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S Corp Shareholder Health Insurance Rules: How More-Than-2-Percent Owners Must Handle Premiums and Deductions
Health insurance for more-than-2-percent S corporation shareholders comes with unique IRS rules that affect how premiums are paid and reported. For the tax benefit to work, the S corporation must pay or reimburse the premiums and include them as taxable wages. When done properly, more-than-2-percent S corporation shareholders can still claim the self-employed health insurance deduction, though multi-owner S corps must consider proportional wage allocations.

Christian Wolff
Nov 192 min read
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