Why doesn't Turbo Tax give my Wisconsin return a credit for medical insurance premiums on Form 1, line 11?

[BillM223]

I can't see your return, but it is likely that your medical insurance premiums are not taken as a subtraction on Form 1 because they are pre-tax at the federal level (which carries over to Wisconsin).

Wisconsin says, 

"The following amounts may not be included in the subtraction for medical care insurance:

• Insurance premiums paid by an employer, including amounts paid by you through payroll deductions, unless the premiums are included as wages in box 1 of your Form W-2

• The amount of employer-provided medical insurance that is identified on your W-2 in Box 12 with Code DD

• Medical care insurance premiums that are deducted pre-tax"

See Form 1 Instructions for line 11.

Does that cover your situation?

[jfvlazny]

I am retired, pay for medicare and for supplemental insurance all of which I enter when preparing my fed 1040.  I noticed however that when I finished with my WI taxes and looked at form view, specifically the Schedule SB  form, that my medical insurance premiums had not been deducted.  I had to add them manually. Adding them increased my refund by $300.  I usually accept the Turbotax output for WI but will be checking from now on.  I work on taxes for a large accounting firm, different tax software, and we encourage the clients to provide all medical expenses but especially medical insurance premiums as they are deductible for WI.  Obviously there will be some differences for self employed but for regular tax payers they should see a deduction on their WI SB form.  I checked my 2020 return and my medical premiums weren't taken off costing me $X....I will check from now on.

[rmw1]

Continues in 2022 

[RobertB4444]

We can't duplicate your error.  Can you please share your file with us?  We will receive a sanitized version without any personal information that we can use to further investigate this issue.

Please follow these instructions to generate a six digit code and then share it here-

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. Click on Share my file with agent.
5. This will generate a message that a diagnostic copy will be created. Click on OK, the tax file gets sanitized and transmitted to us.
6. Please provide the Token Number that was generated onto a response.


TurboTax Desktop
1. Click into your return.
2. Click Online and select "Send Tax File to Agent".
3. This will generate a message that a diagnostic copy will be created. Click on OK, the tax file gets sanitized and transmitted to us.
4. Please provide the Token Number that was generated onto a response. 

@rmw1 

[ceckers]

This is also happening for me with my Wisconsin return for 2022.  There was a credit on my last year's return of $5,776 for item 6 on form 1, Medical Care Insurance.  However, even though I entered the amount we paid in 2022 there is no entry listed on my Wisconsin Form 1 for Medical care insurance.  This is really frustrating to see.  

[BrittanyS]

Does your federal return reflect a premium tax credit?  Per the Wisconsin DOR, "The subtraction for the amount paid for medical care insurance does not include any premium paid with the advance federal premium tax credit. When the federal premium tax credit is reconciled on the federal income tax return for the year, you must also reduce your Wisconsin subtraction for medical care insurance for that same year by the amount of any additional premium tax credit you were allowed on the federal return. If you were required to repay all or a portion of the advance federal premium tax credit, you might increase your subtraction for medical care insurance by the amount you were required to repay."

If your federal return shows a premium tax credit and you enter your medical care insurance, the difference may be reducing the credit to $0.  You can review the calculations in TurboTax Desktop by following these steps:

1. Click Forms on the Upper Right Panel
2. Scroll down to Wisconsin
3. Review Wisconsin Form

To view In TurboTax Online, follow these steps:

1. Click Tax Tool on the left-side panel
2. Click Tools
3. Click Tax Summary
4. Click WI Tax Summary

If the premium tax credit does not apply to your return and the calculations from the forms do not show the issue, please respond back to this thread.

@ceckers 

[ceckers]

So this is what I think the issue could be:  I purchased my Turbo Tax download from Amazon https://a.co/d/7iUogOz.  The download version that I bought indicates that the state tax program is included.  So, I do see my Wis.  tax retund amount on my downloaded version.  However, if I do select Turbo Tax online, I will have to pay an additional $45 to add my Wisconsin tax.  Very misleading! My download version of the Wisconsin return states I will receive a refund of $600+, but when I do the calculation myself, I should receive an additional $300 on my return.  I would not have noticed this had I not compared my 2022 return with my 2021 return.  

Getting back to my tax issue, no, I do not have a premium tax credit on my federal return.  I suspect that if I pay the additional $45 to add my Wisconsin tax program, then I may see the medical insurance deduction.  However, nowhere on my downloaded version of this purchase does it state I will need to do that.  Again, I feel  this purchase was totally misleading and I plan to review it as such on my Amazon purchase.  

[CarissaM]

On the version you purchased from Amazon, did it include the state? Or was it just federal? @ceckers 

[ceckers]

As I said in my previous response, the version that I purchased from Amazon was for both the state and federal returns.  Here is the link to the product I purchased on Amazon:  https://a.co/d/7iUogOz

[AmyC]

You purchased the state return and downloaded it. There is a separate fee to efile your return, which would not change your refund. 

In the state program, did you go through to the Medical Care Insurance Question? Did you choose self-employed, employee, and enter amounts? Do you have a dollar amount next to the question?

Do you have the Premium Tax Credit on your federal return? Are you using the deductions itemizing on WI instead of as a subtraction? Medical premiums are usually a subtraction, as you state.

Form 1 Instructions page 16 states: 

EXCEPTIONS Even though Schedule 1 has entry lines for medical expenses, interest paid, and gifts to charity, not all of the amounts of these items that are deducted on federal Schedule A (Form 1040) can be used for the itemized deduction credit. The following describes the portion of these items that may not be used to compute the itemized deduction credit. • Amounts allocated to you on Schedule 5K-1 or 3K-1 by a tax-option (S) corporation or partnership if the entity elected to be taxed at the entity level. • Medical expenses – the amount of medical care insurance and long-term care insurance claimed as a subtraction on Schedule SB, lines 6 and 7. If this applies to you, complete the worksheet on the next page to figure the amount which you are allowed, if any, for purposes of the itemized deduction credit.

@ceckers 

[ceckers]

They are not pre-tax insurance premiums!  We are retired and pay all of our insurance premiums out of pocket.  

[ceckers]

In response to the last questions, I did enter all the medical cost information for my federal taxes, including the insurance costs.  However, we have to use the standard deduction, so there is no adjustment to federal for those costs.  However, Wisconsin does allow that credit via Schedule SB, item 6, which did not populate on my state return.   

I am not responding to any more Turbo Tax specialists replies.  You obviously don't want to fix the problem and just assume I have done something incorrectly.  I will file on my own using Wisconsin's free-file.

[ceckers]

Okay, one more time...I finally figured out the problem with our health insurance not populating to our  Wisconsin taxes.  Even though I entered this amount on my federal return under medical insurance, it does not populate on its own into the state return (at least this is the case for the download version.)  Under the Wisconsin tax section, there is a section that states "Here is the income that Wisconsin handles differently".  In the blue section, there is a place click to add in your medical insurance (even though I already had, it does not pull in to the state return.)  Wow...that was crazy.  I know it pulled in last year and I didn't have to enter it separately, but I used the online version, not the download.  I will be using online version next year.  Bye, bye to the download.  

[HopeS]

Yes, Wisconsin has its own rules on standard deductions and certain itemizations allowed. You earned a tax credit on medical expenses for example that you may or may not have qualified for on your Federal return.

Below is additional helpful information from the Wisconsin Department of Revenue:

Medical Care Insurance on the Itemized Deduction Credit

@ceckers