K1 1120S box 17 AG: Health Insurance Deduction

Forum|Forum|5 years ago
March 11, 2021
1 reply
0 views

How do I get the subtraction on line 16 of Form 1040, schedule 1 to populate from the amount on form K1, 1120S, Box 17, code AD? The instructions say to populate boxes in the K1, Form 1065 but say nothing about what to do for K1, 1120S in this situation.

TurboTax Home & Biz Windows

Best answer by Irene2805

In the interview for the K-1 from an S-Corp, the screen asking for percent of ownership is about three screens into the interview and comes right after the screen asking for the S-Corp identification Number. [See Screenshot #1 below.]

To enter the health insurance premiums you paid, follow these steps:

Go back into the K-1S entry portion of the interview.
You will come to a screen, Other Situations.
Mark the box I personally paid health insurance... [Screenshot #2]
Enter the premiums paid on the next screen, Self-Employed Insurance Costs. Click Continue.
On the next screen, you will have the opportunity to enter any long-term care insurance costs.
You will be brought back to the S-Corporation K-1 Summary. Click Done if you have no additional K-1s to enter.

Screenshot #1

Screenshot #2

@Driven to Distraction

DavidD66

The reason there is no information on what to do for Health Insurance reported on a K-1 for a more than 2% shareholder of an S-Corp is because they can't be reported on Form K-1 and deducted by the shareholder. The premium payments must be reported as wages subject to income tax on the shareholder's W-2. They are also reported in Box 14 as other information.

Shareholder premiums cannot be reported on Schedule K-1 and deducted. Shareholder premiums cannot be reported on Form 1099-MISC and deducted. Shareholder premiums cannot be unreported and deducted.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

Driven to Distraction Author

Where in the interview does the software ask about my percentage ownership for form 1120-S? I can't find/revisit the question, nor is there an opportunity to check off whether or not I paid my own health insurance premiums - is this asked somewhere else? The guidance on this topic also only seems to refer to form K-1/1065; it doesn't mention 1120 even though it is phrased as if it applies to both forms. See "Get info on the self-employed health insurance deduction for partners and LLC members"

Irene2805Answer

To enter the health insurance premiums you paid, follow these steps:

Go back into the K-1S entry portion of the interview.
You will come to a screen, Other Situations.
Mark the box I personally paid health insurance... [Screenshot #2]
Enter the premiums paid on the next screen, Self-Employed Insurance Costs. Click Continue.
On the next screen, you will have the opportunity to enter any long-term care insurance costs.
You will be brought back to the S-Corporation K-1 Summary. Click Done if you have no additional K-1s to enter.