I agree that this is clear as mud.  The IRS did issue final regulations in TD9847 in Reg. Sec. 199A-3(b)(1)(vi) that says the double dip happens for the more than 2% shareholder health insurance. However, many people feel the reg is wrong. From what I've read, if you don't agree that the QBI is reduced both at the entity level and then again at the individual level, you would need to disclose on the return.

I think so many people are confused about this. I wish IRS would issue relief. For what it's worth, Bradford Tax has an online article about this and I pasted the link below:

https://bradfordandcompany.com/wp-content/uploads/2020/11/199AFAQ.pdf