Can I reimburse myself health insurance costs from my company?
August 1, 2008 by admin
Filed under Questions and Answers
Jackie S asked:
We used to have individual health insurance, and I would pay for it out of my own company (an S Corp). When we got insurance through my husband’s employer, I stopped reimbursing myself.
He is paid for by the company, and then it costs extra to add myself and our child.
We used to have individual health insurance, and I would pay for it out of my own company (an S Corp). When we got insurance through my husband’s employer, I stopped reimbursing myself.
He is paid for by the company, and then it costs extra to add myself and our child.
I was just going to deduct health insurance premiums on our Sch A, but we don’t have enough other medical expenses to meet the limit.
Is it ligit to go ahead and reimburse myself the amount that it cost for the health insurance? Then it would be a business expense. Thanks.
Create a video blog…instantly.
v b on Sat, 2nd Aug 2008 3:30 am
No.
The insurance through your husband’s employer does not meet the test of having been established through the S-corp.
taxreff on Tue, 5th Aug 2008 1:29 pm
Once again, VB gives the correct answer. While the IRS has recently expanded the definition of the “established in the company name” standard, since the policy comes from your husband’s employer it still does not qualify.
As a side note, officer health insurance cannot be directly deducted by an S corporation for more than 2% owners. There is a convoluted method used to get the deduction, but again you would not qualify.