Amending Your 2009 State Return to Correct Medical Deduction

Some taxpayers who reported Form 1099-R retirement income on their 2009 federal and state tax returns will need to amend their state returns to ensure their medical insurance premiums are reported correctly.

TurboTax automatically transfers the premium amount from the 1099-R form, entered in the Wages & Income section, to medical expenses in the Credits & Deductions section on the federal return. Taxpayers should not enter this amount again in the medical deduction section of Deductions and Credits.

Taxpayers who inadvertently entered the premium amount twice -- and whose medical expenses were not high enough to generate a federal tax deduction -- could nevertheless have overstated their medical deductions in certain states:

• Alabama
• Arkansas
• Arizona
• California
• Delaware
• Hawaii
• Iowa
• Kentucky
• Mississippi
• Montana
• New Jersey
• New Mexico
• Ohio
• Oregon
• Rhode Island
• Wisconsin

How can you tell if you need to amend?

Find your state returns for the years 2009 and then follow these instructions.

Then follow the steps below to learn if you entered a duplicate medical deduction on your federal return.

Note: If you used TurboTax Online to prepare your 2009 return, you won't be able to follow the instructions below. Please contact TurboTax at 1-800-624-2088  (Monday through Friday, 8 a.m. to 5 p.m. Pacific time).

Open your tax return in the TurboTax software.

1. Click the Federal Taxes tab, and then click Wages & Income (or Income) right below the tab.
   • Home & Business version: Click the Personal tab, and then click Personal Income right below the tab.
2. On the Your Income or Your Personal Income screen, scroll down to the Retirement Plans and Social Security section.
3. Click the Update button to the right of IRA, 401(k), Pension Plans (1099-R) topic. If this topic displays a Start button instead, STOP. You are not affected by this issue and do not need to take further action.
4. On the Your 1099-R Summary or Form 1099-R Summary screen, click Edit next to the United States Railroad item.
   • If you do not see this item, STOP. You are not affected by this issue and do not need to take further action.
   • Proceed until you reach the Enter Information screen. Write down the amount, if any, from Box 12 - Medicare Premium Total.
5. Next, you will look for any medical premium deductions you may have entered as medical expenses.
   • Note: If you have not written down any Medicare or medical insurance premium amounts from Step 5, STOP. You are not affected by this issue and do not need to take further action.
6. Click Deductions & Credits near the top of your screen, beneath the row of tabs, and then click Explore on My Own.
7. On the Your Deductions and Credits screen, scroll down to the Medical section.
8. Click the Update or Revisit button to the right of the Medical Expenses topic.
   • If this topic displays a Start button instead, STOP. You are not affected by this issue and do not need to take further action.
9. Answer Yes, and then click Continue until you arrive at the Enter Insurance Premiums screen.
10. Look at the amount you entered in the Medical Insurance Premiums field.
    • If you left this field blank, STOP. You are not affected by this issue and do not need to take further action.
    • If you entered the same amount (or the sum of amounts) you wrote down in Step 5, you are affected by this issue and will need to amend your return.
    • If you do not have medical insurance (other than Medicare or the insurance from your pension), an amount in the Medical Insurance Premiums field is a duplicate entry already reported on the RRB-1099-R form. You are affected by this issue and will need to amend your return.
    • If you have medical insurance (in addition to Medicare or the insurance from your pension), multiply your monthly insurance premium by 12 and subtract the result from the amount in the Medical Insurance Premiums field. If that amount is the same amount you wrote down in Step 5, you are affected by this issue and will need to amend your return.
11.  Please follow the steps below to amend your state return.

Please see Amend your state return to correct for medical deduction duplication and follow the instructions described there.