Differences in SSA-1099 and 1099-SA reporting between FreeTaxUSA and TurboTax
I'm helping my elderly in-laws file their 2024 taxes and noticed something weird comparing FreeTaxUSA with TurboTax. The Schedule A amounts are totally different between the two programs! The main issue is with Medical and Dental Expenses on Line 1. In TurboTax's Medical Worksheet, I can see they calculated the Total Medical and Dental expenses by taking the HSA distribution and subtracting it from the combined Medicare premiums (from both in-laws' SSA-1099 forms, box "Medicare premiums deducted from your benefits"). This gives the Total Medical and Dental expense amount. But FreeTaxUSA seems to handle the 1099-SA differently? I can't figure out if they're doing the same calculation or if something's missing. The 1099-SA entry screens look completely different between the two programs. Has anyone else noticed this discrepancy? I want to make sure we're getting the right deduction amount and not missing anything. The difference is about $2,400 which seems significant. Any tax pros familiar with both programs who can explain the correct way to handle SSA-1099 Medicare premiums and 1099-SA distributions on Schedule A?
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Javier Morales
The difference you're seeing is likely because TurboTax and FreeTaxUSA handle Medicare premiums from SSA-1099 forms differently in their workflows. Both should ultimately arrive at the same result if you enter everything correctly, but their approaches differ. For Medicare premiums shown on the SSA-1099 (Box 3), these are considered medical expenses that can be included on Schedule A. However, if you received distributions from an HSA (reported on Form 1099-SA) that were used for qualified medical expenses, you can't "double-dip" - meaning you can't count those same expenses both as tax-free HSA distributions AND as itemized deductions on Schedule A. TurboTax apparently automates this calculation by subtracting the HSA distribution from the Medicare premiums. FreeTaxUSA might require you to manually adjust this - you need to check if there's a section where you indicate which medical expenses were paid with HSA funds.
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Natasha Petrov
•Thanks for explaining this! So basically I need to make sure I'm not counting the same medical expenses twice? If my parents used their HSA to pay for Medicare premiums, I shouldn't also claim those premiums on Schedule A, right? Is there a specific place in FreeTaxUSA where I need to indicate this?
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Javier Morales
•Yes, that's exactly right - you don't want to count the same expenses twice. If your in-laws used their HSA to pay for Medicare premiums, those specific premiums shouldn't also be claimed on Schedule A. In FreeTaxUSA, you should look in the medical expenses section for an option to exclude expenses paid with tax-free distributions. It might be labeled something like "medical expenses reimbursed" or "expenses paid with HSA funds." Make sure you're only counting each expense once between the two forms.
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Connor O'Brien
Just wanted to share my experience with this exact issue! I was pulling my hair out trying to reconcile the differences between software programs for my parents' returns. I finally discovered https://taxr.ai which literally saved me hours of frustration. I uploaded screenshots of both software outputs and it immediately pinpointed where the discrepancies were coming from in how each program was handling the SSA-1099 Medicare premiums and 1099-SA distributions. The tool showed me exactly where FreeTaxUSA was missing the automatic offset that TurboTax was applying. Turns out I needed to manually adjust the medical expenses in FreeTaxUSA to account for the HSA-covered portion. After making that one change, both programs matched perfectly!
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Amina Diallo
•That sounds interesting. Does this taxr thing actually work with all tax forms? I'm dealing with a similar issue but it involves 1099-R distributions and IRA contributions. Would it help with that too?
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GamerGirl99
•I'm a bit skeptical...do you have to upload your actual tax documents with personal info to this website? Sounds risky from a security standpoint. How does it handle sensitive data?
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Connor O'Brien
•It works with pretty much all tax forms - I've used it with W-2s, various 1099 forms, Schedule C, and others. The system recognizes the forms and can compare how different software handles the same information. It should definitely help with 1099-R and IRA contribution issues too. Regarding security concerns, you don't have to upload your actual tax forms with personal info. I just uploaded screenshots of the specific sections I was comparing between the software programs, with personal details blurred out. The system is smart enough to understand the form structure and calculations even with partial information. They also have a pretty strict privacy policy and use encryption for any data you do share.
