How to Amend Returns for Self-Employed Health Deductions

[DX-hound]

I retired in 2012 and have been working part time since then as an independent contractor (engineering consultant).  I just discovered I could have deducted the full amount of my Medicare Premiums and Qualified Long Term Care Insurance since I'm self-employed (yes, made more income than the total missed deductions).

Never had to amend a return before (Federal and State).  Unfortunately, I can only go back three years.  My questions.  Would appreciate answers for each rather than a generalized answer.

1.  I assume I use my TurboTax 2021 software to amend the 2021 returns, the 2022 software for 2022 & the 2023 software for 2023.    All three returns used TurboTax Premium. 

2.  Where do I enter these deductions in TurboTax under my self-employed status?   I'm guessing the answer may not be the same for the years in question.  For one thing, I don't recall seeing the IRS Form 7206 (Self-Employed Health Insurance Deduction) before the 2023 tax year.

3. Can I e-file the three Federal amended returns with TurboTax?  I believe TurboTax can't e-file an amended return for my state (Maryland) which is unfortunate.

4.  Do I file all the amended returns in quick succession or do I have to wait for 2021 to be processed first before filing 2022, etc?

3.  Why did TurboTax not find these deductions for me in the first place?  I thought there was a guarantee for 100% accuracy.  Flaw in the software's interview process or Forms?

Thanks for the help and have a great holiday season.

[VolvoGirl]

#1  Yes you need to use each year's program to amend that year.  I assume you used Turbo Tax Premier (not Premium).   I use the Home & Business program so I'm not sure where you enter it.  But you can search for schedule C.   It should be in the same area you entered your self employment income and expenses.  There should be a spot for Retirement and Health Ins.  

#2  Do you pay the Medicare from Social Security checks and get a SSA-1099?  Go to the SSA-1099 entry and delete it from the SSA-1099 entry screen.   Medicare plan B payments are qualified as Self-employed medical insurance premiums and should be entered under Business instead of in the SSA-1099 Social Security Benefits section.

Try this for where to enter it.  https://ttlc.intuit.com/community/entering-importing/help/where-do-i-enter-my-health-insurance-premi...

#3&4  Sorry no you can not efile prior year amended returns with Turbo Tax.  Mail each one in a separate envelope.  You don't have to wait for the first one to be processed.

[VolvoGirl]

Oh I forgot to tell you how to amend.     To amend the Desktop program. Start by opening your return as usual. Go up to File-Open.  Before you start amending be sure to save your original return and give it another name, go up to FILE-SAVE AS.  Save it as both the .tax2023 file and pdf file if you haven't already saved the pdf.  

How to amend a prior year Desktop return,
https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-return/amend-change-correct-return-a...

If you don't see a button for Need to Amend a Filed Return? on your home screen then you can get to it here. Go to:
Federal Taxes -or- Personal (for H&B)
Other Tax Situations
last section, Other Tax Forms
Amend A Return - Click the Start or Update button

[DX-hound]

Thanks for the fast reply.

No, I don't receive a SSA-1099.  I'm a retired federal employee under the old CSRS retirement system.  Not that well known anymore but under that retirement plan we don't get Social Security.    And if I did apply for SS based on private sector income for 10 or more quarters, most of that SS payment is subtracted from my retirement check. 

Too bad I can't at least e-file the amended Federal returns.  Looks like my printer will get a workout.

[DX-hound]

Sorry, I missed asking one important question....

Thanks for your clear guidance.  I just finished the amended returns (State and Federal) for 2021, printed them and sent them in.

Now it's time to work on the 2022 amended returns.  My question....do I use the ORIGINAL 2022 return tax file as the starting point or do I use the just-completed 2021 AMENDED return tax file as the starting point for the 2022 amendments?      I'm guessing it's the ORIGINAL 2022 return, otherwise I'd be in an endless loop if the IRS came back and wanted changes in the 2021 amendment I already sent in.  

Is there any value in waiting for the IRS to process the 2021 amendment BEFORE sending in the 2022 amendment? And ditto for the 2023 amendment?

Thanks

[VolvoGirl]

Right, use the original 2022 as the starting point.  No you don't have to wait for the IRS to process your 2021 amended return.