Excellent job explaining this, THANKS!

@JasonDKnott

2 жыл бұрын

You're very welcome! Thank you for watching!

Would help a bit if this excellent decoding included how to represent on 941s

Great video! Ty! Will look for more!

@JasonDKnott

2 жыл бұрын

Glad it was helpful!

Very interesting topic. Thank you

@JasonDKnott

2 жыл бұрын

Glad you liked it!

Thanks for very important info. I have a question. If an owner has an Affordable Care Act, is it also considering to take deduction as same rule as you explained? Would you please explain to me? I appreciate you!

Jason -- GREAT video ! 2 questions: 1) As the 100% owner of S Corp stock of Texas Corp -- with 5 employees. I am 72 semi retired. 2 yrs ago wife and I moved to NM ago and still getting wages ... so now I see how to deduct health premium (meaning the medicare supplemental + Rx coverage). But for my wife does she need to have stock also and wages also to add her/deduct her health premium ? 2) re health insurance -- must this be an actual premium or could it be the actual cash out (from high deductible or self insured)? Why- because of the current sublimits and deductibles in our dental and vision ins. -- we are just swapping $... with a surcharge. Could I just create a bank account fund and tally these expenses instead of my S-Corp paying these premiums ? Many thanks again!! 🙂

Thank you for the great video. just want to make sure I understand correctly. the HI $2000 deducted from S-corp. as expense. also it didn't count as income personally as it's deducted on 1040, is it correct?

If I have an LLC taxed as S-corp and I am the SOLE employee, why bother with this deduction? Why not just pay myself a dispersement (subject to fed income tax only) and then pay for my insurance with that?

@CAPC7719

Жыл бұрын

I believe because if you obtain health insurance coverage and pay for premiums at the individual level, it may not be deductible. If structured through the S Corporation, it’s deductible and therefore your taxable pass through income is lower.

@mariastevens1388

Жыл бұрын

@@CAPC7719 If I am the sole employee of my own S-corp, say I gross 100k and I pay myself a salary of 50k. The 50k is going to be subject to FICA (15.3%) and Fed Income Tax (say, 24%). The other 50k is subject to 24% fed income tax as pass-through. If I deduct 5k in insurance, only 45k is taxed at 24% pass-through, but the 5k gets claimed as a taxable benefit, exempt from FICA, but still subject to my fed income tax rate (24%). The math is the same. I realize, though, in typing this out, that there are state income taxes that may differ, and maybe you would save on those taxes. I don't live in an income tax state, which is while this whole scheme doesn't make sense to me, and it's hard for me to see the math play out.

@CAkinCAkin

11 ай бұрын

I agree. I also am also the sole shareholder and sole employee. How is it advantageous is for me to have the Corporation “pay” for my health insurance when maybe I should simply take that same money in a distribution, pay the insurance company and then deduct what’s allowed on my 1040? Either way the corporation expenses it to me(compensation vs distribution), and I then deduct it on my personal return. Am I right? Charles Akin

From IRS.gov: "If you’re an S corporation shareholder, the policy can be in your name or the S corporation’s name and either of you can pay the premiums. If the policy is in your name and you pay the premiums, the S corporation must reimburse you and include the premiums as wage income on your Form W-2."

@lawrenceward2366

Жыл бұрын

Thanks Tony. Can you provide a reference to where you saw this?

@JongYook

6 ай бұрын

IRS notice 2008-1