This is such a great question...IMHO.  Lisa, when an S corp owner has family members who work in the business, they are treated as if they are owners for health insurance purposes.  The Company properly has added the health insurance premiums to the taxable wages.  (Not to social security or medicare) There is a notation in Box 14 Noting the Health Insurance amount included in Box 1.

ProSeries has no method to then deduct the health insurance above the line...i.e. similar to any S/E individual.   YET...this is allowed.

So...I believe that I'm going to add a K-1 with no income and no ownership...and see if I can flow it through that way. Anyone else?