The determination of 2% shareholder status includes indirect ownership through family attribution rules. Under Section 318 of the Internal Revenue Code, stock owned by certain family members—spouses, children, grandchildren, and parents—is considered owned by the shareholder. A shareholder owning less than 2% directly may still qualify as a 2% shareholder if their family’s combined ownership exceeds the threshold.
is the health insurance included in box 14 or box 12DD?
if box 14, were your wages grossed up for the health insurance?
another possibility is that your share of the insurance was deducted from your paycheck. Box 1 of your w-2 was reduced for your payments and thus you are not entitled to any further deduction.
you need to talk to your company to get the details concerning your health insurance.
