I am considered a 2% shareholder of an S-Corp because of family attribution rules. I do not receive K-1. The premiums paid by the corporation are added to box 1 of my W2. I am trying to deduct these premiums. How do I do that if I do not have a K-1?
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I'm not sure that this question has ever been asked on this forum.
It might be that this situation is not supported by TurboTax. It appears that TurboTax only generates the self-employed health insurance deduction for an S-corp shareholder through the entry of a Schedule K-1 (Form 1120-S). I thought it might work to enter a dummy K-1 identical to the one received by the family member through which you have ownership attribution but with no amounts entered in Part III. You would then get the opportunity to indicate that you paid health insurance premiums and that the S-corp paid you wages. However, doing this appears to result in an extraneous Schedule E entry that is associated with the dummy K-1, although with no dollar amounts on the dummy K-1, the taxable result on Schedule E is unaffected.
If the attribution is through your spouse and you file jointly, an alternative might be to associate the self-employed health insurance deduction with your spouse's Schedule K-1. I'm not aware of anything on the filed tax return that actually identifies which spouse is associated with the self-employed health insurance deduction.
The business is owned by my parents. Myself, my siblings and my husband are all employed by the company.
I tried to enter a dummy K-1 but ran into the problem you described.
I would do it as described above. Just enter a K-1 with $0 of income on it (you can borrow the K-1 from your family member if you want the other information from it).
Then in the K-1 section of the program, it will ask you about health insurance.
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