Jump to content
ATX Community

K1 and W2 box 12 code S adjustment?


Possi

Recommended Posts

My client receives a W2 and K1 from a partnership.

The W2 has box 12 Code S amount of $12,500.

Has this already been adjusted out of Box 1? Or do I take the adjustment for a SEP contribution on the 1040?

The difference between Box 1 and Boxes 3 and 5 is not $12,500.

Box 1 = 83,786

Boxes 3 and 5 are 90,804.

Box 12a is S 12,500.

Self employed health insurance is 5,482, reflected in Box 14. I always take the adjustment for SEHI. I hope I have not been missing the SEP or SIMPLE adjustment.

Link to comment
Share on other sites

38 minutes ago, Abby Normal said:
90,804.00 +
12,500.00 -
5,482.00 +
83,786.00 T

AHHHHHH THANKS!

 

52 minutes ago, Gail in Virginia said:

I think you are okay.  The Simple contribution comes out of box 1, but not out of box 3 and 5.  The health insurance comes out of boxes 3 and 5 but not out of box 1, because he owns more than 5%.   However, since this is a partnership, why is he getting a W2?

I'm sorry... it's an S Corp, not a partnership. I knew that. I just wrote it wrong.

 

So, I am right to adjust the SEHI, but not the SIMPLE. Whew.

  • Like 2
Link to comment
Share on other sites

37 minutes ago, Abby Normal said:

He should be getting guaranteed payments and health insurance counts as guaranteed payments. I have a partnership with a SIMPLE and we take it as a 1040 adjustment.

He does get guaranteed payments. I still adjust for the SEHI, right? I'm confused about the guaranteed payments statement. I didn't think that had anything to do with the SEHI.

  • Like 1
Link to comment
Share on other sites

1 hour ago, Possi said:

He does get guaranteed payments. I still adjust for the SEHI, right? I'm confused about the guaranteed payments statement. I didn't think that had anything to do with the SEHI.

Don't worry about the guaranteed payment statement. That was mentioned because you originally said this was a partner in a partnership that issued a W-2 and a K-1. 

Yes, your client still gets the SEHI, assuming he meets the requirements. 

  • Like 2
Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Restore formatting

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
  • Recently Browsing   0 members

    • No registered users viewing this page.
×
×
  • Create New...