I have a client that has s s-corp. He is the only employee and gives himself a w2. He pays his own insurance. I think the health insurance should be a benefit of the s-corp and gets wrote off there. He says he writes it off as self-employment health insurance on sch-1. What is correct?
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It should be added to Box 1 of his W-2, then deducted as SEHI, so it's a wash on the 1040. On the S-corp, it is deducted as officer compensation. I'm pretty sure TheTaxBook research material describes this treatment, it was announced in an IRS notice back in 2008, as I recall. edit: see chapter 19 in TheTaxBook Deluxe "Fringe Benefits for S Corporation Shareholders"Last edited by Rapid Robert; 04-11-2025, 11:13 AM."You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe Howard
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