My husband and I are 50/50 shareholders of SCorp. The Corp paid $6k for health prem. for us & were included on our W-2s. Can SCorp deduct the $6k as biz expense?

[turbowinter2015]

My husband and I are 50/50 shareholders of SCorp. The Corp paid $6k for our health premiums for the year. The amount of preimium is on our W-2s. Can SCorp deduct the $6k as biz expense?

[Khai · Accepted solution]

Yes. Health insurance paid on behalf of a greater than 2-percent S corporation shareholder-employee are deductible by the S corporation and reportable as wages on the shareholder-employee’s Form W-2, subject to income tax withholding.

For a more detailed look at S Corporation Health Insurance, please refer to the IRS S Corporation Guidance under ‘Treating Medical Insurance Premiums as Wages’

[Opus 17]

Any wages the company pays are deductible as wages.  (It's not also a separate medical deduction, though.)  The issue here is that your premiums are counted as wages since you are owners.