical expenses consist of:

• Copays, deductibles and co-insurance;
• Prescription medication or insulin;
• Medical, dental and vision examinations and treatment by a certified health professional;
• Hospital costs and nursing care, including any eligible services provided at an assisted living facility; AND
• Eyeglasses, hearing aids, braces, crutches and wheelchairs.

These amounts are only deductible to the extent they exceed 7.5% of the taxpayer’s federal adjusted gross income. Refer to IRS Publication 502 for a comprehensive list of potentially eligible expenses.

This deduction is available for any of the above amounts that you paid for you, your spouse, or your dependents.

For more information, please see Ohio - Medical and Health Care Expenses

[Hal_Al]

There was a glitch in the Ohio software, last year (I haven't checked it this year yet). The transfer, from entering medical expenses in the federal section,  was not automatic.

At the screen titled, "Here's the Income that Ohio Handles Differently", you have to click start at Medical / health & long term care insurance. On the next screen click yes when asked if you paid health & long term care insurance premiums (even if you didn't). Otherwise the data you entered in the federal section did not transfer over. 

[pkelley64]

When turbotax asks the question whether you had employee sponsored healthcare for all or part of the year and you answer yes, it doesnt allow you to enter your amount out of pocket that's not reimbursed. We pay over 10,000 even though my husband's retirement company pays half. In Ohio, you can still deduct a portion of your out of pocket even if it is subsidized by an employee. Turbo tax acts like you can't.  If I try to bypass it and add the cost in with the medical expenses it doesnt calculate the amount I can deduct properly. Its 7.5 % of AGI subtracted by total healthcare and medical expenses. Hope I explained properly. I used the Ohio worksheet to determine my deduction amount.

[pkelley64]

In your explanation, medical expenses include co-insurance. I swear on the turbo tax site it does not say that. I thought there should have been a separate box for that. 

[Hal_Al]

The "separate boxes" are in the federal section.  Only the total transfers to the OH return.  In the OH interview there are only separate boxes for the OH specific items, e.g., long term care insurance.  Essentially, you're expected to know your total qualified medical expenses, whether you enter them in the federal section, or add them up manually.  It's a common situation (since the 2018 federal change) for a person to deduct medical on the OH return, but not federal. 

[pkelley64]

Well, thank you for clarifying but the turbo tax "specialist" I spoke to did not know this when I called and ask the question. The only thing is if you lump the health care co-insurance and medical expenses together, it does not fill out the worksheet properly and they want that sent with the return. On the worksheet they clearly want to know health care cost separate from other medical expenses.

[donkeller1]

the form where you enter the medical information does not properly adjust for the 7.5% limitation and allows 100% of the amount of medical expense entered to be reflected on the adjustment worksheet.  it calculated the 7.5% but doesn't include it in the calculation.  Thankfully i realized the error before filing my return and will manually adjust the amount before filing in 2024 still an issue.

[BrittanyS]

I would like to take a deeper look at this. However, I need a diagnostic file which is a copy of your tax return that has all of your personal information removed. You can send one to us by following the directions below:

TurboTax Online:

1. Sign into your online account.
2. Locate the Tax Tools on the left-hand side of the screen.
3. A drop-down will appear. Select Tools
4. On the pop-up screen, click on “Share my file with agent.”
5. This will generate a message that a diagnostic file gets sanitized and transmitted to us.
6. Please provide the Token Number that was generated in the response.

TurboTax Desktop/Download Versions:

1. Open your return.
2. Click the Online tab in the black bar across the top of TurboTax and select “Send Tax File to Agent” *
3. This will generate a message that a diagnostic copy will be created.  Click on OK and the tax file will be sanitized and transmitted to us.
4. Please provide the Token Number (including the dash) that was generated in the response.

*(If using a MAC, go to the menu at the top of the screen, select Help, then, “Send Tax File to Agent”)