Are there any MO preparers?

[Marie]

Would like to discuss the MO-A to see if you think software is correct or if you are correcting all health ins prem.

[OldJack]

I am a MO tax preparer. Since MO starts out with the Fed AGI there has never been a deduction for health insurance in MO. Starting with 2007 tax returns we now have the deduction/subtraction from the Fed 1040 Sch-A.

Quote from MO website under whats new:

>>New Health Insurance Premium Subtraction

Individuals may subtract from their federal adjusted gross income, qualified health insurance premiums, to the extent their premiums paid were not reimbursed by their employer, or excluded from their federal taxable income.<<

[Marie]

I am a MO tax preparer. Since MO starts out with the Fed AGI there has never been a deduction for health insurance in MO. Starting with 2007 tax returns we now have the deduction/subtraction from the Fed 1040 Sch-A.

Quote from MO website under whats new:

>>New Health Insurance Premium Subtraction

Individuals may subtract from their federal adjusted gross income, qualified health insurance premiums, to the extent their premiums paid were not reimbursed by their employer, or excluded from their federal taxable income.<<

I know about the deduction, but when you put the figures on fed Sch A , health ins and long term ins in the applicable lines, the LT goes onto the MO worksheet along with the health ins, which if you don't take out, gets deducted twice. Once with the health ins deduction on line 4 and then again on line 17. The software automaticallly puts LT on that line, too. I've taken out long term so it doesn't add to the subtraction on line 4. Is that correct?