I have a greater than 2% shareholder that failed to include health insurance in box 1. I reminded their bookkeeper in December and she still failed to do it. Uhh.
Anyway, figured we could just quickly amend it but then when I went to amend I got tripped up on the state aspect. The shareholder is a NY resident so technically the box 1 wages for fed should match NY wages so both should be revised. Does this impact the various NY taxes? I could look into all this but dang I don't have time to and client is fee sensitive.
I've seen other CPAs include the SEHI as other income not subject SE on page 1 of form 1040 and then take SEHI. I know this isn't technically correct which is why I don't want to do it that way but maybe that is what is best and report properly next year? Thoughts?