USA S corp - Medical insurance
- Thread starter Anu
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Same situation and my CPA advised the opposite. Do you pay yourself on payroll? The health insurance gets reported on state & fed filings throughout year, and W2 line 1 total and then separately on line 14.
DTA93433
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A more than 2% shareholder in an S-corp has the option of either (1) having the S-corp pay the insurance directly or (2) paying out of the pocket and being reimbursed by the S-corp. Either way for Total Income purposes (Line 22) it's a wash. Line 7 (Wages) is increased by the W-2 income. Line 17 (S-corp) income is reduced by the same amount. An adjustment is made to income on Line 29.
The IRS itself gives some guidance here: https://www.irs.gov/businesses/smal...ion-compensation-and-medical-insurance-issues
As long as the policy is in compliance with new ACA requirements (see link) and as long as one's spouse was NOT eligible to participate in any other subsidized health care plan, I'd say - of course!
The IRS itself gives some guidance here: https://www.irs.gov/businesses/smal...ion-compensation-and-medical-insurance-issues
As long as the policy is in compliance with new ACA requirements (see link) and as long as one's spouse was NOT eligible to participate in any other subsidized health care plan, I'd say - of course!