shareholder s corp revisited HE ins

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  • TAX4US
    Senior Member
    • Mar 2010
    • 551
    #1

    shareholder s corp revisited HE ins

    Shareholder is a 50% owner and retired. S corp pays health insurance and puts on W-2 as wages. No SS or MT wages or withholding. Is tp entitled to tha 1040 pg 1 deduction? Brain dead this AM.
    Tags: None
    • DaveO
      Senior Member
      • Dec 2005
      • 1453
      #2
      No, the SEHI deduction is limited to the amount in Box 3 of the W-2.
      In other words, a democratic government is the only one in which those who vote for a tax can escape the obligation to pay it.
      Alexis de Tocqueville

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        • Burke
          Senior Member
          • Jan 2008
          • 7068
          #3
          Originally posted by TAX4US
          Shareholder is a 50% owner and retired. S corp pays health insurance and puts on W-2 as wages. No SS or MT wages or withholding. Is tp entitled to tha 1040 pg 1 deduction? Brain dead this AM.
          See Rev Ruling 91-26 and Chief Counsel Memorandum 201228037. Health insurance premiums cannot be deducted as SEHI to the extent they exceed the earned income (Box 3) of the employee/shareholder. Perhaps he can deduct on Sche A.
          Last edited by Burke; 01-20-2014, 02:46 PM.

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