Glad to help.
As an FYI, note that under the IRS rules, an S Corp taxpayer is eligible for the self-employed health insurance deduction only if the S Corp either pays the policy directly, or reimburses the shareholder for premiums paid directly by the shareholder (for a policy in the shareholder’s name). In either case, the S Corp is required to include the health insurance premiums in the shareholder W-2 box 1 wages and report those health insurance premiums as wages on the Form 1120S.
S Corps that have not complied with the IRS rules to report “more than 2% shareholder health insurance premiums” as W-2 wages need to file corrected W-2 forms for these more than 2% shareholders. Note that only wages reported to the SSA within 60 days of the deadline are eligible to be counted as wages for QBI purposes. Also, the S-Corp should report these health insurance premiums for more than 2% shareholders as wages on Form 1120S and the shareholder K-1 as part of Section 199A wage reporting.
For more information, see the IRS website at this link.
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