Assume H(husband) is 100% owner of S-corp. W(wife) works for corp as w-2 employee. S(son) - not a minor- works for corp as w-2 employee. S is not an officer although I don't think that is relevant. Other employees as well.
Corp provides paid health insurance for employees. H covers other minor children through after tax payroll deduction. Family coverage is after tax payroll deduction for all employees.
According to attribution rules H, W, and S are all greater than 2% owners.
Am I correct that S must have health insurance added to his w-2 just like H?
If so, is S allowed to deduct the health insurance cost (that was added to his w-2) on line 29 of his 1040 just like H can do (remember than S only has constructive ownership not actual)? It would seem reasonable, but I wonder if it would cause an IRS letter since S would not have a Sch E or Sch C entity as part of his return.
Under above scenario, shouldn't H deduct cost of health insurance for both himself and W (corp pays for both and both are added to H's w-2 even though W is also an employee), on his(their- MFJ) 1040 line 29?
Since H's minor children are covered thru after tax payroll deduction, does this expense go to Sch A?