If you are an officer to an S Corporation, you are going to have to jump through some hoops to properly report your officer's health insurance premiums. The IRS has ruled that in order to get the deduction on your form 1040 like most business owners (self employed), you have to include the premiums as taxable income on your W-2, and then deduct it on your corporate return as wages expense, and then deduct it again on your personal return. So two minuses and one plus equals one deduction. The IRS isn't known for making things simple, but they make the rules.
Source
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.
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.
0 Response to "A Winding Road to a Deduciton - S Corp Officer Health Ins"
Post a Comment