Wisconsin subtraction for medical insurance premiums

[markklos]

Wisconsin allows you to subtract medical premiums paid with after tax income even if you do not itemize deductions and claim the standard deduction.  https://www.revenue.wi.gov/Pages/FAQS/pcs-medins.aspx#:~:text=The%20subtraction%20is%20only%20allowe...  When I enter this premium information in the Wisconsin subtraction from income section of Turbotax it does not correctly transfer this to form SB and in my case I miss out on a $500 reduction in Wisconsin taxes.  This has been a problem with Turbotax for many years and there are multiple posts about this problem.  It has not been fixed.  I realize you can only deduct expenses for all forms of medical care if it exceeds 7.5 of your income but this unique subtraction only for after tax premiums is a different issue.  I wish Turbotax with fix this.

[DMarkM1]

Please clarify which version of TurboTax products you are working in?  I have been unable to duplicate what you are seeing in my Home/Business desktop version.  When I make a "Medical Care Premium Paid" entry in the WI state interview in the "Income" section, on the page titled "Medical Care Insurance," the form SB and the Form 1 are updated and the WI tax is reduced.  

[markklos]

I bought the edition from Sams club and downloaded it to my pc.  I went back and I cannot find a section called income in the state tax area.  I did find one called Here is how Wisconsin handless differently differently.   I clicked on Medical Insurance and on the next page I entered $11080 for employee or unemployed as the amount I contributed to my insurance premiums.  Despite double checking this several times it still does not transfer to Form SB   The only thing transfers to SB is the amount of SS that was taxed by the federal government

[DMarkM1 · Accepted solution]

I understand.  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.

[jmrums]

Have the same problem with my deluxe version disk.

Just realized that insurance deduction is not being subtracted on State Schedule SB.  I have also checked 2022 return and it is correct on there

[DawnC]

Go through the state interview and enter it in there.   You will come to a screen that says, How Wisconsin handles income differently.   Scroll down to Medical, Care Insurance, click Start, and enter your information.   If you don't see the entry, follow Mark's steps above to review Form SB.   

1. Click on Forms at the top
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

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.

[jmrums]

That solved the problem, but that doesn't fix the software issue.

Not very happy with TurboTax at the moment!

[markklos]

The turbotax software for Wisconsin needs to fixed to address this issue.

[DMarkM1]

Please clarify what you are seeing as a software issue.  Specifically on the "Medical Ins Wkst" in the "Worksheet 2 -Others" section, what are the figures on lines 2-9 showing that result in zero transfering to your WI form SB? 

[jmrums]

Medicare insurance premiums entered wtih Social Security 1099 do not get carried over to Wisconsin Medical Insurance Worksheet 1or 2.  They do show on the federal Medical Expense worksheet.

In past years, the single entry on SS 1099 would bring the medicare premiums to the state  Schedule SB. At the present, i have to make a separate entry in Wisconsin return for the medicare premiums. 

[DMarkM1]

You are correct the Medicare premiums paid with Social Security benefits does not automatically transfer from the 1099-SSA entries.  However, in the step-by-step in the WI state interview on the page "Medical Care Insurance" the instructions there specifically mention, "Include any amount deducted from your monthly Social Security benefit for Medicare ...(Parts B and D)." 

[jmrums]

Sounds like that is a change from previous years. As a loyal Turbo Tax user for over 10 years, I don't make a practice of wasting my time going through the interview process. It would have been nice to be alerted for changes that were made.

Seems like this is taking a step backwards!

[winemakertjb]

I have exactly the same problem as Markklos.  My expectation is that when I enter all of my medical expenses  through the interview process, including after-tax premiums paid, the Wisconsin return and schedule SB would be automatically populated.  It does not.  I had to override the forms to make it work.  This has been discussed in prior year Turbotax forums and remains a current issue. I now need to amend prior year tax returns.

[frizby]

I have a related issue with pre-tax amounts categorized as DD are forwarded automatically to the state form and subtracted from my income incorrectly.  This is an error.  You cannot deduct pre-tax medical premiums.  

I thought I had a refund and now have to pay with interest.  Fix this.