Form 1040 Line 29 not calculating from Form 1095a entries

[akordfinancial]

I am using TurboTax Online Self-Employed.  I report my self employment income by K-1 from and S-Corp, and also report wages (W-2) from the same S-Corp.  I pay my health insurance premiums personally through a Marketplace-purchased policy and received a Form 1095a. 

When I enter the 1095a information, it doesn't appear that TurboTax is calculating the deduction on Form 1040 Line 29.   I have associated the deduction to the correct (only) business through the questionnaire. I have completely deleted Form 1095a twice and re-entered it.  Nothing I seem to do is making it calculate correctly.  I noticed other places to enter health insurance premiums, but each place said not to enter premiums reported on Form 1095a. 

I noticed this when my tax amount in the upper left did not change when I entered the 1095a information.  When I view the forms, I see the line 29 is blank.  Does anyone know how to fix this? It's a good thing I was paying attention and didn't just skip over this $6000 deduction.

I contacted Support and they called me.  I was quickly transferred and asked to upgrade for an additional $90.  I don't believe that's necessary -- I am missing something simple, or it's truly not working correctly.

[ColeenD3]

Did you encounter and enter information in the screens below?

If so and you had positive income on your Schedule C, you should have gotten this result on Schedule 1:

[akordfinancial]

@ColeenD3  Yes to the first two.  On your question about Schedule C income -- I am confused.  I report my self-employment income through a K-1, so Schedule C is not applicable.  I have entered the K-1 information.  Additionally, the "Learn More" link next to the "I'm self-employed and bought a market place plan" links to the below help topic, which indicates in the last point that my K-1 income qualifies as self-employment and that I should receive the deduction by entering my 1095-A information.  Which is back to where I started -- it's entered but not working.  What am I missing?

Additionally, I have been through the Schedule C questions, and it clearly states that no 1095-A information should be entered in the expenses section.

Can I deduct my premiums if I’m self-employed and bought health insurance through the Marketplace?

If you reported self-employment income on any of the schedules listed below and you used that income to buy health insurance through Healthcare.gov or your state Marketplace, you can deduct your premiums on your taxes. However, you need to tie that income to your 1095-A so we can properly calculate the deduction amount.

• Schedule C – Self-employed business income
• Schedule F – Farm income
• Schedule K-1 partnership – This only counts if you earned self-employment income from that partnership, which means you would have an entry on Line 14 of your K-1 from that partnership.
• Schedule K-1 S corporation – This only counts if you have a W-2 from that S corporation and are an owner with more than 2% interest in the S corporation.

[ColeenD3]

You wrote "I report my self employment income by K-1 from and S-Corp, and also report wages (W-2) from the same S-Corp."  and " I report my self-employment income through a K-1, so Schedule C is not applicable."

 K-1 income from an S-Corp is not entered on Schedule C. You have no self-employment income.

Please see this answer by Fern.

An S Corp must file an 1120 S tax return. The rules for an S Corp are different than the rules for a Single Member LLC.If your business is considered an S Corp, you need to follow the S Corp rules.

The S Corp must file a tax return, an 1120 S.  Income and expense items are distributed to the owners of the S Corp via a Schedule K-1. You include the Schedule K-1 in your personal tax return.  Schedule K-1 is not reported on a Schedule C. You can use Turbo Tax Premier to include K-1 information.

To complete an 1120 S, you need to use Turbo Tax Business. This is a separate program from the programs used to prepare an individual tax return.

A single member LLC is a disregarded organization by the IRS.  This means that all income and expenses get reported on Schedule C of your individual tax return. When using Turbo Tax, use either Turbo Tax Self Employed (online) or Turbo Tax Home and Business (desktop software).

Any health insurance should be included on your W-2.

A 2% or greater S-Corp owner should have the premiums included as wage income that is not subject to FICA tax, and then subsequently deduct that reported "income" on the SEHI line. It is a way the S-Corp owner/shareholders can ensure that they are paying themselves "reasonable compensation".

[akordfinancial]

Thank you.  I have already prepared my S-Corp return 1120 using TurboTax Business.

