dmertz
Level 15

Deductions & credits

I'm not sure that this question has ever been asked on this forum.

 

It might be that this situation is not supported by TurboTax.  It appears that TurboTax only generates the self-employed health insurance deduction for an S-corp shareholder through the entry of a Schedule K-1 (Form 1120-S).  I thought it might work to enter a dummy K-1 identical to the one received by the family member through which you have ownership attribution but with no amounts entered in Part III.  You would then get the opportunity to indicate that you paid health insurance premiums and that the S-corp paid you wages.  However, doing this appears to result in an extraneous Schedule E entry that is associated with the dummy K-1, although with no dollar amounts on the dummy K-1, the taxable result on Schedule E is unaffected.

 

If the attribution is through your spouse and you file jointly, an alternative might be to associate the self-employed health insurance deduction with your spouse's Schedule K-1.  I'm not aware of anything on the filed tax return that actually identifies which spouse is associated with the self-employed health insurance deduction.