Can officers health insurance be expensed? "C" Corp has no W2 employees. Officers/Shareholders compensation was reported on 1099s.

Forum|Forum|6 years ago
June 1, 2019
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This is a 2015 'C' Corp return. No 940 or 941s were filed since there were no w2 employees. The officers/shareholders medical insurance payments were made by the corporation. Officers/shareholders compensation was reported on 1099 misc.

TurboTax Business Windows

Best answer by SweetieJean

Solved in comments.

Critter

Employee

I don't think the "shareholders" can be paid on a 1099 by a C-corp... they receive dividends on a 1099-div since they own stock in the company. Officers would be employees and are to be paid on a W-2.

<a rel="nofollow" target="_blank" href="https://www.irs.gov/businesses/small-businesses-self-employed/paying-yourself">https://www.irs.gov/businesses/small-businesses-self-employed/paying-yourself</a>

I highly advise you seek a qualified CPA &/or tax attorney to correct this mess.

Critter

Employee

other post has correct answer ... <a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/3384446-are-medical-exp-health-ins-prem-exp-taxable-to-corp-officers-when-filing-a-c-corp-return-with-a-net-loss-if-the-corp-showed-a-profit-would-it-make-a-difference">https://ttlc.intuit.com/questions/3384446-are-medical-exp-health-ins-prem-exp-taxable-to-corp-officers-when-filing-a-c-corp-return-with-a-net-loss-if-the-corp-showed-a-profit-would-it-make-a-difference</a>

SweetieJean

Employee

<a rel="nofollow" target="_blank" href="http://info.legalzoom.com/can-corporation-paying-salaries-20886.html">http://info.legalzoom.com/can-corporation-paying-salaries-20886.html</a>

Critter

Employee

<a rel="nofollow" target="_blank" href="https://www.aicpastore.com/Content/media/PRODUCER_CONTENT/Newsletters/Articles_2014/CorpTax/reemergence-of-C-corporations.jsp">https://www.aicpastore.com/Content/media/PRODUCER_CONTENT/Newsletters/Articles_2014/CorpTax/reemergence-of-C-corporations.jsp</a>

TaxGuyBill

Employee

A agree, you should go to a tax professional. The officers ARE W-2 employees, not Independent Contractors that receive a 1099-MISC.
<a rel="nofollow" target="_blank" href="http://taxexperts.naea.org/">http://taxexperts.naea.org/</a>