topic Health insurance premium deduction for S-Corp shareholder by family attribution in Deductions & credits

Health insurance premium deduction for S-Corp shareholder by family attribution

ElizabethN — Tue, 10 Feb 2026 10:47:23 GMT

I work for an S-Corp where I am a 2% shareholder by family attribution only (no actual ownership). Therefore I do not receive a K-1. My health insurance premiums are included on my W-2, and they are deductible just as for any actual shareholder, but there is nowhere in TT to do this outside of entering K-1 info. I have seen this question was posted once a few years ago, and the only suggestion was to create a "mock K-1" and then entering the premiums there. Trying this method does create the new 7206 and flows through to the correct place on 1040. However, it also creates a Schedule E (p. 2), listing the S-Corp entity and $0 income. The software will not allow me to delete the Schedule E. Has anyone tried this method in the past and had any issues with the IRS questioning it? The concern is I would be submitting a Schedule E for an S-Corp I don't have actual ownership in and do not have a K-1. Thanks in advance.

Re: Health insurance premium deduction for S-Corp shareholder by family attribution

PatriciaV — Tue, 27 Feb 2024 21:43:35 GMT

The accepted method to report health insurance premiums for an S-Corp shareholder by attribution is to use a "mock" Schedule K-1 with zero income. If the IRS has questions, you should have proof of the attributed ownership.

Re: Health insurance premium deduction for S-Corp shareholder by family attribution

user17673840086 — Fri, 02 Jan 2026 20:05:10 GMT

@ElizabethN Did you ever figure this out? Is filling out a mock K-1 the only method?

Re: Health insurance premium deduction for S-Corp shareholder by family attribution

ElizabethN — Fri, 02 Jan 2026 20:24:51 GMT

I did use the mock K-1 method, and it seemed to work. It went through and no IRS questions to date. That was for my 2023 return. I had a different source of insurance in 2024, so it was not applicable to me on last year's return. I don't know if anything has changed in the software since then.

Re: Health insurance premium deduction for S-Corp shareholder by family attribution

jac310 — Fri, 02 Jan 2026 20:34:14 GMT

@ElizabethN Ignore my username, I have multiple accounts. Thank you so much for the response! I guess I'll see in the next month or so whether TT has another method of entering this info.