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Tax questions that I could use some help with. I have an S-Corp owner who has an ill wife that caused them to reach the top rate table. They have two dependents in which they pay $500 for them. There are savings to going individual with the kids, but I need to know the tax consquences. I realize they would pay FICA on the individual premium for the kids, but would they also have to pay income taxes. I can't tell if it fits the description of the "Self Employed Health Insurance Deduction."
I know it would be an above the line deduction if the owner had an individual plan, but I don't know know if it works if the owner is on the group plan and the dependents are on their own. Anyone know?
I know it would be an above the line deduction if the owner had an individual plan, but I don't know know if it works if the owner is on the group plan and the dependents are on their own. Anyone know?