Deductions & credits

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 This 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.

Note that if you meet the test for a "more than 2% shareholder" (including the spouse of a more than 2% shareholder), you should receive a W-2 from the S Corp that includes in box 1 wages your portion of health insurance premiums and that same amount in box 14 of the W-2.  The W-2 will not report box 3 or box 5 wages for the health insurance premiums, however, because this compensation is not subject to payroll taxes. Note that your S Corp deducts your health insurance paid as wages.  If the S Corp did not "cut the check" for the health insurance, it is supposed to reimburse you for the payments you made from your personal funds in order for you to qualify for the self-employed health insurance deduction.

To find the place to enter  or edit your K-1, click the "magnifying glass Search" icon on the top row, enter "k-1" in the search window and press return or enter, and then click on the "Jump to k-1" link to begin entry of the Schedule K-1 you “received” from your S corp.

 Here are the screens you look for to enter your self-employed health insurance amounts: