I am confused as to the tax treatment of Health Insurance Premiums that Businesses would pay on behalf of their owners. How to treat such premiums for each of these business types - Sole Proprietor, Partnership, S Corporation, LLC and C Corporation? Are they deductible or not? Thanks in advance for you input.
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Sole Prop: Deduct on line 29 of 1040 Part: Distribute earnings. Deduct on line 29 of 1040 S Corp: Charge to W-2 wages without SS deductions. Deduct on line 29 of 1040 C Corp: Deduct as expense. Employee gets no further deduction. Final net tax outcome exactly the same for all of these, if they qualify. ed
Thanks Ed.
Let's take this one step further - can the said health insurance premiums be expensed on the Income Statement (on the books) of each of the types of Businesses, ie. sole proprietor, partnership, LLC, S-Corp and C-Corp?
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