Can a 2% Sub S owner deduct health ins(on a family plan) on 1040 line 29 if his wife also has a sub s with a health plan? Can either ever deduct Health Ins on line 29?

[asgales]

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?

[WillK]

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. 

[fcm339]

There is no line 29 for 2019.  So, now what?

[BarbaraW22]

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:

1. Click on Wages and Income at the top of the screen

2. Scroll down to S-corps, Partnerships, and Trusts and click Show More

3. Click on Start or Revisit next to Schedule K-1 and then click Start or Update next to S corporations (Form 1120S)

4. If you have not set up the information for your S-Corporation, enter your S-Corp Name & address.

5. If you have set up your S-corp already select Edit next to your company name

6. 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.

@fcm339