S-Corp Owner Health Insurance Tax Strategy - Boris Musheyev, Tax Advisor

In today's video, we're going to dive into an insightful tax strategy S-Corp Owner Health Insurance Tax Strategy. Discover how to make the most of your health insurance premiums to optimize your tax deductions.
As an S-Corporation owner, you know that understanding tax nuances can be a game-changer for your financial success. But, with the often complex world of tax regulations, where do you start? That's where this guide comes in. Join us as we unfold an effective tax strategy focused solely on health insurance for S-Corporation owners.
Throughout the video, we unravel how you can leverage health insurance premiums to reduce your tax burden. From understanding the relationship between S-Corporations and health insurance to employing savvy tax strategies, we're covering it all! This is the kind of content that every S-Corporation owner and tax advisor should not miss.
Stay ahead of the curve and harness the power of strategic tax planning. Use this knowledge to ensure you're not leaving any potential deductions on the table.
Remember, it's not just about earning more, it's about retaining more of what you earn. And, with the right tax strategy in hand, you'll be well-equipped to do just that.
So, if you're an S-Corporation owner, tax advisor, or just curious about smart tax strategies, be sure to tune in!
🆓 Download FREE PDF: 7 Write Offs Every S-Corporation Business Owner MUST Know bit.ly/3DPw5UZ
☎️ Schedule your FREE Tax Advisory Session - www.TaxPlanningCall.com/
➡️If you make $10 Million or more in your business; Schedule your call here: ☎️ bit.ly/over10million
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P.S. When you sign up for Gusto, you get a $100 visa gift card 🤑
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*Disclaimer This material & presentation content is for informational and educational purposes only. This material and presentation content is designed to provide general information regarding the subject matter covered. It is not intended to serve as legal, tax, or other financial advice related to individual situations. Because each individual’s legal, tax, and financial situation is different, specific advice should be tailored to the particular circumstances. For this reason, you are advised to consult with your own attorney, accountant, tax preparer, and/or other advisor regarding your specific situation or your client’s specific situation. The information and all accompanying material are for your use and convenience only.

[@borismusheyevcpa]

Hey Everyone, Boris here. Check out some resources here (expand to see more): 🆓 Download FREE PDF: 7 Write Offs Every S-Corporation Business Owner MUST Know bit.ly/3DPw5UZ ☎ Schedule your FREE Tax Advisory Session - www.TaxPlanningCall.com/ Also, I put together some recommended videos. I strongly recommend every business owner to watch this. Just watching these alone will help you save money on taxes, RIGHT AWAY. And please, do your self a favor, get a Tax Advisor! ➡ Business Owner Pays Tax On S-Corpporation Distribution - kzbin.info/www/bejne/iqjZc515jMqYotk Watch this video to learn how to NOT pay taxes on your distributions from S-Corporation. ➡ Pass-Through Entity Taxation - kzbin.info/www/bejne/ap69aGWofLeqaNU I urge every business owner to know about this TAX. These taxes will ACTUALLY help you pay less in taxes. ➡ Home Office Tax Deduction - kzbin.info/www/bejne/n57Ho62Obcuipbs In this VIDEO, I break down how the IRS allows you to use your home office EVEN if you already have another work location. ➡ Tracey, our Tax Advisory Client, Saved over $49,000 on taxes in 2022. - kzbin.info/www/bejne/l3LKfGdmjtamrdU In this video, I break down the exact strategies we use for our clients to pay less in taxes.

[@rav227]

I am new to the S Corp world and your videos are amazing. I recommend your videos to anyone interested in understanding S Corps.

[@user-si6kf3rt3n]

This was awesome information

[@kathrynlenhardt3982]

Super helpful information, thank you!

[@hiyamoraha3142]

Great video. Thank you!

[@AbdulazizAlAzmi-pu7ns]

Your videos are very useful and provide lots of information. I have received lots of help after watching this post, please continue to share this kind of information. Thank you.

[@rchsuccesspartnersllc155]

Really great Video, Boris. Thank you

[@dayhikesneardenver]

Boris' channel is a true master class for me.

[@borismusheyevcpa]

Thank you!

[@kennethsmith6945]

Great advice and explanation. I have been in business over 30 years. Not a single Accountant, which have been more than a few, ever mentioned this to me. I don't even want to think about the amount of taxes I've overpaid.

[@borismusheyevcpa]

Ouch! Happy that this helped!

[@gabrielgranillo8885]

Kenneth I'm 100% agree with you

[@CryptoQueen8888]

Wow over 30 years?? I have been in business for 6 years and I am so grateful for youtubers like Boris!!! Back 20 or 30 years ago, there were not much information on the internet about tax strategies. Now we are so fortunate there's youtube and tik tok videos.

