S Corp 2% shareholder health box 14

[KonaCat12]

S Corp greater than 2% shareholder with shareholder health paid by the company - correctly reported on W-2 as wages and in Box 14. How do I enter the insurance piece in TT in order to get my deduction?

[MinhT1]

As a greater than 2% shareholder of a S-Corp, your health insurance premiums are deductible as Self-employed health insurance.

You can enter your health insurance costs when entering your form K-1.

Revisit your K-1 entry until you get to the page Describe this Partnership. Check the box I personally paid health insurance and/or long-term care insurance premiums for myself and my family. and click Continue. On the next page, you can enter your health insurance premiums which will be transferred to Part II line 16 of Schedule 1 of form 1040.

[KonaCat12]

This is the case even though the owners don't pay their own health insurance?

[MinhT1]

Yes, as these premiums have been included in wages and taxed on your form W-2.

[paize038]

Is the health insurance premiums for a 2% S-corp owner deductible even if her spouse is eligible for a health plan at his employer?  From IRS Bulletin 2008-2 "Also, the deduction is not allowed for amounts during a month in which the taxpayer is eligible to participate in any subsidized health plan maintained by an employer of the taxpayer or of the spouse of the taxpayer. Section 162(l)(2)(B)."  I can't seem to find anything more recent.

Thanks.

[gloriah5200]

No, it is not if the s corp shareholder is eligible to be covered for a health plan with the spouse's employer.

"But if you were also eligible to participate in any subsidized health plan maintained by your or your spouse's employer for any month or part of a month in 2020, amounts paid for health insurance coverage for that month can't be used to figure the deduction. Also, if you were eligible for any month or part of a month to participate in any subsidized health plan maintained by the employer of either your dependent or your child who was under age 27 at the end of the year, don’t use amounts paid for coverage for that month to figure the deduction."

For additional information refer to the following link for the tax year 2020 General Instructions for Form 1040:

IRS General Instructions for Form 1040 pg 88

[jpdavenport]

I paid Health Insurance which was reported as income on my salary from the Subchapter S corporation for which I own 46% of the stock.  My salary box shows $4,981 in box 14 which was the insurance. But I do not see that entry any where in  the 1040.  I was told to go to Schedule 1, line 16 and enter it there.  But I cannot edit that cell.  It must be info being brought in from another form.  What form?

[Irene2805]

Your self-employed health insurance premiums reported in Box 14 of your W-2 are entered when you are entering the K-1 form.  Please follow these steps:

1. When you are entering the K-1 from your S-Corporation, you will come to a screen, Other Situations.   [See Screenshot #1, below]
2. On this screen, mark the box I personally paid health insurance and/or long-term care insurance premiums for myself and my family and this S corporation paid me wages.
3. A few screens later you will see Self-Employed Health Insurance.  Enter the amount of Medicare wages from your W-2 and the health insurance premiums you paid. [Screenshot #2]
4. You will be able to enter any long-term care premiums on the next screen.

Screenshot #1

Screenshot #2

@jpdavenport

[drkkngt1]

Where do I enter this for tax year 2021?  The K1 entry for Turbotax Home and Business doesn't contain an entry point for claiming the deduction for health insurance premiums, health expenses or long term care premiums.  In every year previously I have been able to enter this info, but there is no apparent place to do so for the 2021 tax year version.

[samcalhoun828]

What "Category" should I choose in Box 14 if I have 'Shareholder's Health Insurance Premiums' to deduct?

[DaveF1006]

If there is a classification called "other", you can choose that. Be sure to enter S Corp 2% shareholder Health Insurance as a description.