Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 11-17-2015, 08:56 AM
Junior Member
 
Join Date: Nov 2015
Posts: 1
Can a C corp pay my medicare premium?

My wife and I own a C corp registered in Virginia. I'm the sole employee. In a few months I'm going to start Medicare. Can my C corp pay both the Medicare premium as well as any supplemental health insurance to cover what Medicare does not pay?

In other words are they 100% deductible to the corporation?

Thank you,

Andy



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 11-17-2015, 10:14 PM
Moderator
 
Join Date: Oct 2010
Posts: 4,838
My wife and I own a C corp registered in Virginia. I'm the sole employee. In a few months I'm going to start Medicare. Can my C corp pay both the Medicare premium as well as any supplemental health insurance to cover what Medicare does not pay?=====>>In general,
when you form your C corp to own and operate your business, you’ll work as its employee. As you formed a regular “C” corp, the corp can provide you with health insurance as an employee fringe benefit and deduct the cost as a business expense. And you don’t have to pay any tax on the amount of the insurance premiums because they qualify as a tax-free employee fringe benefit.


In other words are they 100% deductible to the corporation?==>Correct;your corporate bylaws MAY state that the corp, th e ER, will pay health ins premiums and all out of pocket medical costs for salaried EE aslongas the corp pays for this for all of its EE. C Corp can deduct health insurance premiums for an individual health plan that the EE has procured on his or her own. C corp must typically pay for at least half of the coverage, while the EE contributes the remainder. You, as an EE, do not pay taxes on money the ER spends on your behalf, but the ER can take a tax deduction on any premiums it pays to provide health coverage for its EE to include ER-EE. If theER sponsors a plan and pays the premiums, theER can deduct the cost of premiums as an ordinary business expense.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Repaying Premium Assistance (Insurance)? Angeleno85 For 2014 1 09-02-2015 12:33 PM
Health Insurance Premium deduction seth1 C-Corporation 0 05-13-2013 09:50 PM
What will be the basic Medicare Part B Premium in 2012? TaxGuru Retirement Planning 0 11-16-2011 06:58 PM
Medicare Part B deductibility 2%S Corp shareholder A Renne S-Corporation 0 04-20-2009 06:28 PM
Health Insurance premium grod Itemized Deductions 1 03-04-2008 11:26 AM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning