I am trying to best determine how to handle my health insurance premiums. I elected an S-corp for my LLC this year with my wife and I as Members; I am the only salaried employee. My wife is non-employee member. My wife is a school teacher with a qualified / subsidized health insurance plan on which she carries me as an insured. Is there any way for the S-corp to reimburse my health insurance premium deducted from her paycheck? I was looking at a QSEHRA, but sure enough I am not qualified. There are roadblocks everywhere on the deduction or business expense if a spouse has a qualified plan available. Any guidance would be appreciated. My premium portion will be about $483 per month.
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Is there any way for the S-corp to reimburse my health insurance premium deducted from her paycheck?
You can but it will do nothing for you ...it is not a deduction on the S-Corp return nor an adjustment on the personal return. It will simply be part of the draws she makes during the year and reported in the books for basis in the company. The profit on the 1120S for is passed thru to the members on the K-1 forms.
it is not an eligible S-Corp expense because the rule is that the policy must be in the name of the S-Corp or in the name of a shareholder-employee who must be reimbursed by the S-Corp. she is not an employee and policy is not in here name - she is merely covered by it.
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