Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted May 31, 2019 5:53:49 PM

What line of IRS Form 1120 do I record medical deductions for my C Corp

I have a C Corp and have verified with my tax strategist that my medical reimbursement plan meets all of the IRS requirements, so please no lectures about what conditions must be met for a qualified medical related deduction. 

I am just looking for assistance with determine which line to record the medical deduction.

I am using Turbo Tax, but I am not sure that the program fully understands my situation - Turbo tax has categorized this as a line 24 (Employee Benefit) deduction but I am thinking maybe it should be recorded on line 26 (Other Deductions).  Any help is greatly appreciated.

0 3 5737
1 Best answer
Level 9
May 31, 2019 5:53:53 PM

It doesn't really matter which line it goes on, but Line 24 seems the most logical to me.

 

I know you didn't want a lecture, but MOST tax professionals are not well versed with healthcare rules, so are you sure that your "tax strategist" is up-to-date?  For example, have you filed your Excise tax return yet to pay your PCORI fee?  It was due July 31st.

Unless you are working your medical reimbursement plan though a large third-party company, you may want to make sure that your Medical Reimbursement Plan doesn't conflict the the Affordable Care Act and its Regulations.


3 Replies
Level 15
May 31, 2019 5:53:51 PM

If this is for the benefit of the employees then it belongs on line 24.

Line 24. Employee Benefit
Programs
Enter contributions to employee benefit
programs not claimed elsewhere on the
return (for example, insurance or health
and welfare programs) that are not an
incidental part of a pension, profit-sharing,
etc., plan included on line 23.

<a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/i1120.pdf">https://www.irs.gov/pub/irs-pdf/i1120.pdf</a>

New Member
May 31, 2019 5:53:51 PM

I also looked further into IRS pubs and agree with Turbo Tax and TaxGuyBill - Line 24 is the best answer.  Thanks TaxGuyBill!!

Level 9
May 31, 2019 5:53:53 PM

It doesn't really matter which line it goes on, but Line 24 seems the most logical to me.

 

I know you didn't want a lecture, but MOST tax professionals are not well versed with healthcare rules, so are you sure that your "tax strategist" is up-to-date?  For example, have you filed your Excise tax return yet to pay your PCORI fee?  It was due July 31st.

Unless you are working your medical reimbursement plan though a large third-party company, you may want to make sure that your Medical Reimbursement Plan doesn't conflict the the Affordable Care Act and its Regulations.