Intuit HelpIntuit

Entering S corporation officer health insurance not reported on W-2 in ProConnect Tax

by Intuit•2• Updated 4 months ago

Intuit ProConnect doesn't have a specific input field for Officer health insurance that wasn't reported on a W-2 in the S-Corporate module, as it could be handled two different ways.

Enter as a deduction on the Form 1120S, page 1, on either line 8 or line 9

Per the 1120S form instructions for line 8:

"Include fringe benefit expenditures made on behalf of officers and employees owning more than 2% of the corporation's stock. Also report these fringe benefits as wages in box 1 of Form W-2. Do not include amounts paid or incurred for fringe benefits of officers and employees owning 2% or less of the corporation's stock. These amounts are reported on line 18. See the instructions for that line for information on the types of expenditures that are treated as fringe benefits and for the stock ownership rules."

To enter the Officer health insurance on Form 1120S, line 8, for Officers owning more than 2% of the corporation's stock:

Go to the Input Return tab.
From the left of the screen, select Ordinary Income and choose Deductions.
Scroll down to the Salaries and Wages subsection.
Enter the amount in Salaries and wages.

Enter the Officer health insurance on Form 1120S line 18 for Officers owning 2% or less of the corporation's stock:

Go to the Input Return tab.
From the left of the screen, select Ordinary Income and choose Deductions.
Enter the amount in Employee benefit programs.

The health insurance could be entered on the Schedule K-1, box 17 and an adjustment for Expenses on books not on Schedule K entered on the Schedule M-1.

To enter the Officer health insurance on the Schedule K-1, box 17:

Go to the Input Return tab.
From the left of the screen, select Schedule K-1 and choose Schedule K-1 Overrides.
Select the applicable shareholder name using the tabs at the top of the screen.
From the top of the screen, select AMT & Other Info.
Scroll down to the Other Information section.
Click in the Other information (Click on button to expand) field.
Select AD = Other information from the K-1 code (Click on arrow to select) dropdown list.
Repeat steps 3-7 for each affected shareholder.

To enter the Schedule M-1 adjustment:

Go to the Input Return tab.
From the left of the screen, select Balance Sheet, M-1, M-2, M-3 and choose Schedule M-1, M-3.
Select Schedule M-1.
Scroll down to the Expenses Recorded on Books Not Included on Schedule K (+) section.
Open either of the applicable fields:
- The Other (Click on button to expand) field under Nondeductible Expenses subsection, OR
- The Other (Click on button to expand) under the Other subsection
Enter a Description and the total amount of Officer health insurance.

ProConnect Tax Online