I am an owner (>2% shareholder) of a small S-Corp. So I first used TurboTax Business to produce the S-Corp return, which included the K-1 Income for my personal return. I am now using TT Premier for my personal return.
Last year for the first time my business started to pay for health insurance for me (and my family). It's a 100% company expense, not taken out of my paycheck, and it is included as part of my taxable wages (Box 1 of W-2). However, my understanding is that I can still take the health insurance premiums as a deduction on my personal return. It appears in the forms it's in Schedule 1, Line 16, but the box doesn't appear editable. How do I claim this deduction?
Note: this year I didn't purchase TT Home & Business version since last year I noticed I didn't really use the Business side.
Thanks.
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Return to the K-1 entry screen and look for this screen in the interview :
Return to the K-1 entry screen and look for this screen in the interview :
They should reword it, since I did not "personally" pay for the health insurance out-of-pocket (the premiums are paid by the business), but it appears you are correct if I click on the Learn More link that this is where I would get the deduction. Thank you.
But you did pay for it since it was part of your wages paid by the corporation ... if they did not pay you wages and report them on a W-2 then you cannot take the deduction. It is phrased correctly per the IRS regulations on the matter.
The payments for the monthly premiums came directly from the company bank account; I did not "personally" pay for the premiums out of my bank account nor is it deducted pre-tax from my paycheck (since I am >2% S-Corp shareholder). However, they are reported as wages (Box 1 on W-2)...
Ok ... think about it ... you did pay via the corp because the payments were included in your wages. You may not have sent a check from your personal account but you did pay indirectly thru the corp ... this way you simply skipped the "middle man".
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