S Corp Wages Include Health Insurance Premiums

Forum|Forum|2 years ago
February 7, 2024
2 replies
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As a >2 owner. of my S Corp, I understand that my W-2 Box 1 wages must include my S corp Health Insurance Premiums. My question is: In TurboTax Business/Your Deductions/Compensation and Benefits/Salaries and Wages Paid. The wage I enter for me as a >2% owner of my S Corp already includes my health insurance premiums. I then again enter my health insurance premiums at: Insurance, health and other benefits: This amount I've entered for health and dental is then added to my total Salaries and Wages paid amount. This seems like I'm adding it in twice and I not? Should I be deducting the health insurance premiums from my wages before I enter my wages in the salaries and wages paid section? I hope this makes sense cuz I'm lost.

TurboTax Business Windows

ThomasM125

You shouldn't enter the shareholder health insurance benefits separately on your business tax return as insurance expense. They are included in the shareholder wages, and that is the only time they should get deducted on the business tax return. When you do your personal tax return, the premiums will be included in your wage income and then deducted as self-employed health insurance. So, you deduct the premiums as wage expense on the business tax return, then pick them up as income on your personal tax return, then deduct them as self-employed health insurance on your personal tax return. So, they are deducted twice and added once, that is how you get the deduction.

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SpeechlyAuthor

Thanks you...that makes sense...I sincerely appreciate your time to reply

Mike9241

not quite sure what you are doing but line 7 of the return should include the health insurance that the corporation paid for your health insurance and is entered nowhere else on page 1 of the 1120S. it also should appear in box 14 of your w-2 - to remember to take the deduction on your 1040.

say $10,000 for wages and $2,000 for health insurance then line 7 should be $12,000