Feb 6, 2026 · One of the most frequently misunderstood areas of S corporation taxation involves the treatment of health insurance premiums paid on behalf of shareholders who own more than two …

Dec 16, 2025 · These items are deductible by the corporation and are not included in the shareholder’s taxable income. The rules concerning 2% shareholders generally do not impact the tax treatment of …

Health and accident insurance premiums paid on behalf of a greater than 2-percent S corporation shareholder-employee are deductible by the S corporation and reportable as wages on the …

May 9, 2025 · Some benefits are fully taxable to these shareholders, such as health insurance and group-term life insurance premiums. Others, like de minimis perks or on-site meals, may be excluded …

5 days ago · The 2% rule for S Corp owners unlocks powerful tax advantages most solopreneurs miss. As a more-than-2% shareholder, you can turn health insurance premiums into double deductions, …

Health insurance premiums paid by an S corporation for 2% shareholders (and their families) are taxable and must be included in their wages for income tax purposes. However, they are exempt from Social …

You can still claim the self-employed health insurance deduction if you pay premiums yourself, as long as the coverage is in your name or the S-Corp’s name and you’re a >2% shareholder.

Mar 4, 2025 · Can S Corps deduct 2% shareholder health insurance premiums? Yes, health insurance premiums your S Corp pays on behalf of 2% shareholder-employees are deductible by the S …

Health insurance premiums the corporation pays on their behalf must be included in the shareholder’s wages for income tax purposes (but not FICA/FUTA), and the shareholder may be able to claim an …

Nov 3, 2025 · Unlike regular employees, these shareholders cannot receive health insurance as a tax-free fringe benefit. Instead, any premiums paid on their behalf must be reported as taxable wages.