New (tax) year, new help!

Fixed Assets and UltraTax CS 2023 help is now on Help and Support. We're still moving articles, but you can find most content for the 2023 tax year there. Continue using the Help & How-To Center for tax years 2022 and older.

Question

Where do I enter medical insurance premiums amounts paid on behalf of a greater-than-two-percent shareholder-employee?

Answer

Medical insurance premiums paid on behalf of a greater-than-two-percent shareholder-employee must be reported on the shareholder-employee's Form W-2 (see IRS Notice 2008-1). In UltraTax CS, enter the medical insurance premiums paid in the W2 screen, box 14 with code 3 (Medical insurance premiums), select K-1 from the Form/Sch column drop-down menu. Next, select the corresponding K-1 S corporation unit number from the Unit column drop-down menu. UltraTax CS will automatically report the W2 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, complete the 1095A screen, select the 1120S K-1 unit, and mark the Apply to SE Health Ins field. In the W2 screen, open the statement dialog for box 14, select code 3 (Medical Insurance premiums), and then select the K-1 unit, but do not enter the amount. UltraTax CS completes the Premium Tax Credit worksheets to calculate the allowable self-employed health insurance deduction and premium tax credit.

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