Partner Contributions for Wife Health Insurance Premiums

[peauff]

Customer is a husband and wife partnership return, where the husband paid additional premiums (not reimbursed by the partnership) to cover his wife's health insurance.  Would this add partnership basis to the husband, and would he also be able to report these payments as UPE?

[qbteachmt]

It's part of the same amount paid for his coverage and treated the same. It's self-employment health insurance expense, unless she is an employee and you are trying to make this Employee Benefit?

Here is the help article:

https://proconnect.intuit.com/community/individual/help/generating-se-health-insurance-deduction-for...

And:

https://ttlc.intuit.com/community/adjusted-gross-income/help/get-info-on-the-self-employed-health-in...

[peauff]

So if the husband is a W-2 employee and has premiums deducted for both his and his wife's health insurance, and both the husband and wife are partners in a multi member LLC Partnership (wife is not also a w-2 employee), these premiums can be deducted as health insurance on their 1040?  

[qbteachmt]

"So if the husband is a W-2 employee"

Let's stop at this part: A Partner paying themselves for their LLC work through payroll is making a mistake. There is no Payroll for the partners.

"both the husband and wife are partners in a multi member LLC Partnership (wife is not also a w-2 employee)"

Good, because if she is a partner, she is not an employee.

Are you sure this is not an LLC elected to be treated as an S Corp?

[peauff]

Sorry for the confusion.  The husband is a w-2 employee at another company and is also a partner in the H&W LLC

[qbteachmt · Accepted solution]

That means this person is covered by an Employer plan.

"The partner cannot deduct the premiums for any calendar month, or part of a month, in which the partner is eligible to participate in any subsidized health plan maintained by any employer of the partner, the partner’s spouse, the partner’s dependents, or any children under age 27 who are not dependents. For more information on the self-employed health insurance deduction, see chapter 6 in Publication 535."

https://kb.drakesoftware.com/Site/Browse/10109/1065-Entering-Payments-for-Partner-Health-Insurance

There typically is a qualification for "who" establishes the plan, if the premiums are paid pre-tax, reimbursed, paid directly by the entity, etc.

Every difference matters.

[peauff]

Perfect. tx