Self-employment health insurance deduction for S-Corp -
I have a client with an S-Corp; husband and wife are shareholders, set up as 100%, not separate. I'm trying to enter the self-employment health insurance deduction but Lacerte will only calculate half of the health insurance paid; it was included on the W-2. The husband is the only one that receives a W-2. How do I enter it in full without overriding the program?
You don't have one shareholder. You have two shareholders. You wouldn't put you and me on one K-1, right? So don't put them and them on one K-1.
That said, I can't recreate your problem.
Husband got a W-2. 100% of the health insurance premiums were included in Box 1, but not 3 or 5. K-1 coded joint. Amount of premiums in his column in adjustments screen. I get a 100% deduction.
If only half of the premiums were included on his W-2, and the other half went somewhere weird like her K-1, there's no SE health insurance deduction for hers, because she had no Medicare wages constituting deemed SE income.
The prior CPA put them as joint shareholders on one K1. I assume that I could put them at 50% each and separate.
Husband received a W-2 with 100% health insurance premium included on his W-2. Shouldn't I be able to deduct in full? Especially if I separate.
Thanks.
Like I said, I can't reproduce that - I get the full deduction. His Box 5 wages exceed the total premium amount, right?
And you're getting exactly half the deduction?
I'd try live chat with tech support. There's got to be an erroneous entry somewhere, and other than to say "the ones I described above work fine for me," I've got no way to track it down.
Thanks for your help. I called the client to confirm percentage. It turns out they changed their percentages for veteran owned reasons recently. I'm changing the S-Corp return and the personal return. You gotta love it sometimes!
Thanks again.
