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

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.

Table of contents:

Reporting health insurance premiums on Form 1120-S

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

Reporting on Form 1120-S, line 7 - Compensation of officers

1. Go to Screen 2, Officer Information.
2. For each officer, include the premiums in the Officer Compensation field.

Reporting on Form 1120-S, line 19 - Other deductions

1. Go to Screen 15, Deductions.   
2. Scroll to the Deductions section.
3. Enter premiums in Insurance.

Reporting on Form 1120-S, line 12a - Other deductions

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.

Back to Table of Contents

Reporting health insurance premiums on Schedule K-1, box 17, code V

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.

Back to Table of Contents

Reporting health insurance premiums on Form W-2, box 14

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

Back to Table of Contents

Entering health insurance premiums in the individual return

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.

Back to Table of Contents