Self Employed Health Insurance

[ubedo]

I have two partnerships, one S corporation and one 1099-NEC company.  I have been claiming my self employed health insurance under the partnership I have had for the most amount of time, for a good 5 years. Last year was my first year with the S Corp and the 1099 business.  This year I am trying to claim the insurance as I always do in the longest partnership and it is not calculating and giving me a deduction. Under Business Income and Expenses Self Employed Health Insurance It tells me "No portion of your self employed health insurance premiums has been deducted from your total income it is insufficient to permit a deduction for health insurance."  Your premiums will be deductible as a medical expense if you itemize deductions.  I never itemize my deductions.  When I enter these same numbers under my 1099-NEC expenses I get the deduction just fine.  My understanding is that I have to claim it under the company it was originally purchased under and that would ne the longest held partnership that it will not let me do it through.  I need to know if I can claim this deduction under my 1099-NEC that was started last year. And by the way my premiums were almost as much as the actual income.  Please Advise.

[dmertz]

To be able to claim any amount self-employed health insurance deduction with respect to your S corp, your W-2 from the S corp must have a nonzero amount in box 1.  To be able to claim the full amount of premiums paid, the amount in box 1 of your W-2 from the S corp must be at least as much as the premiums paid.  You need to have told TurboTax these amounts during entry of the Schedule K-1 (Form 1120S).

[ubedo]

I do not know if I have to claim it with respect to the S Corp. I have always done so with respect to to Partnership but turbo tax is not calculating that as a deduction.  I want to know why?  Of 2 partnerships 1 corporation and one self employed company why can't I take the deduction?  It is over 20,000.00.  Which company am I supposed to be claiming it under?

[dmertz]

Having the S corp does not prevent you from claiming the self-employed health insurance deduction with respect to one or both of the partnerships just as you have done in the past.  Make sure that your partnerships show sufficient amounts with code A in box 14 to cover the deductible portion of self-employment taxes and the self-employed health insurance deduction.  When entering the Schedules K-1 (Form 1065), make sure to mark the box on the Describe the Partnership page to indicate that you personally paid for health insurance.

[JeffreyR77]

You likely are not being allowed to claim the self-employed health insurance premiums against the 1099-NEC business if the premiums were nearly as much as revenue. 

To claim the deduction, you must have profit to match the premiums.  

You still qualify to claim the self-employed health insurance deduction in regard to your partnership(s). 

On the Describe the Partnership screen verify that you have indicated you personally paid for health insurance. 

Box 14 needs to have Code A and amounts to cover the self-employed health insurance deduction.  

[dmertz]

[Edit] JefferyR77, the income on the Form 1099-NEC would not apply unless the self-employed health insurance was being claimed against the Schedule C income.  Claiming under the partnership income as was done in the past would mean that it would claimed against the Schedule K-1 (Form 1065) box 14 which you went on to describe.

[ubedo]

HI,

I have entered all the information into turbo tax that I need to and it will not give me my health insurance deduction, box 14 has code A and a positive amount.  I am assuming that there may be something wrong with my turbo tax software. 

[ubedo]

As I said in my post I entered the numbers in my 1099 income and expenses and it did give me the insurance deduction. There is sufficient profit to match the premiums and I did mark the box I personally paid for the health insurance.