Shouldn't a 'self-employed' individual of an S-corp have a W-2.....& the SEHI would be shown there, no?

"When I contacted Lacerte, I was told to enter the health insurance deduction in screen 20.2/ Line 12 - other deductions as "L - Deductions - portfolio (other)"

That is blatantly wrong.

@Kathi_at_Intuit 

IF the advice provided by someone at support is as reported by this O.P. you should track down that individual and have a chat.  

Blatantly wrong (as Susan said)  is an understatement

@abctax55 Thanks for the tag! We're actively looking into this and will ensure the feedback is shared directly with the relevant department. We appreciate you taking the time to highlight this. 

@TiffanyPage Let us look into this and get back with you. Before we do, we looked at the instructions for the 7203 and did not see that it said to report the SE health on line 45 of form 7203. Is this where ithe amount should be reported?

Hi,

Yes, that is where that should go.

Thank you for looking into this.

@TiffanyPage Thanks for getting back to us. We've checked on this and the instructions for Form 7203 for IND and they does not mention SE Health. When doing Jump to Input (JTI) on line 45 of Form 7203, it shows that the following will flow to that line:

Screen 20.2 (Code 2)  Unreimbursed expenses (enter as positive) [Adjust]
Screen 20.2 (Code 64) (12H) Interest expense>Passive 
Screen 20.2 (Code 15) (12J)Secion 59(e) (2) Dry hole expense 
Screen 20.2 (Code 844)   Line 12 - Other deductions Other Deductions

We would take a look at the JTI boxes and see if any of these fit for the SE Health.  

We also see that there is this Support article that might help. 

If you use any of the Box 12 lines, you will double the health insurance, so its not correct.

The process is: On the S Corp - Health Insurance of Scr 20, Other Deductions with code ZZ, then the same amount needs to go under Section 199 (Scr 27), Other Deductions to not be included in QBI, where it shows on page 2, line 45 on the 7203.

When exported into the Individual tax return, this amount does not show up on page 2, line 45 on the 7203. And, because of that Shareholder Basis does not match.

Any help would be appreciated!

Why has no one realized the W2 is the correct reporting for the shareholder-employee? Look at the W2 input.

We are not referring to the W2, we are referring to the 7203 Basis Schedule. The W2 is fine.

Shouldn't a 'self-employed' individual of an S-corp have a W-2.....& the SEHI would be shown there, no?

Someone did....  seems various folks missed my 'delicate' attempt to steer them in the right direction. 

@Kathi_at_Intuit  - SEHI doesn't go on the Form 7203.  

@AliH 

The W-2 isn't fine if SEHI is involved; the IRS is very adamant as to how SEHI is reported.

I am referring to the S-Corp module...

The issue is that the SEHI is deducted for QBI. There is a diagnostic that says: "Section 199A-The program does not include Schedule K, Other Deductions (loss) in QBI on Schdule K-1, Statement A. Use the input field "Other Deductions (loss) in the Section 199A section of the Other Schedule K items input screen to enter QBI Other Deductions )ref #53476"

When inputting the SEHI in this field it puts it on the S-Corp Form 7203, line 45, but it does not export it to the Form 7203 on the individual module, which makes basis incorrect, and there isn't a way to add this.

Any help is appreciated.