NECPA in NEBRASKA Posted February 2, 2015 Report Posted February 2, 2015 A client brought me in their W2-s early, because I have always amended them and put their health insurance in Box 1. I was going to add it to to their FICA taxable also, this time and change the 941 before it went out. Fortunately, she brought in a 1095 and I realized that this year, they bought it on the exchange and got an advance premium. That's totally a no-no with a corporation. I wish that their broker had not told them that it wasn't a problem. My question is, do I add it to their income as I was going to or take it as distributions. This is fixed now. I had already told them to stop the withdrawals from the business account after the DOL ruling, when I thought that the insurance was a normal individual policy. I hope that I don't run into a lot of messes like this later on. I am leaning towards the distributions. Thanks for any ideas. Quote
grmy2h Posted February 3, 2015 Report Posted February 3, 2015 (edited) Did they take a reasonable salary? Edited February 3, 2015 by grmy2h Quote
NECPA in NEBRASKA Posted February 3, 2015 Author Report Posted February 3, 2015 Yes, both of them did. Quote
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