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Turbotax s corp12/13/2023 ![]() Separated from the individual under a decree of divorce or separate maintenance), and Sectionģ18(a)(1) provides that an individual shall be considered as owning the stock owned,ĭirectly or indirectly, by or for (i) his spouse (other than a spouse who is legally Total combined voting power of all stock of such corporation. Outstanding stock of such corporation or stock possessing more than 2 percent of the Is any person who owns (or is considered as owning within the meaning of § 318) onĪny day during the taxable year of the S corporation more than 2 percent of the For purposes of § 1372, the term “2-percent shareholder” Partnership, and any 2-percent shareholder of the S corporation shall be treated as a Section 1372(a) provides that, for purposes of applying the income tax provisions of theĬode relating to employee fringe benefits, an S corporation shall be treated as a Group health plan are included in the family member’s gross income. Health plan for all employees, and the amounts paid by the S corporation under such The attribution of ownership rules under § 318. The family member is considered to be a 2-percent shareholder pursuant to Individual otherwise meets the requirements of § 162(l).Īn individual who is a 2-percent shareholder of an S corporation pursuant to theĪttribution of ownership rules under § 318 is entitled to the deduction under § 162(l) forĪmounts that are paid by the S corporation under a group health plan for all employeesĪnd included in the individual’s gross income, if the individual otherwise meets theĪn individual owns 100% of an S corporation, which employs the individual’s family Group health plan for all employees and included in the individual’s gross income, if the To the deduction under § 162(l) for amounts that are paid by the S corporation under a The attribution of ownership rules under § 318 of the Internal Revenue Code is entitled ![]() Whether an individual who is a 2-percent shareholder of an S corporation pursuant to This Chief Counsel Advice responds to your request for assistance. Subject: Health Insurance Costs of Employee Family Members of 2-Percent Shareholders Here are the screens you look for to enter your self-employed health insurance amounts:ĭeputy Associate Chief Counsel (Employee Benefits) To find the place to enter or edit your K-1, click the "magnifying glass Search" icon on the top row, enter " k-1" in the search window and press return or enter, and then click on the " Jump to k-1" link to begin entry of the Schedule K-1 you “received” from your S corp. If the S Corp did not "cut the check" for the health insurance, it is supposed to reimburse you for the payments you made from your personal funds in order for you to qualify for the self-employed health insurance deduction. Note that your S Corp deducts your health insurance paid as wages. The W-2 will not report box 3 or box 5 wages for the health insurance premiums, however, because this compensation is not subject to payroll taxes. Note that if you meet the test for a "more than 2% shareholder" (including the spouse of a more than 2% shareholder), you should receive a W-2 from the S Corp that includes in box 1 wages your portion of health insurance premiums and that same amount in box 14 of the W-2. Otherwise, when you enter your W-2 box 5 wages in that box and the amount of health insurance reported on your W-2 in the next box, your self-employed health insurance deduction should calculate correctly. ![]() If you got your insurance from the Marketplace, don't enter the medical insurance premiums, they are already in TurboTax from your 1095-A entry. When you check that box, on the next screen you will get a box to enter your Medicare Wages (box 5 of your W-2) from This S Corporation. On that screen, your check the " I personally paid health insurance." question. As you enter your K-1 from the S corp into your individual TurboTax, you will encounter the " Other Situations" screen.
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