Family Attribution Rules

rollerbe · ‎July 19, 2021

I have seen this question on the forum but no helpful answers yet. My parents own the company I work for and I am considered a "relative of a shareholder." I do NOT own stock in the company but I'm related to a primary shareholder. As such my health care premiums are listed on my W-2 but I should have an option to designate that the amount be subtracted from my W-2 under IRS Sec 318(a)(1) family attribution rules. Right now the software just keeps asking my for a K-1 which does NOT apply to my situation. And I am NOT self-employed - I am a W-2 employee of the company. This is not an uncommon thing to occur with children working in family businesses so I would love to just understand if TurboTax can handle it with the personal software program. Anyone have that answer?

Mike9241 · ‎July 19, 2021

the only way I could come up with to make this work is to enter a k-1 for the S-Corp showing no income. then complete the SE health insurance section. I do not know if this would raise issues with the IRS.

your other choice is an override but this would prevent e-filing and could also raise issues with the IRS.

View solution in original post

tagteam · ‎July 19, 2021

I agree with @Mike9241; there appears to be no other way to input the deduction into TurboTax other than an override or creating a blank K-1 and then completing the SE healthcare worksheet.

rollerbe · ‎July 19, 2021

Thanks! I agree that looks like the only option at this point.

Family Attribution Rules

Deductions & credits

Deductions & credits

Deductions & credits