DawnC
Expert Alumni

Deductions & credits

You may be able to use the Self-Employed Health Insurance (SEHI) deduction if you're at least a 2% shareholder in an S Corporation. To claim this deduction, the health insurance premiums must be paid or reimbursed by the S corporation and reported as taxable compensation in box 1 of your W-2.

 

The S Corporation can either purchase the policy in your name or reimburse you for the premiums you paid. The policy can also cover your spouse, dependents, and any nondependent children under the age of 27.

 

How to enter the Health Insurance Deductions as an S-corp Shareholder

 

See Self-Employed Health Insurance Deduction - IRS Pub 535

 

[Edited 04/03/23 |  12:15 PST]   @crmck26 

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