How to input the 2% shareholder health insurance premiums in the K-1 section in SP so that it flows appropriately as an adjustment on Schedule 1, Line 16 of 1040.

 

In the K-1 Deductions section input in the S corp equivalent of Line 13M as shown below:

 

 

 

You also need to input their S corp wages from their W-2 in the SE/Credits/Foreign Tax credit section, in the SE income section at the top as shown below: