S Corp employee medical cost

[autumnii]

My husband and myself are the sole shareholders in our S Corporation, each having a 50% stake. We are also both employees for the corporation. Can the corporation pay for our direct primary care program as an employee benefit? If so what taxes are owed on the cost, and can we deduct the cost on our personal taxes?

[MinhT1]

Yes, the S-Corp can pay for the cost of your health insurance, but must report the amount as taxable wages on your respective forms W-2.

On the your personal tax return(s), you can deduct the cost of insurance as Self-Employed health insurance.

You can enter your health insurance costs when entering your form K-1.

Revisit your K-1 entry until you get to the page Describe this Partnership. Check the box I personally paid health insurance and/or long-term care insurance premiums for myself and my family. and click Continue. On the next page, you can enter your health insurance premiums which will be transferred to Part II line 16 of Schedule 1 of form 1040.

[autumnii]

Yes I understood that about insurance, but what we have is Direct Primary Care which is technically not insurance. It is a monthly fee paid to our doctor that covers his services.

[MinhT1]

If this is not insurance, then you cannot deduct it as Self-employed health insurance.