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11106: 1120S - Officer Life Insurance


1120S S corporation

Where do I enter life insurance premiums for officers? 

Data entry for officer life insurance premiums depends on whether or not the S corporation is the policy owner/beneficiary.

If the S corporation is not the owner of the policy nor a beneficiary:

  • the premiums paid are entered on the DED screen, line 12 as other deductions.
    • The amount of insurance is then automatically included in the Schedule M2 Line 2 for Column A (AAA) as ordinary income (or on line 4 if the corporation has a loss for the year).
    • No adjustment is necessary on the M2 for other reductions.
    • Wks M2 is in balance.

If the S corporation is the owner of the policy and a beneficiary,

  • the amount is entered on the bottom of screen K > AMT and Basis tab > line 16c Officer Life insurance premiums.
    • Entries here carry to Schedule K Line 16C, Schedule M1 Line 3B, and Schedule M2 Line 5 Column D* other adjustments account (OAA).
    • No other entries or adjustments are necessary.
    • Wks M2 is in balance.

 

*Column B in Drake17 and prior.


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