you have a problem for a S-Corp shareholder. to deduct as self-employment health insurance, the IRS requires that the insurance must be included on your W-2 as wages (not subject to FICA or Medicare). not on w-2 or no W-2 then no deduction except on schedule A. in addition no salary can raise audit issues with the IRS. the IRS requires S-corp shareholders who perform services for their corp to take reasonable compensation. failure, if caught, will result insubstantial penalties interest and taxes.
