K1 and W2 box 12 code S adjustment?

[Possi]

My client receives a W2 and K1 from a partnership.

The W2 has box 12 Code S amount of $12,500.

Has this already been adjusted out of Box 1? Or do I take the adjustment for a SEP contribution on the 1040?

The difference between Box 1 and Boxes 3 and 5 is not $12,500.

Box 1 = 83,786

Boxes 3 and 5 are 90,804.

Box 12a is S 12,500.

Self employed health insurance is 5,482, reflected in Box 14. I always take the adjustment for SEHI. I hope I have not been missing the SEP or SIMPLE adjustment.

[Gail in Virginia]

I think you are okay.  The Simple contribution comes out of box 1, but not out of box 3 and 5.  The health insurance comes out of boxes 3 and 5 but not out of box 1, because he owns more than 5%.   However, since this is a partnership, why is he getting a W2?

[Abby Normal]

90,804.00	+
12,500.00	-
5,482.00	+
83,786.00	T

[Abby Normal]

He should be getting guaranteed payments and health insurance counts as guaranteed payments. I have a partnership with a SIMPLE and we take it as a 1040 adjustment.

[Possi]

38 minutes ago, Abby Normal said:

90,804.00	+
12,500.00	-
5,482.00	+
83,786.00	T

AHHHHHH THANKS!

 

52 minutes ago, Gail in Virginia said:

I think you are okay.  The Simple contribution comes out of box 1, but not out of box 3 and 5.  The health insurance comes out of boxes 3 and 5 but not out of box 1, because he owns more than 5%.   However, since this is a partnership, why is he getting a W2?

I'm sorry... it's an S Corp, not a partnership. I knew that. I just wrote it wrong.

 

So, I am right to adjust the SEHI, but not the SIMPLE. Whew.

[Possi]

37 minutes ago, Abby Normal said:

He should be getting guaranteed payments and health insurance counts as guaranteed payments. I have a partnership with a SIMPLE and we take it as a 1040 adjustment.

He does get guaranteed payments. I still adjust for the SEHI, right? I'm confused about the guaranteed payments statement. I didn't think that had anything to do with the SEHI.

[jklcpa]

1 hour ago, Possi said:

He does get guaranteed payments. I still adjust for the SEHI, right? I'm confused about the guaranteed payments statement. I didn't think that had anything to do with the SEHI.

Don't worry about the guaranteed payment statement. That was mentioned because you originally said this was a partner in a partnership that issued a W-2 and a K-1. 

Yes, your client still gets the SEHI, assuming he meets the requirements.