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Entering health insurance premiums (W-2) for a more than 2% shareholder in Lacerte

by Intuit•1• Updated 3 months ago

This article will assist you with entering health insurance premiums (W-2) for a more than 2% shareholder in the S-Corporate and Individual modules of Lacerte.

For the S-Corporation, you can report health insurance premiums in the following places:

  • Somewhere on Form 1120-S   
  • To the shareholder on Schedule K-1, box 17, code V
  • Form W-2, box 14

Choose one of the methods below for instructions on reporting health insurance premiums.

There are 3 methods for reporting health insurance premiums on Form 1120-s.

  1. Go to Screen 2, Officer Information.
  2. For each officer, include the premiums in the Officer Compensation field.
  1. Go to Screen 15, Deductions.   
  2. Scroll to the Deductions section.
  3. Enter premiums in Insurance.
  1. Go to Screen 20, Income and Deductions.
  2. Scroll down to the Deductions section.
  3. Hold down Ctrl+E on your keyboard in the Other deductions (Ctrl+E) field.
  4. Select S=Other deductions as the K-1 Code.  
  5. Enter "Shareholder Health Insurance" as the Description.
  6. Enter the premiums.
  1. Go to Screen 36, Schedule K-1 Misc./Schedule B-1.
  2. Select the Shareholder from the left navigation menu.
  3. Enter premiums in Health insurance premium reported on W-2 for more than 2% Shareholder (code 7).
    • Use this field even when the shareholder didn't receive form W-2 from the S-corporation.

This appears on Schedule K-1, box 17 as Supplemental Information.

Lacerte doesn't generate Form W-2. Refer to this article for instructions on entering Form W-2, box 14 in Lacerte.

To generate the health insurance deduction from the W-2 for a more than 2% shareholder, follow these steps:

  1. Navigate to Screen 24, Adjustments to Income.
  2. Go to the SE Health Insurance section.
  3. In field Premiums not entered elsewhere, enter the amount from the W-2.
  4. Go to the subsection titled Net Earning [if multiple businesses].
  5. In field Form (Ctrl+T), Select Form W-2 - SCorp S/H (>2%).
  6. Use the drop down in Activity name or number and choose the correct Employer name.
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