Drake Tax - 1120-S: Officer Life Insurance
Article #: 11106
Last Updated: October 21, 2024
Where to 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:
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the premiums paid are entered on the DED screen, line 12 as other deductions.
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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).
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No adjustment is necessary on the M2 for other reductions.
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Wks M2 is in balance.
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If the S corporation is the owner of the policy and a beneficiary,
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the amount is entered on the bottom of screen K > AMT and Basis tab > line 16c Officer Life insurance premiums.
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Entries here carry to Schedule K Line 16C, Schedule M1 Line 3B, and Schedule M2 Line 5 Column D* other adjustments account (OAA).
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No other entries or adjustments are necessary.
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Wks M2 is in balance.
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