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Lacerte is not allocating SE Health Insurance to Reduce QBI for Partnerships

Level 2

Taxpayer has SE health insurance deduction and income comes from farming partnership. Lacerte is reducing business income for one-half of self employment tax, but it is not reducing it for the SE health insurance.

For another client, I had to force it to reducing the Sch F business income (QBI) as it wouldn't allocate to the partnership.


Any suggestions or anyone else having the same issue?

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3 Comments 3

The SE Health insurance deduction will not be taken on the individual side in Lacerte. 

The reason this deduction is not taken on the individual level is due to the fact that the SE Health Insurance Premiums should have been included in the wages amount reported for the Partnership or in the Guaranteed Payments so it is assumed it is already accounted for in the QBI calculation. 

If it was not reported already elsewhere on the K-1 you may need to override the Qualified Business Income on the K-1 Line 20 in the Qualified Business income [O] field. 

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Level 2

For Self-Employed (Sch C) or Partners who Pay health insurance out of pocket, why are these premiums not reducing QBI? 

JoAnn C
Level 2

I am having the same issues?  Did you find how to manually do this?

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