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Level 2
December 7, 2019
Solved

Can you deduct social security health insurance, as a single owner S Corp., as self employed health insurance on 1040 as you can as a Sch. C filer?

  • December 7, 2019
  • 5 replies
  • 42 views
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Best answer by itonewbie

Yes, so long as your client is a 2-percent shareholder within the meaning of §1372(a), §162(l) allows the same deduction to be taken but the premiums must either be paid directly or reimbursed by the S-corp and the premiums must be included in the shareholder-employee's wages.

5 replies

itonewbie
Level 15
December 7, 2019
What "social security health insurance" might you be referring to?
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Level 7
December 7, 2019
Medicare premiums
itonewbie
Level 15
December 7, 2019
Just noticed it's not @johnefarrar who responded.  @Greta, it's best to leave it to the OP to clarify just to make sure we have the correct set of facts.
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itonewbie
itonewbieAnswer
Level 15
December 7, 2019

Yes, so long as your client is a 2-percent shareholder within the meaning of §1372(a), §162(l) allows the same deduction to be taken but the premiums must either be paid directly or reimbursed by the S-corp and the premiums must be included in the shareholder-employee's wages.

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itonewbie
Level 15
December 7, 2019
This assumes it's Medicare premiums you were referring to.
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