What’s the Best Way to get TurboTax help?

[chuck3]

My taxes for both my S-Corp and my personal income taxes are 99% complete using TurboTax; however, there is one item I need a little help on that has some impact on both returns and that is the area of the self-employment health insurance deduction.

I reimbursed myself in 2023 from my company for health insurance payments and I have added that to the salary line on my W-2; however, some additional work is needed to claim that as a deduction on my personal income tax return.  I think I need to file form 7206 with my K-1, but I’m not sure how to go about doing that.

What’s the best way to get help from TurboTax to complete these returns?

Thanks,

[PatriciaV]

This forum is the best source of free tax advice available to you. If you wish to have the assistance of a live tax expert, you may consider upgrading to TurboTax Live.

However, if you have entered the self-employed insurance premiums correctly, Form 7206 should be included in your personal tax return.

In TurboTax Business, total medical premiums paid by the LLC for the shareholder are entered under Deductions >> Insurance, Health and other Benefits. Your entry here is shown on Form 1120S Line 7 under Deductions (added to other Compensation) and on the W-2 Box 1prepared for the shareholder.

In TurboTax for 1040, enter the W-2 as received. When entering Schedule K-1, continue to the Other Situations page and check the box for "I personally paid health insurance..." Then enter your S-Corp wages and the amount of premiums you paid on the Self-Employed Health Insurance page. This entry triggers the creation of Form 7206 where the premiums are reported on Line 1.

See also: Can I deduct health insurance premiums as an S Corporation shareholder?

[chuck3]

Thank you for your response.  I've tried to do this exactly as you suggested, but I believe that there is a bug in TurboTax Business that is causing this not to work.  There seems to be a conflict in TurboTax Business between entering data into the step-by-step and entering data into the forms.  The step-by-step seems to be overriding the data entered directly into the forms or vice-versa.

• In the step-by-step
  • When I put in the amount of insurance under deductions-insurance, health, and other benefits, TurboTax forces the amount I entered there to zero and behind the scenes adds it to the Compensation and Benefits-Salary and Wages paid field.
  • In the Salary and Wages paid field, the amount I entered is overridden and replaced by the total of salary and wages and health insurance benefits.
• If I then look at this information in the forms,
  • On form 1120S line 18 (Employee Benefits Programs) is blank and is highlighted in red as missing data.
  • When I enter the correct data into Form 1120S line 18, it shows correctly there and the error flag goes away but the amount is double-counted in the income statement (once on line 18 and again in the salary.
  • If I then go to Form 1125-E, I notice that the salary there has been overridden by the step-by-step and is blank.  If I enter the correct amount there, it fixes the double-counting problem and the income statement comes out correctly.

My conclusion from all of this is you have to avoid entering data into the step-by-step process and directly enter it into the forms or it will get really messed up in TurboTax Business.  This seems to be a bug in TurboTax Business.

[chuck3]

One more question - how do I show the premiums paid for employee health care on the K-1 in TurboTax Business so that it shows up as a deductible item when I enter the K-1 into my personal TurboTax return?  Do I show it under "Other Deductions" on Statement A?