In error we included healthcare premiums of $7,612.26 as a medical expense when they were pre-tax payments as listed on the W-2 (125 plan).

[v-con]

The amended Turbo Tax federal results indicated we went from a refund to owing $975. Also PA refund went to $0.00.  When I went to move forward with Turbo Tax it indicated a $2,400 refund with is about $1,200 less than my initial erroneous filing.

[RBBrittain · Accepted solution]

That seems correct, since you claimed an excessive itemized deduction by deducting health insurance premiums that were already "deducted" from W-2 Box 1.

An amended return is an entirely different filing. Your original & amended returns together may still amount to a net refund. However, amending a return to add omitted income *or* (in your case) remove incorrect deductions is likely to result in additional tax due, even if less than your original refund.