SE Health for S-Corp Owner

[Kram BergGold]

S- Corp owner gets a W-2 with 100k wages. She pays $2,000 a year out of her pocket, not out of the corporation, for health insurance.
Can she deduct this as SE Heath on form 1040?

[TAXNJ]

Does this....

S- Corp owner gets a W-2 with 100k wages. She pays $2,000 a year out of her pocket, not out of the corporation, for health insurance.
Can she deduct this as SE Heath on form 1040?

Help with your scenario?

https://www.irs.gov/businesses/small-businesses-self-employed/s-corporation-compensation-and-medical-insurance-issues

[TaxGuyBill]

If the corporation reimbursed her for the insurance and added it to Box 1 of her W-2, yes (assuming she is not eligible for other employer-subsidized health insurance).

Otherwise, no.


If it was not reimbursed (and added to Box 1), that should probably be done in the future.

[John of PA]

If the health insurance is not included in Box 1 of the W-2, then she cannot deduct it on p1 of the 1040.

[Kram BergGold]

Thanks and the next step

My associate who took the position that medical insurance could be deducted by an S Corp owner without it being in W-2 has relented. Now he asks what about LTHC insurance. Can the S Corp owner take it as SE health if it is paid for outside the Corp.

[John of PA]

I do not see how they could.