My health insurance premiums are not shown as a business expense in turbotax

Forum|Forum|1 year ago
February 15, 2025
2 replies
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I input all of my business expenses in Turbotax including health insurance premiums. It seems excluded from my business expenses. Will is show up in a different part of the process?

Vanessa A

Self-Employed health Insurance premiums are not included on your return as a business expense. Instead, they are shown as an above the line deduction on Schedule 1 line 17 and then entered on line 8 as a sum total of all income and adjustments on your form 1040 line 8.

Just remember, the Self-Employed Health Insurance deduction is limited to your earnings. Meaning, you cannot deduct more than you earned.

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JTM_56

Hi. This is for 2024 1120S Taxes. Our Group Insurance consists of Health, Dental and Life. I understand that the health insurance premiums are added to Owner salaries >2% and shown on their K1. The Dental Insurance was left as a company expense, but the "Life Insurance" has disappeared and is not shown on the K1 or as an expense against the company. Can you explain this please?

KristinaK

Employee

If we are talking about medical insurance and life insurance for more than 2% shareholders of an S Corp, then please see the details below. The situation differs for non-shareholder insurances.

Medical Insurance (Health and Dental) must be included in the shareholders' wages and reported on their W-2. Then, it is claimed as the above-the-line deduction on the shareholder's individual tax return.
It is not reported on Schedule K-1 directly. Only as an expense that will be incorporated into the net income, which will show up in box 1 of the Schedule K-1.
Life insurance for a shareholder is not a deductible expense. So, you will not see it as part of the other expenses. However, it needs to be reported on Schedule M-1, line 3b, so that the Accumulated Adjustments Account (AAA) reflects the correct information.

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DoninGA

Employee

The health insurance premiums will be entered on Schedule 1 Line 17. The totals from Schedule 1 Part II Line 26 flows to Form 1040 Line 10 as an Adjustment to Income.