SCorp Health Ins 1040 p1

[Randall]

We discussed this last year with the S Corp shareholder health insurance.  With ACA, Corp not paying the insurance, shareholder is paying from personal funds.  W2 showing same amount in boxes 1,3,5.  The question is can the shareholder still qualify for the 1040 page 1 deduction as self employed health insurance premiums.  Are there any cites or references?  I can never seem to find something that specifically mentions this.

[Abby Normal]

I don't have any cites, but I've always heard at seminars that the answer is no. Has to be paid by corp and added to W2.

[Randall]

3 minutes ago, Abby Normal said:

I don't have any cites, but I've always heard at seminars that the answer is no. Has to be paid by corp and added to W2.

This is what I was thinking too.

 

[Jack from Ohio]

If his only income is from the S-Corp reported on K-1, is he not self employed?

[michaelmars]

he is not self employed because there isn't any self-employment tax paid on S corp income distributions.

[Lee B]

Last year about this time the IRS issued transition rules that extended some of the old rules until

6/30/15 and other parts until 12/31/15. They also said that further guidance would be

forthcoming.  So far no more wisdom has been has been delivered to the residents of the real

world for 2016.

[Randall]

If I recall, the extension was that the penalties would not be assessed.  But I don't think that meant the treatment of the tax position was extended.