I own an S corp and reimbursed myself for health insurance premiums. It added the total to Wages. Do I enter total Box 1 and HI prem box 14 or 12 dd of W2 when filing W3?

[bezdecor]

own an S corp and reimbursed myself for health insurance premiums. It added the total to Wages, so my wages went up by health insurance premium. I am now filing W3s so I can issue myself a W2. Do I enter total wages plus HI premiums in Box 1, then just wages without premiums in box 3 and 5? What about box 14 or 12 dd? Do I have to enter HI premiums there?

[DanielV01 · Accepted solution]

The way you suggest is correct reporting.  When you include the health insurance as part of your wages, the amount in box 1 is going to include the premium amount, which is also reported in Box 12 with a code of DD (reporting there does not raise your wages any additional amount).  Also, reporting in Box 14 shows that the amount was a post-tax amount (because it is included in your wages), but will not double-add the amount into your tax return.  (Box 14 is informational).

However, the insurance premiums are not included for Social Security and Medicare tax.  So you will not need to include these amounts in boxes 3 and 5.

Then, on your personal return, make sure you claim the self-employed health insurance premium deduction to have these insurance amounts removed from your income.  Please see this FAQ for additional information:

https://ttlc.intuit.com/replies/5564269

[bezdecor]

Thank you. I am not clear on wherever to report it in section 12dd or 14? It was paid by S corp credit card but purchased in my name personally and not through S corp estblished health plan

[ACE55]

Hello,

I am using TurboTax Business.  I paid Health Insurance of $13745 and reported this on my W2.  My CPA prepared tax return from last year shows this on my K-1 Line 17 AC.  Where do I enter this in TurboTax Business so that it shows up this way?

Thanks!, ACE55