Business & farm
The way this works is the company deducts the health insurance on the S corporation tax return as wage income to the qualifying shareholder, then the shareholder adds the wage income on his or her personal tax return, then deducts it as self-employed health insurance to the extent it is allowed for the individual taxpayer. In that way, the insurance deduction comes from the reduced income reported to the shareholder on their K-1 form.
Since you don't have a K-1 form evidently, I don't see how you can take personal advantage of the deduction on your personal tax return, since you report no income from the S corporation on which the deduction would be taken. You would be entering wage income that includes the health insurance premiums and then deducting that amount back out, resulting in no net tax benefit.
If you determine a legal way of qualifying for the health insurance deduction, you would have to enter a K-1 schedule from the company and on the screen that says Other Situations, choose the I personally paid health insurance premiums for myself/family and this S corporation paid me wages:
On the next screen enter your Medicare wages and health insurance payments:
The deduction will appear on line 17 of schedule 1 of your form 1040.
To view your form 1040 and schedule 1 to 3:
- Choose Tax Tools from your left menu bar in TurboTax Online
- Choose Tools
- Choose View Tax Summary
- See the Preview my 1040 option in the left menu bar and click on it
- Choose the Back option in the left menu bar when you are done
