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Enter medical insurance premiums paid on behalf of a greater-than-two-percent shareholder

Medical insurance premiums paid on behalf of a greater-than-2-percent shareholder-employee must be reported on the shareholder-employee's Form W-2 (see IRS Notice 2008-1). To do so follow the steps below.
  1. Enter the medical insurance premiums paid in the
    W2
     screen, box 14 with code
    3 (Medical insurance premiums)
    .
  2. Select
    K-1
     from the
    Form/Sch
     column dropdown menu.
  3. Select the corresponding K-1 S corporation unit number from the
    Unit
     column dropdown menu.
    note
    Use the
    W2
     screen, box 14, codes 48-54 (as applicable) to identify long-term care premiums on behalf of the shareholder employee. The application automatically reports these premiums (after limitation) on the Self-Employed Health Insurance Deduction Worksheet, line 2.
    The application will automatically report the W-2 box 14 medical insurance premiums on line 1 of the Self-Employed Health Insurance Deduction Worksheet.
  4. If the premiums were paid for insurance that qualifies for the Premium Tax Credit and the individual received Form 1095-A, follow these steps.
  5. Complete the
    1095A
     screen.
  6. Select the 1120S K-1 unit, and mark the
    Apply to SE Health Ins
     field.
  7. In the
    W2
     screen, open the statement dialog for box 14, select code
    3 (Medical Insurance premiums)
    .
  8. Select the K-1 unit, but don't enter the amount.
    The application completes the Premium Tax Credit worksheets to calculate the allowable self-employed health insurance deduction and premium tax credit.

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