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Marcy, I’m completing the Law firm’s return and have
one comment. Health Insuarnce Premium paid for more than 2% shareholders. -
the health insurance premium paid for more than 2%
shareholders are not deductible on S-corp return. To be deductible, the
amount has to be reported on the Sharehoder’s W-2 and then, the
shareholder can take the health insurance deduction on their personal return.
It’s income as well as deduction on shareholder’s
personal return, so it’s zero out but it just has be to included in W-2. -
There was about $1700 for shareholders’ health
insurance in 2009. Since it is too late to include in 2009 W-2, I made
some journal entries for the tax return so that it is reported accordingly for
S-Corp return as well as for K-1 for personal return. So, you’re
okay for 2009. -
For 2010 – if you make any payments for health
insurance, just to remember to call in ADP at year end for this amount. No
actual paycheck will be issued but the amount will be reported on each shareholder’s
W-2. ADP should know what they need to do. I’m moving on to your personal return and may have
some questions. Helen HaeEun (Helen) Lee, CPA __________________________________________________________________________________________________________________________________________________________________________________________ The
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