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Entering S Corporation Officer Health Insurance Not Report on W-2

SOLVEDby IntuitLacerte Tax46Updated August 19, 2021

Entering Officer Health Insurance that was not reported on a W-2 in the S Corporation module?

Lacerte does not have a specific input field for Officer Health Insurance not reported on a W-2 as it could be handled two different ways.

Per the 1120S form instructions for line 8,

Include fringe benefit expenditures made on behalf of officers and employees owning more than 2% of the corporation's stock. Also report these fringe benefits as wages in box 1 of Form W-2. Do not include amounts paid or incurred for fringe benefits of officers and employees owning 2% or less of the corporation's stock. These amounts are reported on line 18. See the instructions for that line for information on the types of expenditures that are treated as fringe benefits and for the stock ownership rules.

To enter the Officer health insurance on Form 1120S line 8 for Officers owning more than 2% of the corporations's stock:

  1. Go to Screen 15, Ordinary Deductions.
  2. Enter/include the amount in Salaries and wages.
  1. Go to Screen 15, Ordinary Deductions.
  2. Enter/include the amount in Employee benefit programs.

The health insurance could be entered on the Schedule K-1, box 17 and an adjustment for Expenses on books not on Schedule K entered on the Schedule M-1.

To enter the Officer Health Insurance on the Schedule K-1, box 17:

  1. Go go Screen 33, Schedule K-1 Overrides.
  2. Select the affected Shareholder name at the top of the left hand column.
  3. Scroll to the section Other Information.
  4. Open the field Other Information (Ctrl+E) and enter K-1 code AD, a description, and the health insurance amount for the selected shareholder.
  5. Repeat steps 2-4 for each affected Shareholder.

To enter the Schedule M-1 adjustment:

  1. Go to Screen 31.1, Schedule M-1.
  2. Scroll to the section Expenses Recorded on Books Not Included on Schedule K (+).
  3. Open either the Other (Ctrl+E) field under the Nondeductible Expenses subsection or the Other subsection and enter a description and the total amount of Officer health insurance.

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