Possi Posted February 21, 2018 Report Share Posted February 21, 2018 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. Quote Link to comment Share on other sites More sharing options...
Gail in Virginia Posted February 21, 2018 Report Share Posted February 21, 2018 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? 2 Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted February 21, 2018 Report Share Posted February 21, 2018 90,804.00 + 12,500.00 - 5,482.00 + 83,786.00 T Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted February 21, 2018 Report Share Posted February 21, 2018 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. 1 Quote Link to comment Share on other sites More sharing options...
Possi Posted February 21, 2018 Author Report Share Posted February 21, 2018 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. 2 Quote Link to comment Share on other sites More sharing options...
Possi Posted February 21, 2018 Author Report Share Posted February 21, 2018 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. 1 Quote Link to comment Share on other sites More sharing options...
jklcpa Posted February 21, 2018 Report Share Posted February 21, 2018 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. 2 Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.