My spouse and I are the owners of an S-Corp. We don't have any employees. We have Affordable Care Action health insurance (more specifically, Covered California insurance) and want to count it as a business expense.
To my understanding the S-Corp needs to reimburse our health insurance premium by paying the premium to us as part of our salaries. However, I'm confused what will happen if we receive additional ACA subsidies or have to pay back excess ACA subsidies when filing the 2021 personal income tax return later. Will we need to go back and adjust all the 2021 salary amounts (and as a result adjust all federal and state quarterly payroll forms and the year-end W-2s), since the final health insurance premiums are different from the initial payments? This seems to be a big mess and I'm utterly confused.Thanks a lot for your help!
