Health Insurance Premium Deduction and Family Attribution

[leighanndodd]

I am considered a 2% shareholder of an S-Corp due to family attribution rules. I do not receive a K-1. The premiums were added to my W2 as wages. How to I deduct these premiums without a K-!?

[Critter-3]

If you are an S-Corp shareholder you will get a K-1 in addition to the W-2 form.  The corp return must be completed first and they are due 3/15/21.  

To enter a K-1 go to 
Federal Taxes Tab ( Personal in the H&B versions )
Wages and Income
Choose Explore on my own or I'll choose what to work on  (if it comes up)
Then scroll way down to Business Items
 S-corps, Partnerships, and Trusts.  Schedules K-1, Q - Click the Start or Update button 

Be sure to pick the right kind of K-1. There are 3 kinds, 1041, 1065 & 1120S

[rollerbe]

I am having the exact same problem and can't seem to get an answer. My parents own the company I work for and I am considered a "relative of a shareholder." As such my health care premiums are listed on my W-2 but I should have an option to designate that the amount be subtracted from my W-2 under IRS Sec 318(a)(1) family attribution rules. Right now the software just keeps asking my for a K-1 which does NOT apply to my situation. And I am NOT self-employed - I am an employee of the company. This is not an uncommon thing to occur with children working in family businesses so I would love to just understand if TurboTax can handle it with the personal software program. Anyone have that answer?

[Rick19744]

While this may not seem to be uncommon, I don't think that TT handles this unless the individual also receives a K-1 and it gets handled in the K-1 section; there is a specific question related to this.

I have two recommendations:

1. Depending on which version of TT you are using, there is most likely a customer support number.  I would call that number and speak with someone to see how this is handled by TT if at all under your circumstances.
2. You may need to override Schedule 1 line 16.  This would require that you are using a TT version other than online.  This would also preclude you from efiling with TT.

Don't be surprised if you receive a notice on this matter.  Just respond with the facts that you presented here.  Also download a copy of CCA 201912001 and keep it with your documents.  This will support your position.

[AmeliesUncle]

I recommend entering a K-1 with $0 of income on it (you can borrow the K-1 of your relative to get the name and EIN of the company).

Then the program will allow the deduction (be sure the check the health insurance box in the K-1 section and answer the followup questions, including Box 5 of your W-2).