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Insurance not pre-taxed due to being related to the business owner

My husband and I both work for my father in-law. Due to this our taxes are not pre-taxed. This is based on our business accountant. In past years I have been able to use the override function. This year I am not. How can I enter this in schedule 1, line 16?

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4 Replies
ColeenD3
Expert Alumni

Insurance not pre-taxed due to being related to the business owner

Are you paid by 1099-NEC? You would enter your self-employed health insurance as an expense in the Schedule C section. It will be entered on Schedule 1, not the Schedule C.

 

Insurance not pre-taxed due to being related to the business owner

No, I am paid by a regular W-2.

ColeenD3
Expert Alumni

Insurance not pre-taxed due to being related to the business owner

W-2 employees enter their medical expenses on Schedule A Itemized Deductions. Only self-employed persons are able to take it as an adjustment to income.

Insurance not pre-taxed due to being related to the business owner

Our business accountant says that the tax law is different if you are related to the owner. Based on this he has said that we take ours as if we are owners, and than in previous years I use the override function. This is only a problem this year because the override function does not work.

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