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.
- Enter the medical insurance premiums paid in theW2screen, box 14 with code3 (Medical insurance premiums).
- SelectK-1from theForm/Schcolumn dropdown menu.
- Select the corresponding K-1 S corporation unit number from theUnitcolumn dropdown menu.noteUse theW2screen, 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.
- If the premiums were paid for insurance that qualifies for the Premium Tax Credit and the individual received Form 1095-A, follow these steps.
- Complete the1095Ascreen.
- Select the 1120S K-1 unit, and mark theApply to SE Health Insfield.
- In theW2screen, open the statement dialog for box 14, select code3 (Medical Insurance premiums).
- 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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