topic S-corp self employed health insurance deduction in Business & farm

S-corp self employed health insurance deduction

home — Sat, 01 Jun 2019 00:07:46 GMT

I am an s-corp and eligible to deduct medical premiums on line 29 since I can't deduct it from the business side. However I can't find where to input this information?

To enter Health Insurance Premiums you paid as a Self Emp...

ChelsiE2 — Sat, 01 Jun 2019 00:07:46 GMT

To enter Health Insurance Premiums you paid as a Self Employed S-Corporation Member:

Sign into your TurboTax Account
Click Continue if prompted to do so
Click Search in the upper right hand corner of your screen
Type "K-1"
Click Jump to K-1
Click through until you have the option to Update or Add your K-1
If you've already entered your K-1, click Edit, if you haven't then click Add
Enter all the applicable information or click through until you come to the Other Situations screen (see 1st attachment below for reference)
Check the box next to, "I personally paid health insurance...."
Click Continue until you get to the Self Employed Health Insurance screen (see 2nd attachment for reference). Here you can enter the amounts you paid.

good answer, it works even though the question asks if yo...

kathyvertullo — Sat, 01 Jun 2019 00:07:47 GMT

good answer, it works even though the question asks if you "personally" paid the premiums... as long as the S corp paid and included it in your wages in box 1 of your w-2 and you own more than 2% you add it here.

The problem I've encountered is that the amount of insura...

rwfossum — Sat, 01 Jun 2019 00:07:48 GMT

The problem I've encountered is that the amount of insurance paid shows up in my personal "medical deductions" section; it should show up on 1040 line 29. The insurance amount is included in my w-2 gross wages (with box 14 checked and the insurance amount is in box 14) but is not included in W-2 lines 3 (social security wages) or box 5 (medicare wages), which is correct for an S-corp.

What if I do not receive a k-1 because this is a fringe b...

robyn-campbell — Sat, 01 Jun 2019 00:07:49 GMT

What if I do not receive a k-1 because this is a fringe benefit? the s-corp 2% medical premium still shows up in box 1 of my w-2.

@robyn.campbell If you are a shareholder in an S-Corporat...

ChelsiE2 — Sat, 01 Jun 2019 00:07:51 GMT

@robyn.campbell If you are a shareholder in an S-Corporation you should receive a Schedule K-1. If you have not received a Schedule K-1 you should contact the managing shareholder. You should not file your tax return until you receive this Schedule K-1.

After spending 2 hours trying to figure out where to ente...

steveandmad — Sat, 01 Jun 2019 00:07:53 GMT

After spending 2 hours trying to figure out where to enter my 2% owner in S Corp health insurance premium deduction, we found this answer and it worked perfectly. Thank you.

I did this and it still does not show up on line 29.

kmkulasza — Sat, 01 Jun 2019 00:07:55 GMT

I did this and it still does not show up on line 29.

Following these instructions results in the amount going...

pshaskins — Sat, 01 Jun 2019 00:07:57 GMT

Following these instructions results in the amount going to Schedule A, line 1, not line 29.

Did the rules change this year?

pshaskins — Sat, 01 Jun 2019 00:07:59 GMT

Did the rules change this year?

These instructions did not work until I also entered W-2...

slhayes61 — Sat, 01 Jun 2019 00:08:01 GMT

These instructions did not work until I also entered W-2 Medicare Wages (Box 5) in the Self-Employed Health Insurance Deduction Worksheet.

Was anyone able to figure out how to enter the premiums p...

skowronek — Sat, 01 Jun 2019 00:08:02 GMT

Was anyone able to figure out how to enter the premiums paid by S-corp and have it show up on line 29 of 1040 where it should appear rather than on Schedule A?

[This suggestion is incorrect. The box 5 amount must be...

dmertz — Sat, 01 Jun 2019 00:08:05 GMT

[This suggestion is incorrect. The box 5 amount must be entered.]
In the follow-up to indicating that you personally paid for the health insurance, when TurboTax asks for the box 5 amount from the W-2, enter the box 1 amount instead.

Thank you @dmertz!! I was pulling my hair out what I was...

skowronek — Sat, 01 Jun 2019 00:08:07 GMT

Thank you @dmertz!! I was pulling my hair out what I was missing.

@dmertz You need to enter box 5, not the amount from bo...

TaxGuyBill — Sat, 01 Jun 2019 00:08:08 GMT

@dmertz You need to enter box 5, not the amount from box 1. You need to have 'other' wages on the W-2 (which will show up in box 5) besides the health insurance wages (which only show up in box 1).

Ah, I see. This seems to result from the line 29 deducti...

dmertz — Sat, 01 Jun 2019 00:08:11 GMT

Ah, I see. This seems to result from the line 29 deduction not being permitted to exceed wages as wages are defined in section 3121 of the tax code. The section 3121 definition of wages explicitly excludes amounts paid for insurance (even though the amount must be included as "wages" in box 1 of the W-2 of the S corp). So the box 5 amount is the amount that must be entered. I stand corrected.

It appears, then, that all of these people who believe that they are entitled to the line 29 deduction when the amount in box 5 does not support it are incorrect.

a BIG thank you to @slhayes61 for the tip! In the 2nd sc...

flyinhigh — Sat, 01 Jun 2019 00:08:12 GMT

a BIG thank you to @slhayes61 for the tip! In the 2nd screenshot (titled Self-Employed Health Insurance), I had not entered the Medicare Wages (the amount from Box 5 on my W-2) because of the note at the bottom that said not to enter premiums if you bought insurance through a state marketplace (I overlooked that bold word 'only'!), so line 29 was blank. Since I bought insurance through a state marketplace, I have a 1095-A. Once I entered the Medicare Wages, TurboTax pulled the amount from my 1095-A into Line 29.

I spent HOURS trying to figure out how to get a number to appear on Line 29 (it worked fine last year)!

BTW, I had a hard time getting back to the Self-Employed Health Insurance screen because, on the Other Situations screen, the checkbox next to, "I personally paid health insurance...." was NOT ticked (even though I ticked that box when I went through the step-by-step the first time).

This does not work for me, even though wages are much hig...

enon — Sat, 01 Jun 2019 00:08:12 GMT

This does not work for me, even though wages are much higher than insurance premium. It does not pull it on line 29. How the heck does this work?

@epitka Did you re-enter your Medicare wages in the K-1...

TaxGuyBill — Sat, 01 Jun 2019 00:08:15 GMT

@epitka Did you re-enter your Medicare wages in the K-1 section? You need to do that (in addition to entering all of yourW-2 information in the W-2 section).

@TaxGuyBill, Yes on W2 box 5 has amount that is much high...

enon — Sat, 01 Jun 2019 00:08:17 GMT

@TaxGuyBill, Yes on W2 box 5 has amount that is much higher than the insurance cost. So I come over to K1, check the box that activity is at risk, and that I paid all insurance. Next question asks how much were medicare wages (box 5), and I enter amount from W2. Next question is how much was insurance, I enter that (11,400), move to next screen that asks about long term care insurance costs, which are none, and I don't see my tax due drop at all. If I go to 1040, line 29 and override it, my tax due drops by 3K. What to do?