There are three components for entering guaranteed payments and health insurance in a Partnership 1065 return.

Component 1: Entering guaranteed payments to flow to Form 1065, Page 1, which includes the health insurance:

1. Go to Interview Form A-3 - Deductions.
2. In Box 36 - Guaranteed payments to partners, enter the amount including health insurance premiums to partners.
3. Calculate the return.

Component 2: Entering guaranteed payments for specific partners excluding health insurance that will add to Schedule K Lines 4a and 4b:

1. Go to Interview Form K-1 - Partner Information.
2. ​​In Box 166 - Guaranteed Payments -  Services, input the applicable amount not including health insurance premiums which will add to Schedule K, line 4a.
3. In Box 167 - Guaranteed Payments - Capital, input the applicable amount NOT including health insurance premiums which will add to Schedule K, line 4b.
4. Calculate the return.

Component 3: Entering health insurance payments that will add to the guaranteed payments on Schedule K Line 4a and 13d:

1. Go to Interview Form K-2 - Additional Partner Information.
2. In Box 50 - (MANDATORY) Partner Number, input the applicable partner number.
3. In Box 94 - Health Insurance Premiums, input the applicable amount.
4. Calculate the return.

Note:  Guaranteed payments entered on O-1 box 86 are not considered guaranteed payments and flow to the 1065 Pg. 1 line 4 instead.  If the amount should be guaranteed payments go to Interview Form K-1 and input the guaranteed payment amount on the respective Interview Form K-1 Box 166, 179, 192, and/or 205.