Can you deduct Long Term Care Preimums the same as Health Insurance for the greater than 2% Shareholder.
Answer is .... sort of....
The way the math works…….
Let’s say LTC is $6,000
Age based LTC for age 61 to 70 is $3,900
Step 1: The S Corp deducts the entire $6k (even if the Shareholder pays it personally).
Step 2: Box 1 on the W2 is increased by $6k.
Step 3: Box 14 on the W2 includes the aged based allowable amount $3.9k.
So, steps 1 and 2 cancel each other.
Step 3 allows 100% of the allowable deduction ($3.9k) to be deducted on the front of the individual tax return, same as regular health insurance.
The Internal Revenue Service announced the selection of 10 new members for the Information Reporting Program Advisory Committee (IRPAC).
“Members of IRPAC provide industry perspective and recommendations that assist the IRS in making decisions about third-party information reporting, which is important to sound tax administration,” said IRS Commissioner Doug Shulman.
The new appointees will join 14 returning members who are in the second or third year of their three-year terms.
Lonnie Young of Young & Company, LLC is one of the 10 selected in the United States! Click here for the complete article
If the IRS trusts his opinion, perhaps you can too!