For years I have been purchasing personal health insurance outside the marketplace and having my S-Corp pay the premiums. I include the cost of the health insurance on my W-2 as a benefit to > 2% shareholder. This has allowed me to then deduct the premiums on my 1040. I would then take the $12K as a tax credit on the 1040 so the overall cost to me for the 2002 plan would be $6,000 but the S-Corp would be able to deduct $18K.
In 2022, due to the American Rescue Plan I will be eligible for a premium subsidy so I will be purchasing a plan on healthcare.gov. My plan will cost $1,500 per month and I will be eligible for a $1,000 per month subsidy. I can have the subsidy paid each month or I can pay the full $1,500 premium each month through the S-Corp and take the subsidy as a tax credit when I file my 2022 taxes.
Assuming the latter - that I pay the full premium through my S-Corp each month - will the S-Corp be able to take the $18K deduction ($1,500 x 12 months) as it always has and then include the $18K on my 2022 W-2 allowing me to take the $18K as a deduction on line 10a of my 1040?
Any insight as to taking this approach instead of applying the tax credit each month in advance would be appreciated.
