Just curious if anyone has run across a scenario like this. The credit cannot be taken for a family member working for a more-than-2% shareholder in an S-corp. However, when I read the fine print it says that this applies to family members living in the home. In my case, the client owns an S-corp in which his adult daughter and one non-relative work full-time. The corp pays the full health insurance premium on both employees. So I'm thinking he can take the credit for the premium paid on the daughter's insurance because she lives in her own home and supports herself. Anyone have an opinion on this?