How to override

Forum|Forum|5 years ago
March 15, 2021
13 replies
123 views

How can I override in schedule 1? Previous years I have been able to unlock it in forms. What's going on this year?

Best answer by Opus 17

I believe it should be schedule 1, line 16. This is the line item the accountant has been telling me to use.

@Kimberly Boulden wrote:

I believe it should be schedule 1, line 16. This is the line item the accountant has been telling me to use.

I can tell you how to do it, but I don't endorse doing it. I don't know if it's right or wrong or what other effects it might have.

In Forms mode, open schedule 1 and double-click line 16, that will open the form 1040 worksheet. Go to part II line 16. When you click on this line, the word "Calculated" appears in the top right corner meaning you can't override here, you have to find the source. If you click the Help link, it will tell you that you need to find the "Self Employed Health and Long Term Care Worksheet". However, when you go to the Forms menu, it's actually listed under "SE Health and LTC Insurance Dedn Wks". Open this form, click "yes" to create a new form, it will ask for a business name and also create a schedule C for you. Once on this worksheet, you need to enter your premiums on line 1 (this does not require an override). Then skip the rest of the worksheet and enter the amount of your qualified deduction on line 10 (this will require an override which should be permitted).

Since this creates a schedule C (that you probably need to discard before filing) you will have to carefully review your forms before mailing. Also, the program may give you some errors on the error checks.

Good luck.

Opus 17

Level 15

Click the field you want to override and then click "Override" in the Forms menu. If a field can't be overridden, that means it is calculated from someplace else (a smart worksheet on the schedule or another program worksheet) and you need to find the source of the numbers to do the override.

Remember that tax returns with overrides can't be e-filed and overrides void the accuracy guarantee.

Kimberly BouldenAuthor

Level 2

I completely understand that an overridden tax return can't be e-filed, and it voids the accuracy guarantee.

The box I want to override is in schedule 1, and it pertains to self-employed health insurance. My health insurance on my w-2 is not pre-taxed because I am related to the owner of the company. Our business accountant has set this up, and has had me in previous years use this function. This year however it doesn't work. Why was this changed?

Kimberly BouldenAuthor

Level 2

@Kimberly Boulden

Be sure you are eligible to take the self-employed health insurance deduction, so that your return doesn't raise red flags with the IRS.

From IRS Publication 535, Page 21:

In order to take the self-employed health insurance deduction:

One of the following statements must be true.
• You were self-employed and had a net profit for the year reported on Schedule C (Form 1040) or Schedule F (Form 1040).
• You were a partner with net earnings from self-employment for the year reported on Schedule K-1 (Form 1065), box 14, code A.
• You used one of the optional methods to figure your net earnings from self-employment on Schedule SE.
• You received wages in 2020 from an S corporation in which you were a more-than-2% shareholder. Health insurance premiums paid or reimbursed by the S corporation are shown as wages on Form W-2.

https://www.irs.gov/pub/irs-pdf/p535.pdf

Yes, I am qualified to take this deduction.

https://www.currentfederaltaxdevelopments.com/blog/2019/4/14/self-employed-health-insurance-deduction-available-to-family-members-of-s-corporation-shareholder

In Chief Counsel Advice [social security number removed] the IRS held that family members, who while not directly holding shares in an S corporation, are deemed to be 2% shareholders under the rules of §318 are allowed to claim the self-employed health insurance deduction under IRC §162(l) if they otherwise qualify.