this is a must to be able for the 2% shareholder to deduct the health insurance
For the S corporation more-than-2-percent shareholder-employee to deduct his or her cost of health insurance, the S corporation has to either pay the premiums to the insurance company or reimburse the more-than-2-percent shareholder-employee for the cost of his or her individually purchased insurance. Notice 2008-1
Now that you have the insurance cost on the S corporation’s books, you take the premiums and
add them to the more-than-2-percent shareholder-employee’s W-2 (box 1). Also report in box 14 of the S-2.
on the corporate return include on the same line as the shareholder's other compensation.
whose return are you asking about? your's? you get no health insurance deduction
when entering the K-1 there should be a question about the premiums and Medicare wages.
if not done properly like no compensation to the s/h/improper method of paying insurance/ failure to properly report on 1120S or W-2/ the deduction is not allowed. However, if it's an issue of putting the properly paid premiums on the wrong line for the 1120s or failure to properly report eligible payments on the w-2 in the proper places, amended returns can be filed.
