Originally Posted by zzmonty
Are the health insurance premiums and H S A payments considered a business expense on the Schedule C Line 14 or does this get added to Line 29 on the 1040 form?
A Sch Cof 1040 is required for any business that is a sole proprietorship , or SMLLC,a one-owner business that is not incorporated,i.e., S- or C corp. the HSA contribution made by the corporation is deductible by the corporation, and it is NOT taxable income to the shareholder-employee. If you pay from the C-Corp, then the C-Corp's taxable income is reduced by the amount of the HSAYou must identify on the W-2 the contributions made by the corp;. The corporation’s HSA contribution is a tax-free fringe benefit to the employee that is reported on the employee’s Form W-2 in box 12, using the code “W.” While you, the employee-SH , receive a tax free fringe benefit, your Corp deducts the contributions to the HSA as an employee benefit program expense