self employment health insurance deduction

[ardi600]

that deduction is available for s corp shareholders of 2 percent or more. In summary:
s corp takes a deduction by including the amount in shareholder's w-2
shareholder will have higher wages reported on his w-2 but takes the deduction on line 29 to offset that.
My questions:
my understanding is that the s corp with include the premium in box 1 of shareholder-employee w-2 and not box 3 and 5 therefore not subject to SE tax, is that correct?
what if a shareholder does not receive wages from the s corp(for reasons such as he is not providing any services....). would the s corp just take a deduction as insurance expense?

[appelman]

Yes to first question.

Second question is interesting. I suppose the Corp could issue a W-2 just in the amount of the insurance.

[Burke]

Appelman is correct. The SCorp would have to issue a W-2 showing it as taxable income in Box 1, and Box 16, but nothing in Boxes 3 & 5. The shareholder must report it as wages in order to deduct it as SEHI.