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Where do you record and deduct "Fringe Benefits" paid to a spouse instead of taxable wages for working as an employee for my sole proprietor business, such as Health care premiums and life insurance, etc., in Turbo Tax Home & Business? Will Turbo tax step-by-step guided questions ask me this question? And since we would be filing married jointly, how do we record my spouse's employment in the information section to reflect that she works with me and is paid with untaxable fringe benefits? Thank you
This is a permitted tax deduction; read this: https://pinewoodfs.com/blog/tax-benefits-hiring-spouse
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LINE 14 Employee benefit programs
(other than on line 19) .
LINE19 Pension and profit-sharing plans .
Health insurance premiums for a self-employed person would include your spouse and would be deductible using the self-employed health insurance deduction. You will see that in the business section of TurboTax under the Less Common Business Situations menu and then Self-employed Health Insurance. You will see this when you enter the business section on the page that says Let's gather your business info.
Life insurance would not likely be deductible if you were the beneficiary. Also, you would have to pay a wage to your spouse and report that on a W-2 form and have a group life insurance policy for it to be deductible.
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