Level 4

Does at risk affect the amount of SE Health insurance that a 1065 partner can deduct?

Forum|Forum|9 months ago
September 22, 2025
2 replies
9 views

Proseries is limiting the amount of SE health insurance for a partnership because of at risk. Is this correct or should we be able to deduct it because the k1 has included the health insurance payment in guaranteed draw?

ProSeries Tax

T

TaxGuyBill

Level 15

Is it blocking due to At-Risk, or is it blocking due to a negative SE income in Box 14?

N

Nancy9Author

Level 4

at risk is blocking it

Here is the info from the 1065 k1

line 1 ordinary loss of 8000

line 4a guaranteed payments for services 70,000

line 13m med insurance 12000 (which is included in 4a)

line 14a net earnings from SE 62,000

In all I'm reading the fact that 14a was 62k I believe I should be able to deduct the 12k on schedule 1 but in order to do that I have to override the at risk worksheet to allow the 12k health insurance.

On the 6198 I entered the 12000 in the worksheet on line 6 guaranteed payments. That flowed to line 3 on the 6198 but Proseries then wanted to divvy up the allowable expenses. (between ordinary, loss, non deductible, health ins) I over-road it to only allow the Health Insurance.

Do you believe I am correct in reporting this way?

T

TaxGuyBill

Level 15

Without researching it, I agree that the At-Risk limits should not restrict the Self Employed Health Insurance deduction.

As for how to fill out the 6198, I'm not sure. I don't have the program open to see the worksheet, but my thought is the health insurance should not be flowing to line 3. But it is extremely rare that I need a 6198 (for me, when thing are limited, they are usually entirely limited by regular Basis, not At-Risk), so I am NOT fluent on it.