Partnership health insurance

[David]

It doesn't seem as though the ATX program is handling partner's health insurance premiums correctly for the K-1. The orinary income reported in box 1 on the K-1 is already net of the health insurance premiums paid for the partners. The health insurance premium is also reported on line 13 M of the K-1. When the K-1 is carried to the 1040, it is allowing the health insurance premiums to be deducted on line 29.

It seems as though the health insurance premium is already reduced from the partner's taxable income and from his self-employed earnings. So I don't see why another deduction should be allowed for the health insurance premiums.

Usually, the program is right and I am not looking at things correctly. That may be the case in this situation but I thought I would double check to make sure.

Can anyone shed some light on this for me?

Thanks.

[jainen]

>>The ordinary income reported in box 1 on the K-1 is already net of the health insurance premiums paid for the partners.<<

It had better not be.

[mcb39]

Jainen is correct. Health Insurance Premiums are not a deductibe expense for Partnerships. They possibly could be Guaranteed Payments to Partners, subject to SE tax, though.

[David]

OK, I see the problem. When the health insurance premiums are entered on line 10 as guaranteed payments (line 2 of the input screen)this amount is not carried to box 4 of the K-1. However, it is carried to box 13, code M of the K-1.

I wonder why the ATX program carries it to box 13 but not to box 4. Is this a program fluke that made it all the way through tax season?

Thanks.

Jainen is correct. Health Insurance Premiums are not a deductibe expense for Partnerships. They possibly could be Guaranteed Payments to Partners, subject to SE tax, though.

[jainen]

>>this amount is not carried to box 4 of the K-1<<

Because it's not subject to SE tax?

[MontanaEA]

It's carrying the SE medical ins premiums to both lines 4 & 13 on my sch K's.