You are not supposed to be able take an above the line deductions for a more than 2% sub s shareholder if your spouse is eligible for any subsidized health plan. Can I make an above the line deduction because both husband and wife are considered self employed in there own Sub S, just for health insurance premiums purposes? If either the husband or wife pay health insurance from only one sub s or they pay from there own Sub S each, can we ever deduct health insurance on 1040 line 29?
You'll need to sign in or create an account to connect with an expert.
Yes, it can be deducted on their personal return if the healthcare premiums are paid for by the business AND the premium amount is added to the shareholders W-2 for that year. The business gets to deducts the premiums and the shareholder gets to report the amount on their 1040.
There is no line 29 for 2019. So, now what?
Yes, you can deduct the amount you paid for health insurance premiums if you received wages in 2019 from an S corporation in which you were a more-than-2% shareholder. This deduction is reported on line 16 of Schedule 1.
To report this deduction in TurboTax, please follow these steps:
Scroll down to S-corps, Partnerships, and Trusts and click Show More
Click on Start or Revisit next to Schedule K-1 and then click Start or Update next to S corporations (Form 1120S)
If you have not set up the information for your S-Corporation, enter your S-Corp Name & address.
If you have set up your S-corp already select Edit next to your company name
Continue through all the screens until you get to the section "Other Situations" and then select the box next to "I personally paid health insurance and/or long-term care insurance premiums for myself and my family and this S corporation paid me wages." See screenshot below.
7. Enter your health insurance premiums and other information in the section "Self-Employed Health Insurance." See the following screenshot.
8. Continue through remaining sections until you get to the K-1 Summary and then click Done.
Still have questions?
Questions are answered within a few hours on average.
Post a Question*Must create login to post
Ask questions and learn more about your taxes and finances.
257100km
New Member
Andy M
New Member
rforlow2024
New Member
gmapennymc
New Member
amyeneu
New Member