S Corp Health Insurance Deduction

Forum|Forum|5 years ago
September 12, 2021
10 replies
87 views

Why is Pro Series not allowing an S Corp shareholder health insurance correctly reported on W-2 to flow to 1040 as a deduction when shareholder also receives a form 1095-A (with no premium tax Credit?)
What is the way around is if any? If not, what should I suggest to do the next year to avoid this issue and being able to take the health insurance deduction?

ProSeries Professional

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Best answer by TaxGuyBill

Enter the 1095-A and link it to the corporation.

On the K-1 worksheet, DON'T enter the cost of health insurance, BUT you NEED to enter Medicare Wages. That SHOULD trigger the 1095-A (that you already linked to the corporation) to give the Self Employed Health Insurance deduction.

Just-Lisa-Now-

Intuit Community Champion

Youve scrolled to the bottom of the 1095A form and linked it to the K-1?

(I dont have any of these clients, but just wanted to make sure it wasnt a missed data entry field)

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

M

MarinaEAAuthor

Level 5

Yes, I did.

I believe, there is some IRS rule not allowing this. Trying to get more information and how to avoid this next time.

T

TaxGuyBill

On the K-1 worksheet, there is a section about health insurance. Because of the 1095-A you DON'T enter the cost of insurance there, but you DO need to enter the Medicare Wages (Box 5 of the W-2) in that section of the K-1 worksheet. Did you do that?

M

MarinaEAAuthor

Level 5

OK, I see the SE health insurance deduction worksheet I can link to the K1 and the medicare wages you are referring to. So you are saying do not link 1095A to the S Corp but enter the amount there, correct? Or do not include 1095A at all?

T

TaxGuyBillAnswer

Enter the 1095-A and link it to the corporation.

On the K-1 worksheet, DON'T enter the cost of health insurance, BUT you NEED to enter Medicare Wages. That SHOULD trigger the 1095-A (that you already linked to the corporation) to give the Self Employed Health Insurance deduction.

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