S-corp self employed health insurance deduction

[Mark-s-corp]

As long as your S-corp paid or reimbursed you for your health insurance premiums, included that amount as part of the W-2 line 1 wages which is excluded from line 3 and 5 wages, AND your S-corp paid you line 5 wages (real wages in addition to your health insurance premiums) at least as much as the premiums, then you can take the standard deduction AND you get a separate deduction for the self employed health insurance.   The self employed health insurance deduction hits your 1040 at line 8a as an adjustment to income from Schedule 1 line 22.    Note that your personal W-2 went up by the same amount as the adjustment reduces it by (as long as you had sufficient medicare (line 5) wages from the S-corp to get the full Sch 1, line 22 deduction.

[alex14]

Does not work as described. Searching for K-1 or jump to K-1 brings up a ton of unrelated information but no actual option to jump to any k-1. Turbo Tax help and the community is largely useless which is a shame since this should be the real value of the program. This same issue cost me money on last year's return and forced me to file an amended return...all and all very dissatisfied

[MaryK4]

Federa; Taxes-- Wages & Income -- S-corps, Partnerships, and Trusts-- Schedule K-1

@alex14

[Doggone12]

Thank you for the info but the premiums were paid by the LLC and we bought it through the Marketplace and received a form 1095A.

Instructions state NOT to enter the information there.

[Doggone12]

I entered my medicare wages an the health insurance premium amounts and, looking at the K-1 S Corp Health LTC Worksheet in the "Step-by-Step" mode, the HIP figure is supposed to transfer over to Schedule 1, instead medicare wages amount is transferred!

[AmeliesUncle]

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@Doggone12 wrote:

I entered my medicare wages an the health insurance premium amounts 

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Why would you do that?  In that section, enter zero for the cost of insurance (because it tells you not to enter Marketplace insurance), but then one of the followup questions should ask you about Box 5 of the W-2.

On the screen immediately after entering (or editing) your 1095-A, check the box about self employment.  That  will trigger the amount to be entered as the Self Employed Health Insurance deduction.

[Doggone12]

Sorry, I was unclear but my last post I was detailed in what I did.

I can't check off  the box for self employment income because the income is from LLC.

[AmeliesUncle]

For purposes of the Self Employed Health Insurance deduction (that is what you are trying to get), being part of a Partnership or S-corporation is considered self-employed.  So that is the box that you need to check.

[Mark-s-corp]

Actually the amount of HIP that are deductible is limited to the smaller of the Medicare wages or the HIP, so if your HIP were higher than your Medicare wages, then only the smaller amount will get transferred over.   The IRS guidance doesn't point out this nuance and even implies the HIP are fully deductible if your HIP are included as part of your box 1 wages, but the worksheet only will pass through the smaller of your HIP or line 5 (Medicare) wages.