Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
debogey
Level 1

As the sole owner/employee of an S corporation, is that considered self-employed? When I entered the K1 info, TT asked if I paid health insurance and was self-employed.

My S corporation only employs myself and my spouse. We both paid our health insurance premiums by ourselves, not through the corporation, and not through the marketplace.
1 Best answer

Accepted Solutions
RichardK
New Member

As the sole owner/employee of an S corporation, is that considered self-employed? When I entered the K1 info, TT asked if I paid health insurance and was self-employed.

Yes, the health insurance premiums you pay may be an AGI deduction if your S corporation reimburses you for the premiums and includes them in your W-2 (see below), however the health insurance paid by your spouse may qualify for an itemized deduction, click here for the 2016 IRS publication 535, Business Expenses, chapter 6. Insurance, which states: "For more-than-2% shareholders, a policy can be either in the name of the S corporation or in the name of the shareholder. You can either pay the premiums yourself or the S corporation can pay them and report the premium amounts on Form W-2 as wages to be included in your gross income. However, if the policy is in your name and you pay the premiums yourself, the S corporation must reimburse you and report the premium amounts on Form W-2 in box 1 as wages to be included in your gross income. Otherwise, the insurance plan won’t be considered to be established under your business."

View solution in original post

1 Reply
RichardK
New Member

As the sole owner/employee of an S corporation, is that considered self-employed? When I entered the K1 info, TT asked if I paid health insurance and was self-employed.

Yes, the health insurance premiums you pay may be an AGI deduction if your S corporation reimburses you for the premiums and includes them in your W-2 (see below), however the health insurance paid by your spouse may qualify for an itemized deduction, click here for the 2016 IRS publication 535, Business Expenses, chapter 6. Insurance, which states: "For more-than-2% shareholders, a policy can be either in the name of the S corporation or in the name of the shareholder. You can either pay the premiums yourself or the S corporation can pay them and report the premium amounts on Form W-2 as wages to be included in your gross income. However, if the policy is in your name and you pay the premiums yourself, the S corporation must reimburse you and report the premium amounts on Form W-2 in box 1 as wages to be included in your gross income. Otherwise, the insurance plan won’t be considered to be established under your business."

Dynamic AdsDynamic Ads
Privacy Settings
v