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March 23, 2022
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S-corp owner healthcare premium deduction up to medicare wage or Box1 of W2?

  • March 23, 2022
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I am 100% owner of an S-corp.   My W2 Box 1 wage amount ($10,000) is significantly lower than my Medicare/Social security wage ($22,000) since I contribute to a self-employed 401k plan.   I have paid $15,000 in healthcare premium total for the year.   Can I only deduct up to 10K for the self-employed health insurance premium deduction or could I deduct up to 15K (since it is under 40K medicare wage limit)?   I cannot find any clear documentation for this, except you can deduct up to your S-corp wage amount for this.   But which wage - Box 1 in my W2 or Box 5 (Medicare wage)?

    Best answer by JulieS

    This deduction is based on your W-2 box 3 wage amount. 

     

    The instructions for Schedule 1, line 17 explain how the deduction is calculated.

     

    Click here for more. 

    1 reply

    JulieSAnswer
    March 23, 2022

    This deduction is based on your W-2 box 3 wage amount. 

     

    The instructions for Schedule 1, line 17 explain how the deduction is calculated.

     

    Click here for more. 

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    March 24, 2022

    Thank you @JulieS , very helpful!