2% Shareholder on marketplace insurance

Technical topics regarding tax preparation.
#1
evboat  
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Nebraska
This seems like something that should have been settled by now but I'm looking for more guidance. Can a 100% S-corp shareholder on the marketplace put his net out of pocket health insurance premiums on his w-2? For example his premiums are say 13,000 and market assistance is 5,000. Would it be appropriate to put the $8,000 on his w-2? I've read this arrangement is not allowed because it becomes an "employer plan" and thus not marketplace eligible but I can't find any authority on this. Thanks in advance for any guidance.

(I realized the net premiums would only be determined the following year when the 1040 is filed but my basic question is just if the whole idea of putting it on the w-2 should be thrown out)
 

#2
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You put the amount paid in cash via reimbursement from the s-corp on the W-2. On the 1040, any credit payback increases the SEHI deduction any additional credit decreases the deduction.
~Captcook
 

#3
evboat  
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So is it your understanding that the S-corp paying the premiums doesn't in itself make them ineligible to be on the marketplace?
 

#4
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I've found most marketplaces won't cash a check from a business, which has nothing to do with the propriety of whether the business can make such a payment.

An s-corp is fully able to pay for or reimburse for the health insurance of it's shareholder/employees.
~Captcook
 

#5
Noobie  
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Jacksonville, FL
Agree with Capt, those premiums qualify to be reimbursed. We do it all the time.
 


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