Ammending 2019 return for Malpractice Tail Payment

Forum|Forum|5 years ago
February 9, 2021
1 reply
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Please help - My 2019 return was filed, accepted, and I have completed payment. I recently forgot to include a $90,000 payment for medical malpractice insurance in my return. I am trying to go through TurboTax to file an amended return. I am trying to figure out if I would qualify for this deduction (and if so, would it be for both state/federal). As I am an employee, I've put it under 'Job-related Expenses'. When I go to calculate my refund, I get a significant state refund, but my federal return is 0. If I switch to itemizing my return, I owe more federal taxes, but it's my understanding the only way to claim this deduction is to itemize. Obviously, I don't want to amend my return and end up paying more! Thank you.

MinhT1

Level 15

If you are an employee, the malpractice payment is a job-related expense. And job-related expenses are no longer deductible on your Federal tax return.

In fact, under the Tax Cuts and Jobs Act, the itemized deductions for job-related expenses subject to the 2% of AGI floor are suspended for expenses incurred after December 31, 2017 through 2025.

Certain states (Alabama, Arkansas, California, Hawaii, Minnesota, New York and Pennsylvania) still allow some deduction of job-related expenses.

Therefore, if you are a resident of one of the above states, you could file an amended state return to claim that expense.

There is no need to file a federal amended return as there is no deduction.

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echangchienAuthor

Level 2

Are you saying even if I had claimed this deduction when I originally filed it wouldn’t have mattered? I do live in CA so I plan on submitting an addended state return; do I have this option through Turbotax? Do I still submit a 1040X?