Page 16 of the Instructions for Form 1120S states: “Report amounts paid for health insurance coverage for a more than 2% shareholder (including that shareholder’s spouse, dependents, and any children under age 27 who are not dependents) as an information item in box 14 of that shareholder’s Form W-2.

Can owners of an S-Corp participate in a Section 125 plan?

More-than-2% shareholders of an “S-Corp” cannot participate in a cafeteria plan, as they are treated by Code 125 the same as partners and are considered self-employed. Unlike the other business types, spouses, children, parents, and grandparents of more-than-2% shareholders may NOT participate in the cafeteria plan.

Where does health insurance for an officer of an S corp go on 1120s?

Where does health insurance for an officer of an s corp go on 1120s and K-1? Example: Wages 50,000, health insurance I am working on an 1120S. Which box on the company summary I am working on an 1120S. Which box on the company summary W2 do I put in line 7 and 8 on the 1120S?

How are health insurance premiums reported for S corporation?

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 shareholder-employee’s Form W-2, subject to income tax withholding.

Can a 1120s be allocated to another class of stock?

Amounts for an 1120S should not be allocated to the shareholders in a manner different than the shareholder’s percentage of ownership. This would create a second class of stock, thus nullifying the S-Corporation election.

Can a shareholder claim health insurance on a 1040?

A more-than-2% shareholder may be allowed to deduct such amounts on Schedule 1 (Form 1040 or 1040-SR), line 16. To find out if the shareholder can claim this deduction, see Self-Employed Health Insurance Deduction in chapter 6 of Pub. 535, Business Expenses.”