Get your taxes done using TurboTax
Note that under the IRS rules, an S Corp taxpayer is eligible for the self-employed health insurance deduction only if the S Corp either pays the policy directly, or reimburses the shareholder for premiums paid directly by the shareholder (for a policy in the shareholder’s name). In either case, the S Corp is required to include the health insurance premiums in the shareholder W-2 box 1 wages and report those health insurance premiums as wages on the Form 1120S. When reported correctly, the self-employed health insurance premiums are already deducted from the income being reported as income on the shareholder K-1.
S Corps that have not complied with the IRS rules to report “more than 2% shareholder health insurance premiums” as W-2 wages need to file corrected W-2 forms for these more than 2% shareholders. Also, the S-Corp should report these health insurance premiums for more than 2% shareholders as wages on Form 1120S and the shareholder K-1 as part of Section 199A wage reporting. If you have already filed Form 1120S for 2019, you'll need to file an amended return and use the Schedule K-1 forms from that amended Form 1120S. Note that only wages reported to the SSA within 60 days of the deadline are eligible to be counted as wages for QBI purposes.
That being said, as you enter your K-1 from the S corp into your individual TurboTax, you will encounter the "Other Situations" screen. On that screen, your check the "I personally paid health insurance..............." question. When you check that box, on the next screen you will get a box to enter your Medicare Wages (box 5 of your W-2) from your S Corporation. If you got your insurance from the Marketplace, don't enter the medical insurance premiums, they are already in TurboTax from your 1095-A entry. Otherwise, when you enter your W-2 box 5 wages in that box and the amount of health insurance reported on your W-2 in the next box, your self-employed health insurance deduction should calculate correctly.
Here are the screens you look for to enter your self-employed health insurance amounts:
For more information, see these IRS websites:
https://www.irs.gov/pub/irs-drop/td-reg-107892-18.pdf
https://www.irs.gov/pub/irs-drop/rp-19-11.pdf
