Self employed

The SEHI deduction will appear on line 17 of Schedule 1 and may not exceed your W-2, box 5 amount.

You may be able to use the Self-Employed Health Insurance (SEHI) deduction if you're at least a 2% shareholder in an S Corporation. To claim this deduction, the health insurance premiums must be paid or reimbursed by the S corporation and reported as taxable compensation in box 1 of your W-2.   These instructions can be found in this FAQ.  

To claim the SEHI deduction in TurboTax, you'll need the K-1 that the S Corporation sent you. Here's how to enter it and claim the deduction:

1. With your return open in TurboTax, search for K-1 and select the Jump to link.
2. Select Yes to Did you receive any Schedules K-1 or Q?
3. Select Start or Update next to S corporations (Form 1120S) and follow the screens, filling out info as you go.
4. On the Check boxes that have an amount or are checked on the form screen, select Box 17 Info and any other boxes that contain info on your K-1.
5. Select Continue.
6. On the Enter Box 17 Info screen, select AD - Other Information in the Enter Code field.
7. Enter the amount and select Continue.
8. Select Continue to skip the first Enter Code AD Detail screen.
9. On the second Enter Code AD Detail screen, enter Shareholder's Health Insurance Premiums in the Description field.
10. Enter the amount and select Continue.
11. Select Continue to skip the How to Enter Code AD Information screen.
12. On the Other Situations screen, select I personally paid health insurance... and then click Continue.
13. On the Self-Employed Health Insurance screen, fill in the W-2 box 5 amount and the amount of health insurance premiums you paid (this may be on your W-2 in box 14).
    • If you purchased insurance through Healthcare.gov or your state marketplace, leave the second box blank.
14. Select Continue.
15. On the Long-Term Care Insurance screen, enter any long-term care premiums and select Continue.
16. Select Yes or No to Does your K-1 have a code V in Box 17?
    • If you selected Yes, follow the screens until you reach the S Corporation K-1 Summary.