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I’m a self-employed S corp. My CPA does my 1120S and issues…

I’m a self-employed S...

I’m a self-employed S corp. My CPA does my 1120S and issues me a K-1and a W-2 each year. I do my own 1040 using TurboTax. In my 1120S, my CPA deducted on Line 19 my health insurance premiums that were paid directly from my business account.

Accountant's Assistant: The Accountant will know how to help. Is there anything else the Accountant should be aware of?

Althoughmy CPA deducted my health insurance premiums in my 1120S, May I still deduct the premiums on my 1040 as an above the line deduction?

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Answered in 33 minutes by:
3/26/2018
ABC Accounting Group
ABC Accounting Group, Financial Advisor
Category: Finance
Satisfied Customers: 889
Experience: Accounting Manager
Verified

Hi. Great Question. The insurance the company pays is usually included in compensation in your W-2 from the S-Corp. Since you are more than a 2% shareholder/employee in an S corporation, you may only deduct health insurance premiums directly on Form 1040, line 29, Self-employed health insurance deduction, if the health insurance plan is considered to have been established by the business and not by you personally.

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Let me know if this helps and if you have any questions. Thank you.

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Customer reply replied 4 months ago
my CPA included in my W-2, box 1 the health insurance premiums as compensation. But, she also deducted them on Line 19 of my 1120S. Again, may I deduct the premiums on my personal 1040, even if the premiums were deducted by the S corp in my Form 1120S? The health insurance is in my name and paid for by the business.

Only if the insurance was established by the business.

ABC Accounting Group
ABC Accounting Group, Financial Advisor
Category: Finance
Satisfied Customers: 889
Experience: Accounting Manager
Verified
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