S Corp Health Insurance Deduction

Forum|Forum|6 months ago
December 15, 2025
2 replies
17 views

Hi everyone,

The client has a Form 1095-A, which I linked to the S-corporation K-1. In the K-1, I entered the Medicare wages. However, the amount showing on Schedule 1 is different from the difference between Box 1 and Box 3 on the W-2, which represents the health insurance premiums paid by the S-corporation.

Additionally, the client has an excess advance Premium Tax Credit (PTC).

I could not find any worksheet showing all the calculations that explain how the number at the very bottom of Form 7206 is calculated.

Thanks for help

ProSeries Professional

T

Terry53029

Intuit Community Champion

The final number is the amount of premiums paid by S-Corp or your client, as long as the premiums were on the W2 (should be on 1095A)

T

TaxGuyBill

Level 15

@HOPE2 wrote:

However, the amount showing on Schedule 1 is different from the difference between Box 1 and Box 3 on the W-2, which represents the health insurance premiums paid by the S-corporation.

Additionally, the client has an excess advance Premium Tax Credit (PTC).

Is the amount on Schedule 1 higher, or is it lower, than the amount that the corporation paid?

HOPE2Author

Level 7

Thanks, premium is $7032 (for box-1 of W-2) but Sch1's number is $10781, higher. I tried to find this number $10781 and this is what I found:

Column A on 1095-A is : $20461

Column C ....................: $10260

excess 8962 $581

20461-10260+581= 10782

T

TaxGuyBill

Level 15

@HOPE2 wrote:

Thanks, premium is $7032 (for box-1 of W-2)

Column A on 1095-A is : $20461

Column C ....................: $10260

excess 8962 $581

20461-10260+581= 10782

Your numbers from the 8962 are what is usually correct. However, the corporation only paid $7032, so your maximum deduction is $7032.

Because of this situation, it might be easiest to NOT link the 1095-A to the S-corporation, then on the medical spot on the K-1 just enter $7032.

As a side note, unless the corporation objects (such as multiple shareholders and they don't want to pay that much to one shareholder), it is my belief that the corporation should be reimbursing the FULL amount of health insurance ($20,461 in your case).

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