S-Corp Shareholder Health Insurance Premiums w/ Premier

[warren_cmb]

I'm trying to get the Health Insurance Premium deduction as a S-Corp shareholder with my K-1 using the instructions from the link below (with Turbotax Premier). However, when trying to file, it keeps asking me to upgrade to the Self-Employed plan. I've done this exact same thing for many years with Premier and nothing has changed in my taxes. Did something change in the way Turbotax files this since last year?

https://ttlc.intuit.com/community/tax-topics/help/can-i-deduct-health-insurance-premiums-as-an-s-cor...

Thank you in advance for your help!

[Mike9241]

the IRS requires that the health insurance for the 2%+ s/h  be in the name of the s/h or the company. the S-Corp must pay the premiums either directly or by reimbursement to the shareholder if they paid.  further, the health insurance must be included in taxable wages box 1 of the w-2.  the s/h wages are reported on line 9 of the S-corp return no deduction for the insurance is taken on the S-Corp return. (it s deducted as comp to the s/h)

the insurance should also be reflected in box 14 of the s/h W-2

the IRS has ruled that if the insurance is not included in the w-2 it is not deductible by the s/h nor the corp.

on the Turbotax k-1 there should be a link to enter the health insurance premiums paid included on your w-2  

in interview mode you should come to a screen that says other situations one of the lines is for your health insurance

[warren_cmb]

@Mike9241 thanks for the response. Everything you mentioned is correct and applicable to my case. As I mentioned, I've done this for several years using Premier. For some reason, this year, it's asking me to upgrade to Self Employed. I'm trying to figure out what has changed since last year.

Again, filing my 1040 here using my S-Corp W-2 and K-1. Health insurance premium is included in W-2 Box 1 and Box 14. The link in my original post refers to these as well and I followed those instructions. Just not sure why I can't file this with Premier anymore. 

I went to Tools and checked the forms created after adding the SEHI premium in K-1 workflow and the only difference is the addition of Sch K-1 Wks-S Corporations (SPEKTE LLC) -- SE Health and LTC Insurance Dedn Wks.

[mr24y]

I have this same exact issue.   I've used TT for years and have had this self employed health insurance situation for at least the past 6 years.  I've never had to upgrade beyond using Premier.  Yet this year TT is making me upgrade to Self-Employed version.   What has changed in 2022 to cause this?   

I understand all of the tax rules and regulations associated with this health insurance issue and my W2 includes my health insurance expense.  Additionally TT is calculating the tax correctly in that the deduction does roll through correctly from the schedule onto the 1040, as shown in the preview screens.   

So this is really a question for TT, why did they change a feature which was useable within Premier and now make us upgrade to self-employed when we don't need to?  

[AliciaP1]

Since your health insurance premiums are on your W-2 you should not have code AD for box 17 on your K-1 and you should not enter that on your K-1 entry in TurboTax.

To report your self-employed health insurance for the deduction you need to review that you have entered your box 14 information for the health insurance amount included in box 1 of your W-2 if it is reported.  

You also need to ensure you have marked 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." on the Other Situations screen toward the end of the K-1 entry screens.  Also, be sure you have entered the premium amount for insurance payments not reported on 1095-A on the Self-Employed Health Insurance screen.  

Finally, you need to ensure you have marked the box "I'm self-employed and bought a Marketplace plan" on the Let us know if these situations apply to you screen toward the end of the 1095-A entry.

To find these forms in TurboTax Online you can reference W-2, Where do I enter a K-1 that I received?, and 1095-A.

@warren_cmb

@mr24y

[GB2021]

Hi,

Did you receive an applicable reply to this? I had posted the same question yesterday (no replies) but came across your question today. Were you able to resolve this?

[GB2021]

Hi Alicia,

We are simply asking why this year TT is asking us to upgrade to Self Employed version when we have been using the Premier version to do the same task (i.e. deduct health insurance) for years in the past?

[mr24y]

Hello GB2021 - No, I never received an adequate reply to this issue.  My only resolution was to pay them the $30 more money and do the upgrade.   It's really ridiculous, they changed something which worked completely fine for well over 6 years and gave us zero additional value.   I did the upgrade and it didn't even run the check again for all the new features and benefits the upgrade supposedly gave me.   I'm very frustrated about the whole thing, I might look to use a different program next year.  

I appreciate the response from Alicia and others on where to place the data, but I guess our question is more to the TT staff involved in the back end and determining what situations require an upgrade.  This situation never required an upgrade before and it shouldn't have required an upgrade this year.

[GB2021]

Thank you for responding. I think it's their way to make $30 more per s-corp owner, but they can own up to it as a corporate decision.

I think since they changed something that was working quite well without an explanation, it was causing confusion (atleast for me) and concerns that something had changed on the IRS side and maybe I should be doing things differently.

I will go ahead and upgrade to self-employed. Though I am not comfortable with this decision as I dont understand why TT did what they did.

Thanks again.