Insurance premium deduction in Wisconsin

[markklos]

I am married and live in Wisconsin.  I pay about 2K in premiums for my Medicare insurance that is deducted from my Social Security.  My 63 yo wife paid about 9K for medical insurance.  All of our income is from SS and 50K in dividends.  Turbo Tax is not treating these insurance premiums as deductible.  Does anyone know why?  Should I override the system and enter these?

[BillM223]

Are you getting the Standard Deduction? Remember that only Medical Expenses in excess of 7.5% of your AGI can be deducted on Schedule A.

This reduction to your Schedule A expenses may mean that you don't have enough itemized deductions to cause TurboTax to create a Schedule A.

Or do you have another reason for thinking that TurboTax is not making these items deductible?

[Carl]

I just started receiving SS myself. I'm also under 65 so don't have to deal with the medicare stuff yet. However, I though that what was withheld from your SS for Medicare was "NOT" included in box 3 of the 1099-SSA. Am I wrong on that front?

[markklos]

Medical insurance premiums that are paid with after tax dollars can be subtracted from income in Wisconsin. The amount subtracted does not need to exceed 7.5% of income.  I entered my premium payments in the federal section of  Tubotax (about 10K) but it does not calculate the subtraction when I do my Wisconsin state taxes.  This seems to be a flaw in turbotax.  What should I do?

[BillM223]

The $2k was entered on your SSA-1099, right? In which box in the WI interview was the $9k entered? My test worked OK, so I have assume that I didn't enter it the same way you did.

P.S. was your spouse's insurance marketplace insurance?

@markklos 

[markklos]

You are correct the 2K was for Medicare and the 9k was for ObamaCare for my spouse who is under age 65. I entered all of this information in the Wisconsin section as instructed and it still will not populate on form SB the only thing I can do is click on the line on SB for medical insurance and enter it myself. It turns red when I do this. Is this okay

[DMarkM1]

No, the override will not allow you to e-file.  There is a reason zero is flowing to your Form SB.  

In the "Forms view" follow these steps to see what is happening on your WI Schedule SB:

1. Open form
2. Find the "Medical Ins Wks" in the WI forms list
3. Select/open form
4. Scroll down to "Worksheet 2 - Others" on that worksheet
5. Verify Line 2 is where your insurance entry should be
6. The remainder of the form is calculated from other entries in your returns
7. Line 9 is the amount that goes to your WI SB

This should help explain why zero is going to your WI form SB.  

Since you mention in another post that you have Marketplace Insurance Line 4 on the worksheet may be applicable.  Also, if Line 8 is zero indicating your taxable income is zero before subtracting medical premiums then that would bring a zero to the form SB as well.