Thank you, this is helpful. I have followed your answer and also referred to this page I just came across: https://www.wegnercpas.com/s-corporation-health-insurance-reminder/
After reading their instructions for my situation (S corp benefits paid to 2% or greater shareholder-employee) I have filed a w-2c corrected w-2 with a correction to reduce the SS and Medicare box 3 and 5 amounts by the amount of the premium, and also noted in box 14 the amount of the insurance (y). Now I have to file Form 941-X due to overpayment of SS and medicare taxes for 2020.
In the Salaries and Wages paid of TurboTax Business 2020 I have entered in the box 3 / box 5 amounts (same number - essentially x minus y) so that when added together with the benefits, it agrees with the w-2 box 1 wages number. Seems like the correct workaround in the software to make sure nothing is double counted.
It seems like TurboTax Business does not even mention the separate numbers or the healthcare benefits number anywhere in the filings or calculation worksheets, and it just adds together benefits and salary for total compensation, so it doesn't seem to make a difference to TurboTax Business whether it's one number x or (x-y) as one number and y as the benefits number, added together. The only place it seems to matter is when I am filing my personal return, to take the SE health insurance deduction and when entering in my w-2 information.
