Is there any way for the S-corp to reimburse my health insurance premium deducted from her paycheck?
You can but it will do nothing for you ...it is not a deduction on the S-Corp return nor an adjustment on the personal return. It will simply be part of the draws she makes during the year and reported in the books for basis in the company. The profit on the 1120S for is passed thru to the members on the K-1 forms.
