Hi,
I am a partner at a large partnership. I get a K-1 from them. Starting this year, they pay for my health insurance but counts it as imputed income. Basically, it increased the guaranteed income and self-employment income in boxes 4a and 14a on my K1.
As far as I can see, Turbotax was able to deduct most of the increased taxes from this imputed income on Schedule 1 as self-employed health insurance coverage. However, there is a small portion (~3%) of this imputed income that is added to my taxes, compared to last year when I didn't get health insurance from them (my ordinary income did not change from last year, so I can clearly see where the difference was). I assume this is from the increase in self-employment income and the associated self-employment tax.
Does this sound right? I am happy that most of the tax on the imputed income was deducted since it was health insurance; but it appears I am still responsible for the self-employment tax portion of it? Or is there a way to deduct that portion too?
Thank you!
