Hey Everyone, Boris here. Check out some resources here (expand to see more): 🆓 Download FREE PDF: 7 Write Offs Every S-Corporation Business Owner MUST Know bit.ly/3DPw5UZ ☎ Schedule your FREE Tax Advisory Session - www.TaxPlanningCall.com/ 👉 Make sure you SUBSCRIBE so you do not miss out on future tax-saving tips and strategies - bit.ly/3AXHUtM Also, I put together some recommended videos. I strongly recommend every business owner to watch this. Just watching these alone will help you save money on taxes, RIGHT AWAY. And please, do your self a favor, get a Tax Advisor! ➡ Business Owner Pays Tax On S-Corpporation Distribution - th-cam.com/video/TwvBjCWeelw/w-d-xo.html Watch this video to learn how to NOT pay taxes on your distributions from S-Corporation. ➡ Pass-Through Entity Taxation - th-cam.com/video/4mZ72rGRw2s/w-d-xo.html I urge every business owner to know about this TAX. These taxes will ACTUALLY help you pay less in taxes. ➡ Home Office Tax Deduction - th-cam.com/video/imdrzX8fooY/w-d-xo.html In this VIDEO, I break down how the IRS allows you to use your home office EVEN if you already have another work location. ➡ Tracey, our Tax Advisory Client, Saved over $49,000 on taxes in 2022. - th-cam.com/video/aAgK40Yqsws/w-d-xo.html In this video, I break down the exact strategies we use for our clients to pay less in taxes.
Tax laws can be so complex, and it’s super helpful to break them down like this. Understanding how different policies can impact our finances is crucial for making informed decisions.
Making profitable investments during this time of political change can be risky without that insight. For me, working with an adviser is the best first step to navigate these complexities and make informed choices.
I think having an investment advisor is the way to go. I've been with one because I lack the expertise for the market. I made over $490K during the recent dip, highlighting that there's more to the market than we average folks know.
Great advice and explanation. I have been in business over 30 years. Not a single Accountant, which have been more than a few, ever mentioned this to me. I don't even want to think about the amount of taxes I've overpaid.
Wow over 30 years?? I have been in business for 6 years and I am so grateful for youtubers like Boris!!! Back 20 or 30 years ago, there were not much information on the internet about tax strategies. Now we are so fortunate there's youtube and tik tok videos.
I was told that if you’re going to deduct health insurance through the company for the stockholders, that you have to offer it to all employees. But you said you don’t. Can you confirm I understood this correctly? I’m in California (not sure if that makes a difference)
Thank you for creating this video! It's a helpful distillation. Disappointing to see that if a spouse has a W2 insurance, it would not be eligible for the strategy.
Great video Boris! Quick question...can dental insurance be combined with health insurance to take advantage of the 2% s-corp health insurance deduction?
I’m definitely going to ask my accountant if he’s doing this. I just started a health plan this month for me and my family. My accountant only needs to know my monthly premium?
Was wondering about COBRA…if I am paying Cobra as part of a former employer plan (no longer employed), can my husband include the payments as self-insured medical on his W-2 from his S Corp in which he is a more than 2% shareholder?
If Im paying the premiums myself does it matter how I reimburse from the S-corp? Does it have to go through payroll or can I just write a check directly from the company?
hello @borismusheyev Thanks for putting this video. Very useful and easy to understand. My question is, the scenario which you are explaining in the video assumes that as an LLC/s-corp owner, I have to also have payroll set up to take W2 salary out of my s-corp? I know it may sound a silly question but still wanted to confirm
Confirming I understand this. If the business is paying say $10,000 in health insurance and it is listed on the w2 and you have determined a reasonable salary as $60,000, then the actual salary paid through check or direct deposit would be $50,000. We are essentially reducing wages by the $10,000 but because it is listed as w2 earnings it is included in total wages adding up to the $60,000.
