K-1 entry for HSA

[leo820]

Hello - I am the owner and single employee of an S-Corp.  I am trying to determine how to enter the amount of HSA and medical expense contribution into the K-1 that my company put forth.  That amount is $4000 for 2022.  I am not sure which 'box' to enter this information into.

I've tried box 13 (Medical Insurance) but this throws off my balance sheet by the exact amount.

[RobertB4444]

If your company received a deduction for the HSA contribution on your 1120-S then you can't get a deduction for the same amount on your personal return.  

So you would enter the amount contributed on your behalf directly into the deductions and credits section as a contribution made on your behalf by your employer.  

Go to the deductions and credits section and scroll down to medical.  Answer all of the questions about your HSA until you reach the section asking if your employer made any contributions to your HSA not reported in box 12 of your W2.  Answer yes to that and then enter the $4000 into the third block (other employer contributions not reported in box 12).  

The next question is whether you had a high deductible health plan and once you answer yes to that and indicate the type of coverage it will show the contribution from your S-Corp and you won't be taxed for it.

@leo820 

[leo820]

Thank you Robert for the response.  I am having an issue with my Corporate tax return and the ability to correctly reflect the amount of HSA the company has contributed.  I have not yet created personal returns.

For example in 2021, the corporate Schedule k-1 for HSA is reflected on line item 17 with code AD* and no amount.  In the supplemental information form on page 2, it state Box 17 with a description of "AD Shareholder's Health Insurance Premiums (Form W-2, Box 14). . . . . . . . . . . . . $ <actual dollar amount>.

I left off the dollar amount above but it reflects what the company paid in as health insurance premiums.

I am looking for guidance on how to do the same thing for 2022 Schedule K-1.

[Mike9241]

you probably did your w-2 wrong since you are  MORE THAN 2% SHAREHOLDER. there is no K-1 entry for this

Greater than 2 percent shareholders of an S Corporation have different requirements when it comes to an HSA. Any contribution made by the employer to the HSA of a greater than 2 percent shareholder must be included as taxable income on the shareholder’s W-2 (box 1), but are not subject to employment taxes. To help offset the impact of including the company’s contribution as taxable wages, the shareholder can take an above-the-line tax deduction on their personal income tax return equal to the contribution.  it is not reported in box 12w. of the w-2  rather in box 14. then the shareholder takes the deduction on their 1040

return as if they personally made the contributions

this is similar to how health insurance for 2% shareholders is supposed to be handled with the additional stipulation that the policy must be in the S-Corp name or the S-corp reimburses the shareholder if the policy is in their name. failure and the shareholder can only take the health insurance premiums as an itemized deduction - no deduction for self-employed health insurance. in part IRS Notice 2008-1

[leo820]

Thanks Mike.  I have the contribution correctly identified on my W-2 in Box 14.