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Amina Diallo
Following up on my question about taxr.ai - I decided to give it a try with my situation comparing 1099-R and IRA contribution handling between different tax programs. Wow, it actually worked incredibly well! I had this weird discrepancy where one program was calculating my taxable amount differently than another. Uploaded screenshots from both programs and the tool immediately spotted that one program was incorrectly applying the pro-rata rule for my IRA distributions. It saved me from potentially filing incorrectly and facing an audit. The comparison feature also showed me I was missing a potential deduction related to my SSA-1099 that neither program had prompted me about. Definitely worth checking out if you're comparing tax programs or trying to understand why your numbers don't match up.
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Hiroshi Nakamura
If you're having trouble reaching the IRS to ask about how the SSA-1099 and 1099-SA should be properly reported, try https://claimyr.com - they helped me actually get through to a real IRS agent after I spent DAYS trying on my own. You can see how it works at https://youtu.be/_kiP6q8DX5c. I had a similar issue with medical expense reporting last year and needed clarification from the IRS. After multiple failed attempts to reach someone (either constant busy signals or disconnects after waiting for hours), I was about to give up. Then I tried Claimyr and got connected to an IRS agent within 45 minutes who walked me through exactly how to properly report Medicare premiums from SSA-1099 forms when also having HSA distributions.
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Isabella Costa
•How does this actually work? Do they just call the IRS for you or what? I'm confused about how any service could get through when the lines are constantly jammed.
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Malik Jenkins
•Yeah right. No way this works. I've been trying to get through to the IRS for weeks about a similar issue. If the phone lines are busy, they're busy for everyone. Sounds like a scam to me.
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Hiroshi Nakamura
•They don't call the IRS for you - it's a system that navigates the IRS phone tree and waits on hold for you. When they reach a human agent, you get a call to connect with that agent. It's completely legitimate. The service works because they have developed a system that can efficiently navigate the IRS phone menus and stay on hold so you don't have to. They've figured out the best times to call and how to get through the system more effectively than individuals can. When they get through to a real person, they immediately connect you to that agent. I was skeptical too until I tried it.
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Malik Jenkins
Okay I need to eat my words about Claimyr. After my skeptical comment I decided to try it since I was desperate. I was shocked when I actually got a call back connecting me to an IRS agent who was already briefed on my issue! The agent confirmed what others here have said - when reporting Medicare premiums from SSA-1099 forms, you need to make sure you're not double-counting expenses paid with HSA distributions. She explained that TurboTax automatically adjusts this in their calculations, but FreeTaxUSA requires manual adjustment in most cases. For anyone struggling with this specific issue: in FreeTaxUSA, after entering your SSA-1099 info, go to the medical expenses section and look for "adjustments to medical expenses" or "reimbursed medical expenses" to subtract any amounts paid with HSA funds. That should resolve the difference between the two programs.
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Freya Andersen
One thing nobody's mentioned yet is you should check if the difference between the programs might be related to the 7.5% AGI threshold for medical expenses. Remember, you can only deduct medical expenses that exceed 7.5% of your adjusted gross income. TurboTax and FreeTaxUSA might be calculating that threshold differently, or applying it at different stages of the process. Just something else to consider when comparing the two results!
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Eduardo Silva
•That's a really good point about the 7.5% threshold! Does that calculation happen before or after the HSA distributions are considered? I always get confused about the order of operations for these deductions.
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Freya Andersen
•The 7.5% AGI threshold applies to your total qualified medical expenses after you've already removed any expenses paid with tax-free distributions like HSAs. So the proper order is: 1) Add up all qualified medical expenses including Medicare premiums from SSA-1099, 2) Subtract any portion paid with HSA funds or otherwise reimbursed, 3) Calculate 7.5% of your AGI, 4) Subtract that 7.5% threshold amount from your adjusted medical expenses. What remains is your deductible medical expense amount for Schedule A.
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Leila Haddad
Has anyone compared how the two programs handle the Medicare Part B IRMAA surcharges? My parents had to pay extra for Medicare Part B because of their income level (Income-Related Monthly Adjustment Amount), and I noticed FreeTaxUSA and TaxAct treated these differently. Wondering if TurboTax has another approach.
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Emma Johnson
•In my experience, TurboTax correctly identifies the IRMAA surcharges as deductible medical expenses when you enter the SSA-1099 information. They show up separately in the medical expenses worksheet. FreeTaxUSA required me to manually add these as additional medical expenses - they weren't automatically pulled from the SSA-1099 form.
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