Thank you for this information. Can you explain and/or give an example of how to "Catch up" on the Health Ins Premiums paid outside of payroll that moving forward they will be paid through payroll, so that the total will be correctly reported on the W2. I know there is probably not much that can be done about the FICA that was already paid on the Gross Wages or is there? We have a payroll co. processing our payroll and they are saying they can not do the "catch up adjustment". I appreciate your help. -Lisa
Thank you Boris quick question i am the owner 100 percent Scorp can I report on w2 then ask my scorp to pay all of my medical insurance same also my retirement fidelity account can I pay my retirement from my paycheck then get match my scorp
So if the employee compensation is decided to be say $50k, and the employee pays yearly insurance premiums of say $10k, the employee compensation stays $50k? $40k base and $10k insurance premium reimbursement? Do I have this correct?
@@marcosipan7232 I posted this above: How is she saving $7,925 of income tax? You keep saying that the $18,915 is a DEDUCTION from income tax, but how can it be when its reported as wages on the W2? It might be saving you taxes on the pass through income but you are just paying it on the wages side of things. Really all you are saving are the SS and MEDICARE taxes. Which is great but its NOT $8,000 in income tax savings.
Does the lack of deductibility when there is other-employer insurance only apply to premiums paid by your S-corporation, or to any reimbursement an HRA might provide, such as co-pays, deductibles, and co-insurance? It would be very useful for an HRA to reimburse costs that are not paid by the other-employer insurance.
Hey Boris, I was thinking of doing this at the end of the year, as one lumpsum w2. Why would it not be the same? Can you please elaborate please? Much appreciate it. Or should I start doing that monthly? Thank you.
Do you actually pay the employee or do you just earmark a portion of their income as the premium. For example, if you pay your self 10k per month( and premium is 2k), the gross pay would be 10k but you would state that 2k of it is premium? And the S Corp actually pays the premium?
Can a W2 employee who also owns an S-corp use their insurance co-pays and prescription costs that the insurance does not cover as a deduction through a Health Management Account within the S-corp?
Since the W2 compensation is higher to account for premiums, is your max SEP IRA contribution (25% or up to the max) calculated by the higher box 1 number that includes the HI premiums?
Hi Boris.... The part about if I have a separate W2 job that offers insurance and I don't participate in their policy offering, because perhaps it's too expensive. Does it make a difference if I can prove that I have paid for my own insurance for 3+ years prior and keep renewing that plan. Meaning, if I was already self insured prior to starting the W2 portion of my income, and had my S-corp operating already, does that make a difference?
My second question @borismusheyevcpa is....just to clarify, you are saying that I can deduct my health insurance premiums from the owner salary directly for my S-Corp filings as long as the health insurance total deducted from my salary is then added to the W2?
WHO WILL PAY CAN I EXCLUSIVELY DIDUCT PART OF EMPLOYER CONTRIBUTION THEN REPORT IN BOX 1 W2 OR I HAVE TO CONTRIBUTE PART OF MY EMPLOYEE WEEKLY CHECK AS WELL..
If you include premiums as part of S Corp w2 wages aren't you effectively increasing your federal tax liability for your personal 1040? So in effect, you can avoid FICA/Medicare for the premiums included in Box 1, but you're still on the hook for the additional premium as wages? Or can you take a separate above the line deduction on the 1040 for the additional wages that are health insurance premiums?
Of course. The whole point of check-the-box regulations is that the formal type of the business entity isn't relevant if you make the correct tax election. An LLC or partnership electing s-corporation tax status works the same for tax purposes as a proper corporation taking the same election.
Wait....your spouse was a teacher with a bad health insurance plan. That's hard to believe. Around here the teachers have the very best healthcare plans.
How is she saving $7,925 of income tax? You keep saying that the $18,915 is a DEDUCTION from income tax, but how can it be when its reported as wages on the W2? It might be saving you taxes on the pass through income but you are just paying it on the wages side of things. Really all you are saving are the SS and MEDICARE taxes. Which is great but its NOT $8,000 in income tax savings.