My explanation may have not been clear, I receive a W-2 and the S-Corp has a net profit.  Regardless of what I do or don't do with Schedule C, the below "Learn More" link very clearly says that K-1 income qualifies as self-employment. I've added the blue bold. 

The problem remains the same:  the 1095-A entries are not recognizing the self employment income from the K-1 eventhough I was asked and linked it to the correct income from the list options provided. 

Can I deduct my premiums if I’m self-employed and bought health insurance through the Marketplace?

If you reported self-employment income on any of the schedules listed below and you used that income to buy health insurance through Healthcare.gov or your state Marketplace, you can deduct your premiums on your taxes. However, you need to tie that income to your 1095-A so we can properly calculate the deduction amount.

• Schedule C – Self-employed business income
• Schedule F – Farm income
• Schedule K-1 partnership – This only counts if you earned self-employment income from that partnership, which means you would have an entry on Line 14 of your K-1 from that partnership.
• Schedule K-1 S corporation – This only counts if you have a W-2 from that S corporation and are an owner with more than 2% interest in the S corporation.

[DavidS127]

Please clarify where you are looking to find your 2019 self-employed health deduction.  The self-employed health insurance deduction was on line 29 of the 2017 Form 1040 (year before Schedule 1 started); line 29 of the 2018 Form 1040 Schedule 1, but is on line 16 of the 2019 Form 1040 Schedule 1.

[akordfinancial]

@DavidS127 

I appreciate the reply and the clarification on the line item.  I just checked the Schedule 1 and Line 16 is blank.  I originally thought something was wrong when the tax due/refund amount in the upper left of the TurboTax screen did not change after I entered the health insurance premiums.  Any guidance you can provide is appreciated. 

[DavidS127 · Accepted solution]

Check your K-1 entry, in particular the "Other Situations" screen.  On that screen, make sure you checked the "I personally paid health insurance..............." question.  When you check that box, on the next screen you will get a box to enter your Medicare Wages (box 5 of your W-2) from This S Corporation.   Don't enter the medical insurance premiums, they are already in TurboTax from your 1095-A entry.  When you enter your W-2 box 5 wages in that box, your self-employed health insurance deduction should calculate correctly.

Here are the screenshots of the TurboTax screens you are looking for:

[akordfinancial · Accepted solution]

@DavidS127 Thank you!! That solved it.  I appreciate your patience and time on the responses to my questions. 

[DavidS127]

Glad to help. 

As an FYI, note that under the IRS rules, an S Corp taxpayer is eligible for the self-employed health insurance deduction only if the S Corp either pays the policy directly, or reimburses the shareholder for premiums paid directly by the shareholder (for a policy in the shareholder’s name).  In either case, the S Corp is required to include the health insurance premiums in the shareholder W-2 box 1 wages and report those health insurance premiums as wages on the Form 1120S.  

S Corps that have not complied with the IRS rules to report “more than 2% shareholder health insurance premiums” as W-2 wages need to file corrected W-2 forms for these more than 2% shareholders.  Note that only wages reported to the SSA within 60 days of the deadline are eligible to be counted as wages for QBI purposes.   Also, the S-Corp should report these health insurance premiums for more than 2% shareholders as wages on Form 1120S and the shareholder K-1 as part of Section 199A wage reporting.

For more information, see the IRS website at this link.

[kayv]

I am having the same problem as akordfinancial but when I enter my health insurance premiums at the 1095-A questions, and only enter my medicare wages at the K-1 questions and leave out the premiums paid because they were already entered at the 1095-A questions, as you recommended,  I do not get the Schedule 1, line 26 deduction for the full premiums from my income.  Rather, the premiums are on my Schedule A under medical expenses and are limited due to my income.  How do I get the premiums on Schedule 1, line 26 so I get my full deduction, but not on Schedule A?  When I enter premiums in both places I get a double deduction.

[DaveF1006]

If you are trying to claim a self-employed insurance deduction for your marketplace premiums made, go through the Personal Health Insurance section again making sure to answer the question about being self-employed AND selecting the Schedule C to which you want to attach the deduction.  When you are navigating  through the questions, you have to click on "edit" when you get to the 1095-A data screen.  The self-employment question is on the page after you have reviewed your 1095-a entries.