LLC Medical Expense

[Unregistered]

LLC has two members. Medical insurance is deductible. But are medical expenses related to doctor visit and prescriptions also deductible? Or should those expense be treated as distribution.

[Gretel]

Is your LLC taxed as a partnership?

[Unregistered]

Yes. It is filing 1065.

[veritas]

Medical premiums are not deductible for partners on the 1065. And medical expenses aren't either. Medical preniums are an adjustment on the partners' individual tax returns.

[Bees Knees]

Any medical expenses paid on behalf of the partners should be listed separately on line 13 of the partner's K-1, code W as "other deductions" with an explanation attached saying it was for medical expenses of that partner. Any medical premiums paid for the partner should be listed separately on line 13 of the partner's K-1, code M. The partner then uses this information to take a deduction on his or her 1040.

[OldJack]

Any medical expenses paid on behalf of the partners should be listed separately on line 13 of the partner's K-1, code W as "other deductions" with an explanation attached saying it was for medical expenses of that partner.

As a matter of further clarification note that the partnership income in box 1 of the K-1 has not been reduced by the medical expenses. In other words the medical expense is not a deductible expense from profit on form 1065, rather just a flow through to the 1040.

[JoshinNC]

medical premiums for a member are GP

TTB page 20-5

member is eligible for SE Health Insurance deduction on 1040 subject to net SE income.