member health insurance in llc

Lacerte : 2008

There are several members in this LLC, but only one receives health insurance. The insurance premium is incorrectly allocated in Screen 4 as "Guaranteed Payments" to each member, even though this has been only posted to the one member receiving it in screen 29 "Special Allocations". It is not allocated with a code L, but code M on line 13 of the K-1. The premium should be allocated as income subject to SET and not as a Guaranteed Payment nor misallocated to EVERY partner - just one! HELP!

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annms45

New Member

07/06/09 7:03pm PDT

The steps I take to enter the health insurance premiums as guaranteed payments, which is exactly what they are and how they should be entered, is to start on "screen 22" . Partway down the page is an entry for "Partner Health Insurance". You enter the total amount here and then go to "screen 29" , special allocations, to assign the total amount to the one member that will pay social security tax on this premium when it flows through to his personal return.

With these two screen entries, you will see the total amount on Page 4 of the 1065 and on the K-1 line 13, for the specific member you identified with a code M.

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PhoebeRoberts

Accountant Community AllStar

07/06/09 8:21pm PDT

I agree.

You may also have to specially allocate it for the state.

If I wanted phone calls, my phone number would be in my profile. If you have a question, post it in the applicable forum.

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Accountant Man

Accountant Community AllStar

07/06/09 8:29pm PDT

Latest post

On page one of the 1065 there is a deduction line for guaranteed pmts. Then it is deducted and everyone gets a share of the deduction(lower income). Then on Sch K, the summary of income and expenses, is the guar pmt, which must be specially alloacted to the one and only member.

If you use Pro Series Basic I might not be able to help you. If you use Turbo Tax I might refuse to help you. All others, watch out! ;-)

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