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Schedule K-1 Help
K-1 received has the following info:
General Partner, Profit/Loss %: 99%
Line 1: 53,110 (Ordinary Business income/self-employment earnings)
Line 13W : 12,573
- Note, the description for 13W states Member Medical
Line 14A: 53,110
Line 14C: 117,362
Also, Line 20Z (Section 199A): Shows 53,110
Not, sure how to report line 13W Member Medical?
Also, do I need to do anything with Line 14C and 20Z?
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Schedule K-1 Help
it is unknown if the partnership is handling the reporting of member medical correctly. here's what the IRS says
Self-employed health insurance premiums.
Premiums for health insurance paid by a partnership on behalf of a partner, for services as a partner, are treated as guaranteed payments. The partnership can deduct the payments as a business expense, and the partner must include them in gross income. However, if the partnership accounts for insurance paid for a partner as a reduction in distributions to the partner, the partnership cannot deduct the premiums.
A partner who qualifies can deduct 100% of the health insurance premiums paid by the partnership on their behalf as an adjustment to income. The partner cannot deduct the premiums for any calendar month, or part of a month, in which the partner is eligible to participate in any subsidized health plan maintained by any employer of the partner, the partner's spouse, the partner's dependents, or any children under age 27 who are not dependents. For more information on the self-employed health insurance deduction, see chapter 6 of Pub. 535.
so 13W seems like the wrong line
if it's not for health insurance it should not be deducted by the partnership but rather reflected in distributions with a notation in box 20
13M should have been used for medical insurance if the partnership accounts for insurance paid for a partner as a reduction in distributions to the partner. the partnership cannot deduct the premiums.
A partner who qualifies can deduct 100% of the health insurance premiums paid by the partnership on their behalf as an adjustment to income that's what 13M does and then Turbotax asks addition questions so you get the deduction on your 1040
enter the 20Z info. later on Turbotax will ask certain questions about QBI/199A income and you will enter the 53110 a second time. Turbotax only uses 20z to ask further questions about 199A. there is no doubling up.
however, all this depends on whether or not the partnership is correctly reporting yours and other members
Medical Expenses which at this point seems questionable.
enter 14c but this should have no effect on your SE tax. this is solely for the non-farm optional method of computing SE tax. see Schedule SE Part II
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Schedule K-1 Help
it is unknown if the partnership is handling the reporting of member medical correctly. here's what the IRS says
Self-employed health insurance premiums.
Premiums for health insurance paid by a partnership on behalf of a partner, for services as a partner, are treated as guaranteed payments. The partnership can deduct the payments as a business expense, and the partner must include them in gross income. However, if the partnership accounts for insurance paid for a partner as a reduction in distributions to the partner, the partnership cannot deduct the premiums.
A partner who qualifies can deduct 100% of the health insurance premiums paid by the partnership on their behalf as an adjustment to income. The partner cannot deduct the premiums for any calendar month, or part of a month, in which the partner is eligible to participate in any subsidized health plan maintained by any employer of the partner, the partner's spouse, the partner's dependents, or any children under age 27 who are not dependents. For more information on the self-employed health insurance deduction, see chapter 6 of Pub. 535.
so 13W seems like the wrong line
if it's not for health insurance it should not be deducted by the partnership but rather reflected in distributions with a notation in box 20
13M should have been used for medical insurance if the partnership accounts for insurance paid for a partner as a reduction in distributions to the partner. the partnership cannot deduct the premiums.
A partner who qualifies can deduct 100% of the health insurance premiums paid by the partnership on their behalf as an adjustment to income that's what 13M does and then Turbotax asks addition questions so you get the deduction on your 1040
enter the 20Z info. later on Turbotax will ask certain questions about QBI/199A income and you will enter the 53110 a second time. Turbotax only uses 20z to ask further questions about 199A. there is no doubling up.
however, all this depends on whether or not the partnership is correctly reporting yours and other members
Medical Expenses which at this point seems questionable.
enter 14c but this should have no effect on your SE tax. this is solely for the non-farm optional method of computing SE tax. see Schedule SE Part II
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