(1040) Entering Self Employed Health Insurance to calculate Qualified Business Income Deduction (8995)

[richie]

First of all - it's my understanding that self employed health insurance reduces the QBI Deduction (2022 line 13 - 1040).  

If I'm correct, then I need help determining where I enter the health insurance amount (which I assume is on Form 8995).

Thank you for your help.

Richard

[TaxGuyBill]

The program should be doing it automatically.

Is this Schedule C?  If so, keep scrolling down on the Schedule C worksheet, and there is a QBI section, including adjustments such as SE insurance.

[richie]

Thank you TaxGuyBill,

It's not a schedule C - he's is a more than 10% shareholder in an S-Corp.  It would seem to me I need to enter it on Form 8995 (my understanding it is supposed to reduce the Qualified Business Income Deduction (line 13).  Do you need any other information?  Thanks again for responding to my question.

Richard

[TaxGuyBill]

There is a QBI worksheet on the K-1 worksheet.

After playing with it for a while, I think you enter the toal QBI income on section D1, then you can enter the deductions (such as SEHI) on D2, section E, line 5.

If I remember correctly, although I think the IRS said SEHI for an S-corp is taken out of QBI, many people feel that logically that is incorrect.  But it's been a while, so my memory is a bit hazy on the subject.

[richie]

Thank you again TaxGuyBill,

I'll try that.  I appreciate your help.

Richard

[richie]

Hey TaxGuyBill,

Thanks again for your help - an update - I followed your suggestions and they were absolutely correct!!  

Richard

[sulchekmoore]

Thank you for your reference to the feed, but:

The Proseries Partnership K-1 QBI worksheet does not have an input line 5 for health insurance specifically like there is on the Sch C QBI worksheet.  I know I can force it on one of the adjustment lines, but why is Proseries not automatically carrying it over, or at least giving us an "unsupported Calculation" note?

It was the same in 2021, so I don't think any changes are coming with the 2-16-23 update.  Usually I find Proseries knows something that I don't when it comes to things like this...but I can find no outside confirmation. 😞

Cindy