Where to Enter Guaranteed Payments in UltraTax CS
Screen Rent carries the total guaranteed payments fields, split between health insurance, pensions and IRAs, and other. The net of those flows to Form 8825 line 15, and the health insurance amount also transfers to Schedule K line 4, guaranteed payments, and line 13, other deductions. Allocation between partners is done with the Ptr Alloc field on Screen SepK.
- Folders
- Screen Rent
- Total guaranteed payments
| Trial balance account | UltraTax CS screen and field | Lands on |
|---|---|---|
| Guaranteed payments, health insurance | Screen Rent, total guaranteed payments: health insurance | Schedule K lines 4 and 13, Form 8825 line 15 |
| Guaranteed payments, pensions and IRAs | Screen Rent, the pensions and IRAs field | Form 8825 line 15 |
| Guaranteed payments, other | Screen Rent, the other field | Form 8825 line 15 |
| Allocation between partners | Ptr Alloc field on Screen SepK | Each K-1 lines 4 and 13 |
| Partner draws | Capital accounts on Screen M1M2. Not guaranteed payments | Schedule K line 19a and item L |
| Capital account method | Screen K1Misc | Item L basis |
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| Acct # | Account | Debit | Credit |
|---|---|---|---|
| 1000 | Cash | 42,800.00 | |
| 1200 | Accounts receivable | 68,500.00 | |
| 1300 | Inventory | 55,000.00 | |
| 1500 | Equipment | 145,000.00 | |
| 1510 | Accumulated depreciation | 47,500.00 | |
| 2000 | Accounts payable | 28,400.00 | |
| 2100 | Accrued expenses | 9,200.00 | |
| 2400 | Notes payable | 92,000.00 | |
| 2450 | Due to shareholder | 15,000.00 | |
| 3000 | Common stock | 10,000.00 | |
| 3900 | Retained earnings | 86,300.00 | |
| 3950 | Shareholder distributions | 52,000.00 | |
| 4000 | Gross receipts | 612,000.00 | |
| 5000 | Cost of goods sold | 318,000.00 | |
| 6000 | Salaries and wages | 88,000.00 | |
| 6050 | Officer compensation (the account this page is about) | 72,000.00 | |
| 6300 | Depreciation expense | 21,500.00 | |
| 6900 | Other operating expenses | 37,600.00 | |
| Total | 900,400.00 | 900,400.00 |
Example journal entries
| Account | Debit | Credit |
|---|---|---|
| Guaranteed payments to partners | 90,000.00 | |
| Cash | 90,000.00 |
| Account | Debit | Credit |
|---|---|---|
| Guaranteed payments to partners | 14,400.00 | |
| Cash | 14,400.00 |
Three fields that combine
Screen Rent holds total guaranteed payments split three ways: health insurance, pensions and IRAs, and other. The amounts combine, and the net flows to Form 8825 line 15.
The health insurance amount also transfers to Schedule K line 4, guaranteed payments, and line 13, other deductions. That double path is the mechanism that gets the premium deducted by the partnership and reported to the partner so they can take it personally.
Allocation is a separate step
The Ptr Alloc field on Screen SepK allocates the health insurance treated as guaranteed payments, reported on Schedule K lines 4 and 13, to the partners.
This is the step that gets missed, and the consequence is specific: a guaranteed payment that went to one partner, allocated across all partners, misstates every partner's self employment income while the partnership total stays correct. Nothing on the return looks wrong.
Guaranteed payment, draw, or distribution
Three different things that arrive in client books as one account called partner payments.
A guaranteed payment compensates a partner for services or for the use of capital. Deductible by the partnership, line 4 of the K-1, generally self employment income.
A draw is a withdrawal of the partner's own capital. Not deductible, reported in item L of the K-1, and handled through the capital accounts on Screen M1M2.
A distribution is the same thing the return calls what the books call a draw, reported on Schedule K line 19a.
Getting the split wrong moves money between a deduction and an equity account, which changes taxable income and every partner's K-1. The decision comes from what the payments were for, so it belongs with the client rather than in the software.
Partner health insurance, the practical version
Premiums for a partner are generally guaranteed payments: the partnership deducts them, the partner includes them in income, and the partner then deducts them personally as self employed health insurance.
Left in insurance expense they understate guaranteed payments, overstate ordinary deductions, and cost the partner the deduction. It is the partnership version of the problem that shows up on every S corporation return with a shareholder on the company plan.
Tax return treatment
| Form | Line |
|---|---|
| Form 1065 | Schedule K line 4, line 13 for the insurance portion, and line 4 of each K-1 |
| Form 8825 | Line 15, for the net of the guaranteed payment fields |
Common questions
Where do I enter guaranteed payments in UltraTax CS?
Screen Rent holds the total guaranteed payments fields, split between health insurance, pensions and IRAs, and other. The net flows to Form 8825 line 15, and the health insurance portion also transfers to Schedule K lines 4 and 13.
How do I allocate guaranteed payments between partners?
With the Ptr Alloc field on Screen SepK, which allocates the health insurance treated as guaranteed payments reported on Schedule K lines 4 and 13. Skipping it leaves the partnership total correct while every partner self employment income is wrong.
Are partner health insurance premiums guaranteed payments?
Generally yes. The partnership deducts them, the partner includes them in income, and the partner deducts them personally as self employed health insurance. Leaving them in insurance expense understates guaranteed payments and costs the partner the deduction.
What is the difference between a guaranteed payment and a draw?
A guaranteed payment compensates a partner for services or capital and is deductible by the partnership, appearing on line 4 of the K-1. A draw is a withdrawal of capital: not deductible, reported in item L, and handled through the capital accounts on Screen M1M2.
Related answers
Go deeper
This page is the short answer. These articles work through the same ground in detail.
Last reviewed October 18, 2026.