[@starbhavin2005]

Very Informative Video!

[@lunamorris2091]

I am learning so much from watching your videos. Thank you so much for sharing this amazing source of information. This one is quite helpful.

[@borismusheyevcpa]

thank you!

[@the4amigos80]

awesome eye opener.

[@nhlightning9804]

Great video, AS ALWAYS. Thanks.

[@borismusheyevcpa]

Thanks again!

[@dalesimpkins5560]

Love the advice

[@thomasmoriarty3111]

Great advice. I appreciate the explanation.

[@borismusheyevcpa]

Thanks for watching!

[@jonahtagle7770]

Hi Borris, I learned a lot from you. APpreciate your video content. Thank you

[@borismusheyevcpa]

thank you!

[@Sparkyc511]

I’m definitely going to ask my accountant if he’s doing this. I just started a health plan this month for me and my family. My accountant only needs to know my monthly premium?

[@A__Alajmi]

Thanks Boris

[@javiercarbonell1891]

Fantastic information

[@camilleshakir9401]

Good information to know.

[@yucatica]

I was told that if you’re going to deduct health insurance through the company for the stockholders, that you have to offer it to all employees. But you said you don’t. Can you confirm I understood this correctly? I’m in California (not sure if that makes a difference)

[@bryanmaki914]

Thank you

[@user-cz3sv3bs9s]

Thank you for creating this video! It's a helpful distillation. Disappointing to see that if a spouse has a W2 insurance, it would not be eligible for the strategy.

[@borismusheyevcpa]

Hey Everyone, Boris here. Check out some resources here (expand to see more): 🆓 Download FREE PDF: 7 Write-Offs Every S-Corporation Business Owner MUST Know bit.ly/3DPw5UZ ☎ Schedule your FREE Tax Advisory Session - www.TaxPlanningCall.com/ Also, I put together some recommended videos. I strongly recommend every business owner to watch this. Just watching these alone will help you save money on taxes RIGHT AWAY. And please, do yourself a favor, get a Tax Advisor! ➡ Business Owner Pays Tax On S-Corporation Distribution - kzbin.info/www/bejne/iqjZc515jMqYotk Watch this video to learn how to NOT pay taxes on your distributions from S-Corporation. ➡ Pass-Through Entity Taxation - kzbin.info/www/bejne/ap69aGWofLeqaNU I urge every business owner to know about this TAX. These taxes will ACTUALLY help you pay less in taxes. ➡ Home Office Tax Deduction - kzbin.info/www/bejne/n57Ho62Obcuipbs In this VIDEO, I break down how the IRS allows you to use your home office EVEN if you already have another work location. ➡ Tracey, our Tax Advisory Client, Saved over $49,000 on taxes in 2022. - kzbin.info/www/bejne/l3LKfGdmjtamrdU In this video, I break down the exact strategies we use for our clients to pay less in taxes.

[@thepakcolapcar]

hello @borismusheyev Thanks for putting this video. Very useful and easy to understand. My question is, the scenario which you are explaining in the video assumes that as an LLC/s-corp owner, I have to also have payroll set up to take W2 salary out of my s-corp? I know it may sound a silly question but still wanted to confirm

[@gekharris]

Hello Boris. Can you use this strategy for premiums on an HSA plan as well? Thank you.

[@patriciaplummer9129]

Thank you for this information. Can you explain and/or give an example of how to "Catch up" on the Health Ins Premiums paid outside of payroll that moving forward they will be paid through payroll, so that the total will be correctly reported on the W2. I know there is probably not much that can be done about the FICA that was already paid on the Gross Wages or is there? We have a payroll co. processing our payroll and they are saying they can not do the "catch up adjustment". I appreciate your help. -Lisa

[@user-vw3dc8xo5i]

Confirming I understand this. If the business is paying say $10,000 in health insurance and it is listed on the w2 and you have determined a reasonable salary as $60,000, then the actual salary paid through check or direct deposit would be $50,000. We are essentially reducing wages by the $10,000 but because it is listed as w2 earnings it is included in total wages adding up to the $60,000.

[@marcosipan7232]

correct!

[@headlibrarian1996]

Does the lack of deductibility when there is other-employer insurance only apply to premiums paid by your S-corporation, or to any reimbursement an HRA might provide, such as co-pays, deductibles, and co-insurance? It would be very useful for an HRA to reimburse costs that are not paid by the other-employer insurance.

