Question

Wisconsin page 4 Itemized Deductions worksheet line 1 MCI included in line 1 federal Schedule A. Amount brought forward does not include the premiums from 1095-A, why?

Forum|Forum|3 years ago
February 16, 2023
1 reply
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I do not understand why Wisconsin doesn't include ACA from 1095-A when entering the amount in the Wisconsin Form 1 Itemized deductions, Worksheet line 1 MCI included in line1 Schedule A.

TurboTax Online

J

JohnW152

I believe you're saying that you're not seeing premiums paid with your advance federal premium tax credit included in your subtraction for amounts you've paid for medical care insurance.

If so, that's correct.

According to Does the federal premium tax credit affect the Wisconsin subtraction for medical care insurance? in Wisconsin's Individual Income Tax Medical Care Insurance Subtraction:

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 that 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 may increase your subtraction for medical care insurance by the amount you were required to repay.

If this isn't what you were asking, please re-post.

R

RoscoPkAuthor

I am not asking about the premium credit. I understand how to account for it.

My question, it appears that for Wisconsin Form 1 page 4 Itemized Deductions Worksheet, the amount TurboTax calculates excludes the premiums paid out of pocket for Affordable Care Act (health care market place), why does it exclude these premiums?

I will use example amounts. On Schedule A Medical Expense Worksheet, Line 2a Premiums, I have Cobra premiums, 3,000, Affordable Care Act premiums per form 1095-A, 1600, and Medicare premiums, 2,000. I do have other expenses that in total are above the 7.5% threshold. Therefore, I have paid out of pocket a total of premiums of 6,600. This is included in my medical expenses for Schedule A.

For Wisconsin, the amount TurboTax uses for Form 1 page 4 Itemized Deductions Worksheet, Line 1 says: quote, "Amount of medical care insurance (MCI) included in line 1 of federal Schedule A (Form 1040)" is (using my example numbers) 5,000 (3,000 plus 2,000).

My question, why is the amount used by TurboTax for Wisconsin Itemized Deduction Worksheet excluded the Affordable Care Act premium amount of 1,600?

I do enter the total premiums paid out of pocket 6,600 in the Wisconsin Schedule SB line 6.

J

JulieS

Did you get a Premium Tax Credit on this return? You can find that on line 9 of Schedule 3.

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 that you were allowed on the federal return.

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