Self-employed health insurance - The IRS has now spoken !!

[veritas]

I think you have a problem

S-Corp with 1 shareholder not taking a salary therefore NO W-2 and no employees. Shareholder has Major Med Ins Plan in his name covering 4 member family. Should S-Corp reimburse shareholder the premium?

since there are no wages the dedcution above the line would not be permitted.

[Bees Knees]

You seem to be saying that you think the non Self Employed spouse's medicare premiums under his or her name can be deducted by the self employed spouse. I say no.

No, I'm saying that's what the cited IRS Letter Ruling says and was attempting to rationalize it. I disagree with their conclusion, and expect IRS to clarify the issue some day, but it is what it is.

[ddoshan]

For what it is worth, as I mentioned once before .. Our crack research department says the non self employed spouses premiums may be included. Not saying they are perfect but I am going by their advice.

[ChEAr$]

S-Corp with 1 shareholder not taking a salary therefore NO W-2 and no employees. Shareholder has Major Med Ins Plan in his name covering 4 member family. Should S-Corp reimburse shareholder the premium?

ABsolutely not. Shareholders do not enjoy this deduction that employees have.

Could a certain local bank in which I hold stock deduct my medicare premiums? Would they even reimburse me and then want to deduct it?

I think not..

[Lion]

Ttb 19-14.

[happyreturns]

happyreturns

How does this apply to COBRA payments made by a self employed individual to the past employer? Can they be deducted on line 29 of Form 1040?