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@HOPE2 wrote:

Could please help me what section exactly on K1 you meant? I scrolled up & down did not see any box related Health insurance shareholder.

Box 14 or Box 5?

2- When we take look on 1095-A , the diffrence between column A and C should be equal box 14 of W-2, I am asking just better understanding the figures, am I right?

3- When I searched here, our community, I found one said it comes with code AC on K1 and the other said, ... not on any k1's box.

1. Let ask you guys when S-Corp paid premium for shareholders the cost goes on line 18 page 1 and also shareholders should have on their W-2 which add up to wages.appreciate it.

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Right above line 1 of the K-1 worksheet is a "Quickzoom" for the health insurance.

It will ask for both the amount of insurance ($12,000) and also Medicare wages in Box 5 of the W-2.  But if there is a 1095-A, DON'T enter the cost of insurance ($12,000) there; only enter the Medicare wages.  As you said, you 'link' the 1095-A to the K-1, and that will do it. 

Box 14 of the W-2 shows the amount that the corporation paid for insurance.  In my opinion, the corporation is eligible to reimburse the full amount of premiums (column A of the 1095-A), but if did not reimburse that full amount, it should show whatever amount it actually reimbursed.  If the corporation did not reimburse the full amount of the premium, that could possibly limit the amount of the Self Employed Health Insurance deduction.

As far as I know, the insurance will not show up on the K-1.  It only shows up in Box 14 of the W-2, but it is fine (and probably a good idea) to include a supplementary statement about it if the corporation has other shareholders that are not your client.

Make sure the corporation only deducts the health insurance once.  One page 1 of the 1120-S, don't add it to both wages and for employee benefits.  Only do one of them.