A client received a Schedule K-1 for an S Corp for which he is a more than 2% shareholder. He is also an employee of this company. He indicated to me that the medical insurance premiums paid for his coverage are not included in his W2 income. However, in the additional information it states "medical insurance premiums for more than 2% shareholders" is $9k.

My understanding is that this is an above the line deduction for self-employed taxpayers if it is included in box 1 of his W2. Again, he is said it is NOT included on his W2.

My question is if this is not included in W2 income and therefore, not deductible to him, then why would the person preparing the S Corp return even include this in the additional information? Am I missing something here?