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New Member
posted Mar 19, 2020 4:22:53 PM

s-corp health insurance deductions

I am an scorp qualified owner and health insurance is on my w-2.  However, my health insurance was purchased through the marketplace ... even though I paid FULL cost with no subsidy.  It looks like this can't be deducted as an adjustment to income above the line and, instead, requires it to be included in the medical deduction limit.  Because of this, i am getting no deduction for the high premiums.  Is there a way around this?

 

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4 Replies
Expert Alumni
Mar 19, 2020 5:01:24 PM

If you are a qualified S-corp owner, you can deduct the premiums that you paid out-of pocket for the Marketplace policy as Self-employed Health insurance (above the line).

 

The amount you paid is calculated by TurboTax when you enter your 1095-A. On the page Let us know if these situations apply to you, check the box I'm self-employed and bought a Marketplace plan.

Level 15
Mar 19, 2020 8:34:37 PM

In addition to what  Minh told you, when you enter your K-1 check the box about health insurance.  You won't enter the cost of insurance here, BUT be sure to answer all of the questions, especially the one about Box 5 of your W-2.

New Member
Mar 21, 2020 11:20:24 AM

I own an S Corp and the health insurance premiums paid for me are in box 14 on my W2. I cannot find where to enter on TurboTax and K1. Thanks 

Level 15
Mar 21, 2020 4:27:06 PM

In the K-1 entry follow the interview screens ... and confirm your health insurance is added to the box 5 amount on the W-2 ... what is in box 14 is only informational in nature....