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gdoremus2
New Member

Will TurboTax help me dispute the tax liability bill I just received?

2016 return: KY dept. of revenue disallowed deductions for health insurance premiums claimed on schedule M. They just sent me a tax liability bill for $314. Will TurboTax help me dispute that bill?

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DanielV01
Expert Alumni

Will TurboTax help me dispute the tax liability bill I just received?

It depends.  At the very least, if the return was filed with TurboTax, you may receive Audit Support, which will provide you assistance on how you can respond to KY Department of Revenue.  If you upgraded to Audit Defense, you will receive even more assistance.  This FAQ provides more information:  https://ttlc.intuit.com/replies/4204836

I can give you an idea of what KY is looking for.  To claim insurance premiums, you must have paid them out of pocket.  For instance, if you purchased Obamacare insurance, that would qualify.  However, insurance that is paid for through a payroll deduction cannot be claimed on Schedule M.  Those premiums have been paid for with pre-tax dollars (already have been deducted from taxable income).  Thus, if your insurance premiums are pre-tax, you are not allowed a second deduction.  

But if they are not pre-tax payments, gather together the proof that you have purchased the insurance with after-tax dollars.  If you have proof, you will substantiate your claim and will not have a tax liability.

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**Mark the post that answers your question by clicking on "Mark as Best Answer"

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1 Reply
DanielV01
Expert Alumni

Will TurboTax help me dispute the tax liability bill I just received?

It depends.  At the very least, if the return was filed with TurboTax, you may receive Audit Support, which will provide you assistance on how you can respond to KY Department of Revenue.  If you upgraded to Audit Defense, you will receive even more assistance.  This FAQ provides more information:  https://ttlc.intuit.com/replies/4204836

I can give you an idea of what KY is looking for.  To claim insurance premiums, you must have paid them out of pocket.  For instance, if you purchased Obamacare insurance, that would qualify.  However, insurance that is paid for through a payroll deduction cannot be claimed on Schedule M.  Those premiums have been paid for with pre-tax dollars (already have been deducted from taxable income).  Thus, if your insurance premiums are pre-tax, you are not allowed a second deduction.  

But if they are not pre-tax payments, gather together the proof that you have purchased the insurance with after-tax dollars.  If you have proof, you will substantiate your claim and will not have a tax liability.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
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