Estimated tax tip savings. The IRS guidance for S corporation owners explains how to safely deduct owner health insurance premiums without suffering the $36,500 Obamacare penalty.
We have been waiting a long time for the IRS to specifically explain how S corporation owners can deduct their health insurance premiums without facing the $100-per-day penalty under the Affordable Care Act (ACA).
This silence became a huge concern in November 2014 when the Department of Labor (DOL) issued a scary FAQ stating that even fully taxable reimbursements of health insurance premiums could violate the ACA rules and give rise to penalties.
But the IRS has finally spoken. And to its credit, the agency addressed the issue clearly and directly—and with great news for S corporation owners! (Granted, it would have been nice to get this information a year or two ago.)
The IRS announced that ... Log in to view full article.