After including reimbursement by S-Corp (2% owner) of insurance premiums in wages, do you actually receive those wages? My confusion is, since I have been reimbursed for premiums, am I double dipping by receiving the wages? Withholding has been taken into consideration.
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You receive your total W-2 wages in your paychecks + your health insurance reimbursement. Do NOT double dip from the S-Corp. You DO get to deduct your health insurance on your personal tax return. -
To re-state the previous reply, the >2% S-corp health insurance is added in to Form W-2 Box 1, but is not included in any paycheck net deposit to the employee. It was already paid to the insurance company, and should not/cannot be paid again. In other words, if the employee compares their Box 1 amount less all withholding to their net paycheck deposits, the difference should be the health insurance reimbursements."You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe HowardComment
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