Deductions & credits

If your Partnership Agreement has a provision for the partnership to pay your health insurance premiums, the Form 1065 and subsequent K-1s need to be amended to include the premium total as code M in box 13.

If there is a provision in the partnership agreement that you will pay your own health insurance premiums (like other unreimbursed expenses) then you need to mark that box on the "Describe the Partnership" screen after entering the K-1.  The IRS worksheets to calculate the SE Health Insurance Deduction create a circular reference when you have a PTC payback situation.  There is a workaround to correctly report your SE Health Insurance Deduction though in this case.  Based on your 1095-A entry, you paid $7,750 in premiums after PTC and have a PTC payback of $7,523.

Please follow these steps in TurboTax Home & Business to correct your SE Health Insurance Deduction:

1. Within your return, use the magnifying glass icon to search 1095-A and click the Jump to link that shows at the top of the results
2. Click Continue and Edit on your 1095-A and ensure you have it associated with the correct K-1
3. Use the magnifying glass icon to search K-1
4.  Click Update for Partnerships and Edit for the K-1 you linked the 1095-A to
5. Answer the questions and Continue through the interview until you get to the Describe the Partnership screen
6. Check the box for I personally paid health insurance and/or long term care insurance premiums for myself and my family and Continue
7. Since you checked the above box, you’ll see the Unreimbursed Partnership Expenses screen. Select Yes
8. Answer the questions (according to any unreimbursed expense provisions in your partnership agreement) until you get to the Any Self-Employed Insurance Costs? screen
9. Enter $4828 for Health Insurance Premiums You Paid Other Than Amount in Box 13M
   • This is the difference between the premiums you paid during the year + the PTC payback less the $10,445 already reported as SE Health Insurance Deduction
10. You can switch to forms mode and see line 17 on Schedule 1 now reflects the total amount you are qualified to claim

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