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Hello6
New Member

I am the only owner and employee of an S Corp. Report my workers comp premium in Box 1 of W-2 similar to health premium and deduct as wages in 1120S ? Please advise.

I am the only owner and employee of an S Corp. Should I report my workers comp premium in Box 1 of W-2 similar to health premium and deduct as wages in 1120S ?

If Yes, how to deduct workers comp premium in 1040 personal return ?

Please advise on how to get deduction for workers comp premium for S corp owner.

From Publication 535:

b. If an S corporation pays workers' compensation premiums for its more than2%
shareholder employees, it generally can deduct them, but must also include them in the shareholder's wages.

2 Replies
RichardK
New Member

I am the only owner and employee of an S Corp. Report my workers comp premium in Box 1 of W-2 similar to health premium and deduct as wages in 1120S ? Please advise.

No, workers compensation is a business expense deductible by the S corporation as an ordinary and necessary expense.

Hello6
New Member

I am the only owner and employee of an S Corp. Report my workers comp premium in Box 1 of W-2 similar to health premium and deduct as wages in 1120S ? Please advise.

Thank You! However, I see the below in IRS publication 535. It says that Worker's comp insurance premium must be included in shareholder wages for S Corp owner. Please clarify.

b. If an S corporation pays workers' compensation premiums for its morethan2%
shareholder employees, it generally can deduct them, but must also include them in the shareholder's wages.

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