Newly formed single member LLC, with S election to begin January 1. One owner and sole employee. Prior business activity was as a sole proprietor.
Owner/employee is retired and receives health insurance from their former employer, with the former employer paying a portion. Subsidized health insurance, not eligible for SE health insurance subtraction.
Can the S Corp reimburse the owner's premiums for the policy? After adding it to Box 1 of the W2, can it be subtracted or does this still fail as subsidized insurance?
Separate question: Can the S Corp pay for the owner and spouse's Medicare premiums? Spouse will be eligible in the next few months and the owner about 6 months after that.
Good news is the client is actually asking questions before taking action. How refreshing.