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Entering and allocating partner health insurance in Lacerte

by Lacerte Tax 2023 Updated 5 months ago

Before you start:

Per IRS instructions, partners health insurance must be included in guaranteed payments. To enter those amounts, follow these steps:

  1. Go to Screen 13, Deductions.
  2. Scroll to Guaranteed Payments (including partner health insurance).
  3. Enter the respective amounts in the two fields provided for all partners in Trade or Business.
    • For additional information, see here.

To enter partner health insurance:

  1. Go to Screen 13, Deductions.
  2. Select Deductions in the section list.
  3. Scroll to, and select the Enter Partner Health Insurance button.
  4. Go to the Partner health insurance field, and enter the total paid by the partnership for the tax year, for medical care for a partner, a partner's spouse, or a partner's dependents.
    • The amount paid by the partnership for the partner's health insurance is deducted from the total guaranteed payments for the M-1 adjustment on Line 3.
    • Lacerte assumes that partner health insurance is allocated to the partners based on the profit sharing percentage (entered in Screen 8, Partner Percentage). If this is incorrect, then it must be specially allocated.
  1. Go to Screen 29, Special Allocations.
  2. Select Deductions in the section list, then Other Deductions and Partner's Health Insurance.
  3. Enter the Allocation Amount or Allocation % for the partner(s) to receive the amounts.
  1. Make sure the amounts and allocations are correct on the Schedule K-1, Line 13 with a code M, amounts paid for medical insurance.

Related topics

Lacerte Tax

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