title>Tax Guru-Ker$tetter Letter Wizard Animation

                 

Tax Guru-Ker$tetter Letter
Sunday, February 05, 2006
 
Health Insurance

Q:

Subject: Tax Question
 
What are the rules governing health insurance premiums for the single shareholder of an S Corp who is also an employee?  Is it considered taxable income on the W-2?

A:

Any person owning more than 2% of the S corp stock must report the health insurance premiums as taxable wages on his/her W-2. 

As I've mentioned countless times, that is not the case for shareholders of C corps.

Your personal tax advisor can give you more detailed assistance with this.

Kerry Kerstetter

 



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