Get your taxes done using TurboTax

No, do not delete anything.  If the Schedule C has a loss, you can't enter a health insurance deduction for that business.  For the K-1, the S Corporation can either purchase the policy in your name or reimburse you for the premiums you paid.  

You may be able to use the Self-Employed Health Insurance (SEHI) deduction if you're at least a 2% shareholder in an S Corporation.  To claim this deduction, the health insurance premiums must be paid or reimbursed by the S corporation and reported as taxable compensation in box 1 of your W-2.

To claim the SEHI deduction in TurboTax, you'll need the K-1 that the S Corporation sent you. Here's how to enter it and claim the deduction:

1. With your return open in TurboTax, search for K-1 and select the Jump to link.
2. Select Yes to Did you receive any Schedules K-1 or Q?
3. Select Start or Update next to S corporations (Form 1120S) and follow the screens, filling out info as you go.
4. On the Check boxes that have an amount or are checked on the form screen, select Box 17 Info and any other boxes that contain info on your K-1.
5. Select Continue.
6. On the Enter Box 17 Info screen, select AD - Other Information in the Enter Code field.
7. Enter the amount and select Continue.
8. Select Continue to skip the first Enter Code AD Detail screen.
9. On the second Enter Code AD Detail screen, enter Shareholder's Health Insurance Premiums in the Description field.
10. Enter the amount and select Continue.
11. Select Continue to skip the How to Enter Code AD Information screen.
12. On the Other Situations screen, select I personally paid health insurance... and then Continue.
13. On the Self-Employed Health Insurance screen, fill in the W-2 box 5 amount and the amount of health insurance premiums you paid (this may be on your W-2 in box 14).
    • If you purchased insurance through Healthcare.gov or your state marketplace, leave the second box blank.
14. Select Continue.
15. On the Long-Term Care Insurance screen, enter any long-term care premiums and select Continue.
16. Select Yes or No to Does your K-1 have a code V in Box 17?
    • If you selected Yes, follow the screens until you reach the S Corporation K-1 Summary.