Can some explain how/why one would reduce QBI of an S Corp on the shareholder's personal return by the amount of SE above the line Health Ins Deduction?
Its already been subtracted to arrive at the S Corp's profit; to subtract it again seems weird?
Lacerte has an obscure box to check to accomplish this, but offers no explanation.
Q 33: ….. If I take the self-employed health insurance deduction for these premiums on my individual tax return, do I have to also include this deduction when calculating my QBI from the S-Corporation?
A33. Generally, the self-employed health insurance deduction under section 162(l) is considered attributable to a trade or business for purposes of section 199A and will be a deduction in determining QBI. This may result in QBI being reduced at both the entity and the shareholder level.