self employed health insurance deduction

[Taxlady4]

Where do I enter self employed health insurance deduction that is due to the attribution rules.  Taxpayer is not a shareholder.  Only has a W2, but is a related party.

[qbteachmt]

Can you give more details? Attribution of Health Insurance cost, or Income from SE activity, or Both? Or, from Marketplace coverage? W2 employer means there is coverage available through that employer; the person is not on that plan? How does "related party" apply to the situation? Which form/schedule(s) are you working with?

[sjrcpa]

I think OP is saying his client is a family member of a more than 2% shareholder in an S Corp. Therefore his client's health insurance premiums are properly included in their W-2.

[qbteachmt]

"is a family member of a more than 2% shareholder in an S Corp"

Okay, so indirect ownership attribution. We would still need more info, such as:

"The above-the-line deduction is not available if the 2% shareholder or spouse is eligible to participate in any subsidized health care plan."

You want to read Form 1040 instructions for Schedule 1 Line 17:

https://www.irs.gov/pub/irs-pdf/i1040gi.pdf

[TaxGuyBill · Accepted solution]

Borrow a copy of the K-1 from the related party.

Enter the K-1, but enter zeros for all of the numbered boxes.

Enter the health (and Box 5 of the W-2) insurance on the K-1 worksheet.

[Taxlady4]

Thanks!