Although some people disagree with me, I think the corporation should be reimbursing the FULL amount of insurance (before the Advance Credit). So the best way to do that would be to submit monthly reimbursement requests (for the full amount) to the corporation, and then the corporation writes out a check to reimburse that.
When he receives his W-2 from the corporation, the reimbursed Medical Premiums will be added to box 1 of the W-2 (but not boxes 3 or 5, which saves Social Security and Medicare taxes). That full amount of the W-2 is deductible by the corporation.
When he files his personal tax return, he would then usually qualify for the Self Employed Health Insurance deduction (which sort-of effectively removes that 'extra' amount in box 1 of the W-2) and thereby saves Income taxes.
It is well worth the money/consulting to have a GOOD tax professional to learn how to run the corporation. Just be sure your tax professional knows corporations (many just to Individual returns).
