I think you're right.  In order to be a SE Health insurance deduction, it has to be paid by the company and is supposed to be on the W2. The APTC he has to pay back isn't on the W2 for 2022 so I will not include it.  I don't know if it would even be acceptable for the S Corp to reimburse the amount and then deduct it and put it on the W2 for 2023.  They didn't plan correctly, paid premiums based on too little income, so maybe they lost the opportunity.