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emc011075, Tax adviser
Category: Tax
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Experience:  IRS licensed Enrolled Agent and tax instructor
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Tax question: taxpayer is a 50% owner of an s corporation he

Customer Question

tax question:
taxpayer is a 50% owner of an s corporation
he pays his own health insurance out of his own pocket and is not reimbursed by the s corp
there is no inclusion therefore on his w-2 since the s corp didn't pay it
the question - can the taxpayer deduct the health insurance premiums paid as self employed health insurance or must he include the premiums paid with medical expense itemized deduction?
Submitted: 7 months ago.
Category: Tax
Expert:  emc011075 replied 7 months ago.

Hi. My name is ***** ***** I will be happy to help you.

Unfortunately, to be deductible as SE insurance premiums, the premiums would have to be paid by the corporation or paid by you and reimbursed by the corporation and included on your w2.

From IRS website:

... If the shareholder purchased the health insurance in his own name and paid for it with his own funds, the shareholder would not be allowed an above-the-line deduction. On the other hand, if the shareholder purchased the health insurance in his own name but the S corporation either directly paid for the health insurance or reimbursed the shareholder for the health insurance and also included the premium payment in the shareholder’s W-2, the shareholder would be allowed an above-the-line deduction...

Customer: replied 7 months ago.
That's what I thought - I needed confirmation
Expert:  emc011075 replied 7 months ago.

You're welcome. Is there anything else I can help you with today?

Expert:  emc011075 replied 7 months ago.

And if this answered your question, please take a moment to rate my response so that I may receive credit for assisting you today. You find the rating bar on the top of the page – 5 stars. However, if you need clarification, or want to discuss this issue further, let me know. Thank you.

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