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At gedeon law & cpa, we specialize in dealing with the tax issues facing s corporation owners. Business taxes, health insurance, tax tips.
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Deduct your insurance premiums on your personal tax return Health insurance employee benefit for a s corporation.
S Corp Health Insurance On 1040
Medical expense reimbursements (excluding health insurance) should be recorded as shareholder draws/distributions and taken on their individual form 1040, schedule a.National society of accountants 1010 n.One drawback to the s corporation is that employee/owners cannot deduct the cost of health insurance from taxes.Page 16 of the instructions for form 1120s states:
S corporations, partnerships, and limited liability companies (llcs) with more than one member are subject to the same health insurance premium deduction rules as described above.S corps that discriminate on health insurance coverage.The $10,000 of health insurance gets deducted by the s corporation and reported on the s corporation’s tax return as fringe benefits expense.The premiums the business paid can be deducted on your form 1040 (line 29) and as a business expense on form 1120s.
These deductions are made by the shareholder on his or her form 1040 if the health plan was established by the business and not purchased by the individual.This is not a business deduction.To determine whether the policy is established by the business, the.Treating medical insurance premiums as wages.
What does this look like in wagepoint?While an s corp has pass through taxation, like many other forms of tax elections, in respect to health insurance premiums, the law gets more complex.Your health insurance premiums paid by.