David Posted May 21, 2010 Report Share Posted May 21, 2010 It doesn't seem as though the ATX program is handling partner's health insurance premiums correctly for the K-1. The orinary income reported in box 1 on the K-1 is already net of the health insurance premiums paid for the partners. The health insurance premium is also reported on line 13 M of the K-1. When the K-1 is carried to the 1040, it is allowing the health insurance premiums to be deducted on line 29. It seems as though the health insurance premium is already reduced from the partner's taxable income and from his self-employed earnings. So I don't see why another deduction should be allowed for the health insurance premiums. Usually, the program is right and I am not looking at things correctly. That may be the case in this situation but I thought I would double check to make sure. Can anyone shed some light on this for me? Thanks. Quote Link to comment Share on other sites More sharing options...
jainen Posted May 21, 2010 Report Share Posted May 21, 2010 >>The ordinary income reported in box 1 on the K-1 is already net of the health insurance premiums paid for the partners.<< It had better not be. Quote Link to comment Share on other sites More sharing options...
mcb39 Posted May 21, 2010 Report Share Posted May 21, 2010 Jainen is correct. Health Insurance Premiums are not a deductibe expense for Partnerships. They possibly could be Guaranteed Payments to Partners, subject to SE tax, though. Quote Link to comment Share on other sites More sharing options...
David Posted May 21, 2010 Author Report Share Posted May 21, 2010 OK, I see the problem. When the health insurance premiums are entered on line 10 as guaranteed payments (line 2 of the input screen)this amount is not carried to box 4 of the K-1. However, it is carried to box 13, code M of the K-1. I wonder why the ATX program carries it to box 13 but not to box 4. Is this a program fluke that made it all the way through tax season? Thanks. Jainen is correct. Health Insurance Premiums are not a deductibe expense for Partnerships. They possibly could be Guaranteed Payments to Partners, subject to SE tax, though. Quote Link to comment Share on other sites More sharing options...
jainen Posted May 22, 2010 Report Share Posted May 22, 2010 >>this amount is not carried to box 4 of the K-1<< Because it's not subject to SE tax? Quote Link to comment Share on other sites More sharing options...
MontanaEA Posted May 24, 2010 Report Share Posted May 24, 2010 It's carrying the SE medical ins premiums to both lines 4 & 13 on my sch K's. Quote Link to comment Share on other sites More sharing options...
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