Situation: C corporation, one shareholder/director. No employees.
Can the C corporation deduct the directors health insurance premiums?
Can the C corporation deduct the directors health insurance premiums?
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Does the director serve as an employee as well? I know you said no employees, but I am not certain if the shareholder/director is an employee. If he/she is, then the corporation can reimburse the shareholder's health insurance and deduct as a business expense.
If the shareholder is not an employee, then the corporation could pay the health insurance premium, but it would have to be included on Form 1099MISC and the shareholder could deduct premium on page 1 Form 1040 to the extent not limited by self-employment earnings.
As a director, the shareholder is not entitled to the same tax-free fringe as employees (unless they serve as both).
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