I'd like to take advantage of the Self-Employed Health Insurance Deduction on my individual tax return by having my S-Corporation reimburse me for my health insurance premiums. I know that this requires the corporation to include the amount of the premiums reimbursed on my W-2 gross wages. Currently, the corporation doesn't pay me any wages, so I haven't dealt with a W-2 in the past. What are the tax implications of having my corporation pay me wages that are reported on a W-2? What additional paperwork will I need to file with the IRS if the corporation starts reporting wages to me on a W-2? I'm in Texas, so there is no state income tax to worry about, just federal.
