S Corp Officer Health Insurance

Posted by Andy
The IRS has made the deduction of S Corp Officer Health insurance premiums like walking a maze. The officer must include the premiums in their wages (reported on their W-2). Then the corporation deducts this as officer fringe benefit/compensation. So far, we have a wash (especially if there is only one shareholder).

Now the officer can deduct the premiums paid on their personal return as an above the line deduction, just like any self-employed person.

While I understand the reasoning behind this, the IRS could have just ruled it a wash and saved a lot of time and payroll headache and we arrive at the same bottom line. But that would make too much sense I guess.

Be sure to note the other requirements about whose name the policy should be in and that the company needs to either pay the premium directly or reimburse the shareholder.

Link
Link 2
edit post

0 Response to "S Corp Officer Health Insurance"

Post a Comment

Subscribe to: Post Comments (Atom)

Disclaimer

The content on this blog (www.acollinscpa.blogspot.com) is my personal opinion based on my study and understanding of tax laws, policies and regulations. It’s provided for your private, noncommercial, educational and informational purposes only. It’s not a recommendation or endorsement of any company or product. It should not be relied upon as specific tax advice for your personal situation. I strongly suggest that when it comes to filing your taxes, you get additional, professional guidance from individuals who are familiar with your specific circumstances. Those who choose to rely solely upon the information on this site do so at their own risk and peril, and cannot hold the author liable in any form or fashion.

IRS CIRCULAR 230 DISCLOSURE REQUIREMENT: IRS Circular 230 requires us to notify you that any tax advice contained in this communication is not intended or written to be used, and cannot be used, by any person for the purpose of avoiding tax penalties that may be imposed by law.