Partner self-paid medical insurance entry

[AliciaP1]

It would be helpful to have a TurboTax ".tax2022" file that is experiencing this issue.

You can send us a “diagnostic” file that has your “numbers” but not your personal information.  If you would like to do this, here are the instructions: 

Go to the black panel on the top of your screen and select Online. 

1. Scroll down to and select Send tax file to Agent. 
2. You will see a message explaining what the diagnostic copy is.  Click send through this screen and then you will get a Token number. 
3. Reply to this thread with your Token number. This will allow us to open a copy of your return without seeing any personal information.  

We will then be able to see exactly what you are seeing and we can determine what exactly is going on in your return and provide you with a resolution.

@A Walsh 

[A Walsh]

Thanks for the quick response.  I have sent a "tax file to agent" following your instructions.  My token is 1095669.  I look forward to hearing what you learn.

Andy

[AliciaP1]

Upon review, you do not have any Income from Self-employment listed in box 14 of your Schedule K-1 entry.  TurboTax reads your self-employment income as $0 because of this and disallows the deduction. You may want to revisit the Schedule K-1 interview section and review your K-1 entries.

Per the IRS:

Box 14. Self-Employment Earnings (Loss)

Code A. Net earnings (loss) from self-employment. If you are a general partner, reduce this amount before entering it on Schedule SE (Form 1040) by any section 179 expense deduction claimed, unreimbursed partnership expenses claimed, and depletion claimed on oil and gas properties. Do not reduce net earnings from self-employment by any separately stated deduction for health insurance expenses.

If the amount on this line is a loss, enter only the deductible amount on Schedule SE (Form 1040). See Limitations on Losses, Deductions, and Credits, earlier. If your partnership is an options dealer or a commodities dealer, see section 1402(i). If your partnership is an investment club, see Rev. Rul. 75-525, 1975-2 C.B. 350. 

Code B. Gross farming or fishing income. If you are an individual partner, enter the amount from this line, as an item of information, on Schedule E (Form 1040), line 42. Also use this amount to figure net earnings from self-employment under the farm optional method on Schedule SE (Form 1040), Part II. 

Code C. Gross nonfarm income. If you are an individual partner, use this amount to figure net earnings from self-employment under the nonfarm optional method on Schedule SE (Form 1040), Part II.

@A Walsh 

[A Walsh]

Thanks, but I still find this odd.  I've had the same situation for many years and this is the first time TT has treated it this way.

I appreciate your clarification.

Andy

[A Walsh]

I'm still not convinced this is being handled correctly.  Is there a reason there is no override for this entry?

Andy

[DawnC]

No, without self-employment and SE tax reported on the tax return, TurboTax won't allow the deduction on Schedule 1 (Line 17).   If you enter self-employment income, you will be able to take the deduction.   You mentioned earlier that you had self-employment income entered, but where?  

Deducting Health Insurance when Self-Employed   @A Walsh 

[A Walsh]

Never mind.   I'll resolve this on my own; I think my circumstances are unique.  Thanks for your help.