Subsidized Health Insurance Requirement

Greater than 2% shareholders are not allowed a deduction on page one of their 1040 return for health insurance acquired or paid for through their S Corporation when they are eligible to participate in a subsidized plan provided through their spouse's employer. For purposes of this rule, a subsidized plan is essentially any plan provided by the spouse's employer, regardless of the cost differential between the S Corporation's plan and the coverage available through the spouse. If you have any questions regarding this rule, please feel free to contact us.