Author Topic: S Corp Health Insurance  (Read 39 times)

wealthcreature

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S Corp Health Insurance
« on: July 06, 2017, 10:18:06 AM »
My question has to do with how health insurance premiums are paid under a S corp group policy. If I am the sole shareholder of the S corp then I realize that the S corp must pay/reimburse me, include the premiums paid/reimbursed in my gross wages (not subject to FICA) and then I will be able to deduct a self employed health insurance. What about if I just paid the premiums out of pocket? Assuming my only tax benefit would be the potential to itemize subject to 10% of AGI? Therefore, my only employees, who are my non-minor children, would also be paying their own premiums and not being reimbursed by the S Corp. They should still be able to pay premiums with pre-tax dollars, correct? Any thoughts are very much appreciated.

Maccountant

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Re: S Corp Health Insurance
« Reply #1 on: July 20, 2017, 03:46:49 PM »
Typically you would claim the adjustment to reduce your AGI for self-employed health insurance premiums paid (Line 29 of your 1040).

The benefit would come from reducing your income tax liability through this adjustment.

Since you are the 100% shareholder, I presume your children are traditional employees (receive a W-2). Whether the company wants to offer health insurance to its employees or reimburse them for costs incurred is up to you (assuming you are compliant with ACA), but as an employee you don't get any benefit for healthcare costs paid out of pocket other then claiming them on the Schedule A (if you itemize) like you had mentioned.