QBI and Self-Employed Health Insurance Deduction

[PSeagroves]

I have a shareholder in an S corporation and I cannot figure out how enter the self-employed health insurance (that was properly included in shareholder's W2) so it reduces the qualified business income of the related S corporation.

[PSeagroves]

I think I answered my own question.  It shouldn't reduce QBI because QBI is already reduced by the self-employed health insurance as the S corp is treating as wages.

[IntuitCharlene]

Great find! The K-1's would not deduct SE Health Insurance from QBI because in both cases it should already have been taken into account on the business side. Through the 1065 its typically in the Guaranteed Payments already. If it wasn't taken on the business side then a manual adjustment would be needed on the Individual Side to reduce the QBI. 

[Storchon]

Where can I make a manual entry to QBI so partnership QBI is reduced by the self employed health insurance.  The partnership is not deducting the health insurance as a guaranteed payment.

Thank you!

[JoAnn C]

Did you find how to manually adjust the SE health insurance against the partnership QBI?  I have a partnership K1 and there is no guaranteed payment.  The SE health insurance needs to be deducted in the QBI calculation.  Is there a way to manually do this?

[WilliamP]

With respect to an S-Corp, the medical insurance deduction does not reduce QBI, because 1) the medical insurance is an offset to the amount included in the shareholders wages and 2) the medical insurance has reduced QBI as a deductible fringe benefit.   With respect to a Self Employed and Partner, the medical insurance is a reduction of QBI.