Apparently, my above question isn't very interesting, since there have been no comments or answers. But it should be. TurboTax is not adjusting the QBI that is input to Form 8995 (or 8995-A) for self-employed health insurance (SEHI) for 2% S-corp owners. IRS guidance (draft instructions) seem to require that SEHI be subtracted from QBI on these forms. Other tax prep companies are doing it that way, but TurboTax is not. The typical savings to a taxpayer with the TurboTax assumption might be ~ $600, based on a $12K SEHI deduction. Can TurboTax staff please comment on this? Do you have any inside info on your company's apparent mis-reading of the IRS guidance? My tax advisor (who also uses Intuit software) seems to agree with the TurboTax approach, but won't comment on the risk. I do agree that the TurboTax approach makes sense in one important way: the SEHI was ALREADY subtracted from the QBI that was reported on the K-1.
