How do you enter Health Insurance for a family member of an S Corp owner that had the insurance added to their W-2? No K-1? W-2 includes premiums in Box 1.

[beriK]

Need help to get this into the Schedule 1 properly without an override.  Do you add a K-1 for the S Corp with no income?

[IRonMaN]

"Do you add a K-1 for the S Corp with no income?"

I believe that would be the route to go.

[Just-Lisa-Now-]

Why isn't there a K-1?

[IRonMaN]

Because they are a family member, not a shareholder.

[Just-Lisa-Now-]

So if therye just an employee, not a shareholder, what are they trying to do with the health insurance on Sch 1?  Theyre not self employed.

[IRonMaN]

Rules of attribution.

[beriK]

This is such a great question...IMHO.  Lisa, when an S corp owner has family members who work in the business, they are treated as if they are owners for health insurance purposes.  The Company properly has added the health insurance premiums to the taxable wages.  (Not to social security or medicare) There is a notation in Box 14 Noting the Health Insurance amount included in Box 1.

ProSeries has no method to then deduct the health insurance above the line...i.e. similar to any S/E individual.   YET...this is allowed.

So...I believe that I'm going to add a K-1 with no income and no ownership...and see if I can flow it through that way. Anyone else?

[beriK]

I'm going to try this.   PROSERIES...this is a programmable problem to be solved!

[Just-Lisa-Now-]

I don't work with SCorps much, so thankyou for this explanation! 

So any family member or only direct family members?  I mean if its a brother-in-law does he count as a relative?

[beriK]

This is what I found search family attribution rules.

From IRS " Attributions of Ownership Rules"

A member of the family includes any spouse, ancestors, children, grandchildren, great grand­children, and spouses of children, grandchild­ren, and great grandchildren.  A brother or sister of an individual is not a member of the family for this purpose.  A legally adopted child of an indi­vidual will be treated as a child by blood.