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Avoid This S Corporation Health-Insurance Tax-Deduction Mistake

April 13, 2023

“Avoid This S Corporation Health-Insurance
Tax-Deduction Mistake”

To get my complete, FREE article
with all the details…

If you own more than 2% of an S corporation, you have to follow special rules in order to legally deduct your health-insurance premiums.

These demanding health-insurance rules can also apply to family members who work in your business but don’t own a single share of stock.

Don’t let these rules come as a shock
and cost your family money.

Consider this: Let’s say you own 100% of your S corporation. Your 30-year-old daughter (or other family member) works for your S corporation. She owns no stock. Your S corporation covers her with a group health policy.

Did your S corporation claim an insurance deduction for the cost of the premiums attributable to your daughter?

How you answer this question
can have huge implications
for your tax bill.

You see, your S corporation must treat the cost of your daughter’s health insurance as W-2 wages.

This is bad news It means you’ll wind up with a zero deduction for your S corporation and a lost health-insurance deduction for your daughter.

How to fix this mess?

Let’s start by getting a Form 1040 tax deduction for your daughter/family member. And then follow the simple steps outlined in my new article.

My fact-filled article will make everything perfectly clear. That’s a promise.

CLICK HERE and read my
completely new article titled:

“Avoid This S Corporation Health-Insurance
Tax-Deduction Mistake”

Filed Under: Choice of entity, Corporations, Employees, Fringe Benefits, Payroll, Tax Planning

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