How to report Schedule K-1, line 13 Other Deductions, Code M? IRS states amounts paid for medical insurance may be reported on Schedule 1 (1040) line 29.

stampdisney · ‎June 1, 2019

I am using a Turbo Tax Premier version 2018.

I am retired and received a partnership K-1 which shows: Box 4 guaranteed payments ( I reported on Schedule E) and Box 13 M for other deductions.

Essentially this is the health insurance premium that I paid through partnership and therefore listed on K-1. This is unrelated to business as I am already retired.

IRS instruction on K-1 box 13 says amounts paid for medical insurance premium may be reported on Schedule 1 line 29 if not itemized as a deduction. I am using standard deduction for 2018.

I followed instructions but this amount on medical insurance premium that I paid through partnership is still showing as an itemized deduction and not on Schedule 1 Line 29 as an adjustment to income.

Is this because I am using Turbo tax premier?

bonadiesdanielle · ‎June 1, 2019

Hi! I am having the same problem as stampdisney. I do have net earnings from self-employment reported with code A in box 14 of the K-1. However, the health insurance premium still isn't showing up on Schedule 1, line 29. Any suggestions for this situation? Many thanks!

dmertz · ‎June 1, 2019

The sum of Schedule 1 lines 27, 28 and 29 is not permitted to exceed net profit from self-employment. Make sure that the Self-Employed Health and Long Term Care Insurance Deduction Worksheet has the correct amount on line B.

dmertz · ‎June 1, 2019

For the box 13 code M amount on the Schedule K-1 (Form 1065) to appear on Schedule 1 line 29, you must have net earnings from self-employment reported with code A in box 14 of the K-1. Otherwise, you can only take a Schedule A medical expense deduction for the health-insurance premiums paid.

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stampdisney · ‎June 1, 2019

Hey thank you for the quick answer, this is super helpful! Turbo tax community rocks!

nycpa76 · ‎May 9, 2021

Do you show partnership medical payments both as a guaranteed payment, and a Line13M deduction?

ToddL99 · ‎May 9, 2021

Partnership medical payments are reported as a guaranteed payment.

As @dmertz stated so clearly above, they can also be reported on line 13M if you have net earnings from self-employment reported with code A in box 14 of the K-1.

From See IRS Publication 541 Partnerships: Premiums for health insurance paid by a partnership on behalf of a partner, for services as a partner, are treated as guaranteed payments. The partnership can deduct the payments as a business expense, and the partner must include them in gross income. However, if the partnership accounts for insurance paid for a partner as a reduction in distributions to the partner, the partnership cannot deduct the premiums.

How to report Schedule K-1, line 13 Other Deductions, Code M? IRS states amounts paid for medical insurance may be reported on Schedule 1 (1040) line 29.

Deductions & credits

Deductions & credits

Deductions & credits

Deductions & credits

Deductions & credits

Deductions & credits