Health Insurance Costs reimbursed by S-Corp not being deducted on shareholder taxes
Need help to understand how Turbotax interprets Notice 2008-1 (Special Rules for Health Insurance Costs of 2-Percent Shareholder-Employees)
My scenario follows Example4 in Notice 2008-1:
- Obtained an accident and health insurance policy. In this case, my spouse's COBRA
- I personally made the premium payments and provided proof of premium payment to the S corp
- S corp reimbursed for the premium payments and included in Box1 of W-2
- W2 Box 14 -S-Corp Health Insurance – $XX,XXX
- K-1 Box 17 - Code AD -$XX,XXX
Issue - On my personal taxes using TurboTax Premier 2025, it is not adjusting my AGI. I have tried to resolve in a few ways:
a) ensure W2 box 14 entered correctly (also verified Box1 of W-2 contains the additional premium $)
b) In K1 - TurboTax doesn't offer Code AD in the dropdown for box 17. It does have a checkbox "I personally paid health insurance and/or long-term care insurance premiums for myself and my family and the S-corporation paid me wages" - I checked the box (I have tried it both ways, doesn't seem to influence AGI)
c) in K1 - "Entered $XX,XXX in the "Health Insurance Premiums you paid personally". It also doesn't adjust the AGI. (Instead, it applies to a deduction if over 7.5%)
Question - What needs to be filled in turbotax to have it recognize this scenario and reduce my AGI?