[@wellingtonsantos92311]

Nice

[@jackko2540]

Hey Boris, I was thinking of doing this at the end of the year, as one lumpsum w2. Why would it not be the same? Can you please elaborate please? Much appreciate it. Or should I start doing that monthly? Thank you.

[@justindewey4997]

Great video Boris! Quick question...can dental insurance be combined with health insurance to take advantage of the 2% s-corp health insurance deduction?

[@garybryant8434]

Yes it can.

[@user-ef5mr8yq1i]

Can a W2 employee who also owns an S-corp use their insurance co-pays and prescription costs that the insurance does not cover as a deduction through a Health Management Account within the S-corp?

[@gsp7788]

If Im paying the premiums myself does it matter how I reimburse from the S-corp? Does it have to go through payroll or can I just write a check directly from the company?

[@pamelatester3126]

I don't understand about adding to the salary, can you give example?

[@kymng2665]

Can a MediShare type of insurance premium be used here? The regular insurance programs are too expensive.

[@pamalahmacneily5916]

Does this help self employed?. So, the business deducts the insurance?

[@nidiabatrez8625]

Does the insurance need to be purchsed through the company?

[@joleneartman4734]

Was wondering about COBRA…if I am paying Cobra as part of a former employer plan (no longer employed), can my husband include the payments as self-insured medical on his W-2 from his S Corp in which he is a more than 2% shareholder?

[@TopNaachDanceCo1]

I’m in the same situation, can I write off cobra payments?

[@andylee9973]

Hi, Can I deduct my health insurance premiums with Cover California from my corporation payroll taxes?

[@AccountingEducation979]

Good

[@sam805236]

So if the employee compensation is decided to be say $50k, and the employee pays yearly insurance premiums of say $10k, the employee compensation stays $50k? $40k base and $10k insurance premium reimbursement? Do I have this correct?

[@marcosipan7232]

Correct!

[@eddiestintshop344]

Boris, do you have a local office in Los Angeles or maybe an affiliated Tax Advisor that I can contract for my business?

[@MarkLeeTampa]

Since the W2 compensation is higher to account for premiums, is your max SEP IRA contribution (25% or up to the max) calculated by the higher box 1 number that includes the HI premiums?

[@lifejuggler3437]

Yes, SEP contribution is calculated on your gross taxable wages including HI

[@bgeerace]

Do you actually pay the employee or do you just earmark a portion of their income as the premium. For example, if you pay your self 10k per month( and premium is 2k), the gross pay would be 10k but you would state that 2k of it is premium? And the S Corp actually pays the premium?

[@paulinescocina]

Why do you say that the income included in the W-2 is not subject to FICA?

[@borismusheyevcpa]

The health insurance premiums included in a w2 are not subject to FICA

[@tonettecarrion5152]

Hi Boris.... The part about if I have a separate W2 job that offers insurance and I don't participate in their policy offering, because perhaps it's too expensive. Does it make a difference if I can prove that I have paid for my own insurance for 3+ years prior and keep renewing that plan. Meaning, if I was already self insured prior to starting the W2 portion of my income, and had my S-corp operating already, does that make a difference?

[@tonettecarrion5152]

My second question @borismusheyevcpa is....just to clarify, you are saying that I can deduct my health insurance premiums from the owner salary directly for my S-Corp filings as long as the health insurance total deducted from my salary is then added to the W2?

[@Dsin71]

If you include premiums as part of S Corp w2 wages aren't you effectively increasing your federal tax liability for your personal 1040? So in effect, you can avoid FICA/Medicare for the premiums included in Box 1, but you're still on the hook for the additional premium as wages? Or can you take a separate above the line deduction on the 1040 for the additional wages that are health insurance premiums?

[@snowranger69]

Yes above the line

[@zacharyjtheus]

Boris - Can an LLC that has elected to receive S-Corp Tax status use this Health Insurance deduction method?

[@headlibrarian1996]

Of course. The whole point of check-the-box regulations is that the formal type of the business entity isn't relevant if you make the correct tax election. An LLC or partnership electing s-corporation tax status works the same for tax purposes as a proper corporation taking the same election.

[@borismusheyevcpa]

Yes it can!

[@Elkmonger]

Tracey's health insurance costs $1500 per month???? What the hell happened to the Affordable Healthcare Act????

[@Elkmonger]

Wait....your spouse was a teacher with a bad health insurance plan. That's hard to believe. Around here the teachers have the very best healthcare plans.

[@WalkingSwole]

FYI- If you contributed to a 401k than BOX 1 will NOT be higher than box 3 & 5....

[@lifejuggler3437]

If 401k employee contributions are pre-tax yes, if ROTH it will

[@BCVideos01]

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