Does it make a difference if a 2 member LLC pays for their own self employed Medical from their Cash Distribution or from Guaranteed payments.

Forum|Forum|7 years ago
June 1, 2019
1 reply
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In the end, after we generate the K1'S, does it make a difference how the money is paid out to the members to pay for medical. I have a choice of full distribution for salary and medical, or does medical have to be separated into the guaranteed payments.

TurboTax Business Windows

D

DavidD66

To qualify for the self-employed health insurance deduction, the plan must be “established under your business”. They should be either paid by the partnership, or if established by you, the partnership should reimburse you. These health insurance premium amounts are reported as (included in) guaranteed payments on line 4 of your Schedule K-1.

To help you calculate the deduction, the amount of health insurance premiums should also be reported on line 13 of your Schedule K-1.

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F

fcarboneAuthor

Employee

From the above answer I understand line 4 of schedule K-1, but why would it be used as other deductions on line 20. It does appear in self employed earnings, line 14.