Discussion:SE Health Ins. S Corp Shareholder
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Discussion Forum Index --> Tax Questions --> SE Health Ins. S Corp Shareholder
| 14 February 2006 | |
| In the past health insurance has been passed through to the S Corp. shareholders and they would deduct the premiums on page 1 of the 1040. This year the Form 1120S K-1 does not have a place to put the insurance premiums. Since the premiums are now 100% deductible by the shareholder are they now deducted by the S corporation and not passed through? | |
| 14 February 2006 | |
| IRS position for years has been that health insurance for shareholders who work in the business is
to include the premimum cost as part of W2 wages. I dont have a reference to hand, but I believe this treatment is from a Rev Ruling. WillyB 12:34, 14 February 2006 (CST) | |
| 14 February 2006 | |
| For 2005 shareholder insurance paid by S Corp still needed to be included in box 1 of W-2 but not box 3 or 5. I noted the amount with a code STFB in box 14. It is deductible on 1120s. STFB is just a code I used to inform shareholders of exactly what it pertains to and the potential handling on their own tax return. | |
| 20 February 2007 | |
| I have an issue where the S-corp (K-1) is showing s/h health as an other income item, and an other deduction item. The dollar amounts are different. I was told that the difference related to the % of ownership vs actyal paid for his coverage? Should these income and expense items flow thru the s-corp?
Also, the employees W-2 does not include the S/H health amount. Does this make sense to anyone??? How would this be treated? | |
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