Hey Everyone, Boris here. Check out some resources here (expand to see more):
🆓 Download FREE PDF: 7 Write Offs Every S-Corporation Business Owner MUST Know bit.ly/3DPw5UZ
☎ Schedule your FREE Tax Advisory Session - www.TaxPlanningCall.com/
👉 Make sure you SUBSCRIBE so you do not miss out on future tax-saving tips and strategies - bit.ly/3AXHUtM
Also, I put together some recommended videos. I strongly recommend every business owner to watch this. Just watching these alone will help you save money on taxes, RIGHT AWAY. And please, do your self a favor, get a Tax Advisor!
➡ Business Owner Pays Tax On S-Corpporation Distribution - th-cam.com/video/TwvBjCWeelw/w-d-xo.html
Watch this video to learn how to NOT pay taxes on your distributions from S-Corporation.
➡ Pass-Through Entity Taxation - th-cam.com/video/4mZ72rGRw2s/w-d-xo.html
I urge every business owner to know about this TAX. These taxes will ACTUALLY help you pay less in taxes.
➡ Home Office Tax Deduction - th-cam.com/video/imdrzX8fooY/w-d-xo.html
In this VIDEO, I break down how the IRS allows you to use your home office EVEN if you already have another work location.
➡ Tracey, our Tax Advisory Client, Saved over $49,000 on taxes in 2022. - th-cam.com/video/aAgK40Yqsws/w-d-xo.html
In this video, I break down the exact strategies we use for our clients to pay less in taxes.
Tax laws can be so complex, and it’s super helpful to break them down like this. Understanding how different policies can impact our finances is crucial for making informed decisions.
Making profitable investments during this time of political change can be risky without that insight. For me, working with an adviser is the best first step to navigate these complexities and make informed choices.
I think having an investment advisor is the way to go. I've been with one because I lack the expertise for the market. I made over $490K during the recent dip, highlighting that there's more to the market than we average folks know.
Hmmm this is quite interesting, Please can you leave the info of your investment advisor here? I’m in dire need for one.
Nicole Anastasia Plumlee can't divulge much. Most likely, the internet should have her basic info, you can research if you like.
I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get.
I am new to the S Corp world and your videos are amazing. I recommend your videos to anyone interested in understanding S Corps.
Great advice and explanation. I have been in business over 30 years. Not a single Accountant, which have been more than a few, ever mentioned this to me. I don't even want to think about the amount of taxes I've overpaid.
Ouch! Happy that this helped!
Kenneth I'm 100% agree with you
Wow over 30 years?? I have been in business for 6 years and I am so grateful for youtubers like Boris!!! Back 20 or 30 years ago, there were not much information on the internet about tax strategies. Now we are so fortunate there's youtube and tik tok videos.
Boris this point is invaluable and will save me thousands of dollars a year in taxes going forward.
Hello Boris. Can you use this strategy for premiums on an HSA plan as well? Thank you.
Boris' channel is a true master class for me.
Thank you!
Thank you Boris!! Your knowledge of S-corps is very helpful.
I am learning so much from watching your videos. Thank you so much for sharing this amazing source of information. This one is quite helpful.
thank you!
This was exactly what i was looking for. Thank you for the information!
Very informative in everyday language. Thank you😊
I was told that if you’re going to deduct health insurance through the company for the stockholders, that you have to offer it to all employees. But you said you don’t. Can you confirm I understood this correctly? I’m in California (not sure if that makes a difference)
This was a really good video thank you!
Thank you for creating this video! It's a helpful distillation. Disappointing to see that if a spouse has a W2 insurance, it would not be eligible for the strategy.
Really great Video, Boris. Thank you
Very good courses!
Great video Boris! Quick question...can dental insurance be combined with health insurance to take advantage of the 2% s-corp health insurance deduction?
Yes it can.
Premium for dental can be added as well, right?
Super helpful information, thank you!
Incredibly helpful
I’m definitely going to ask my accountant if he’s doing this. I just started a health plan this month for me and my family. My accountant only needs to know my monthly premium?
thank you
Very Informative Video!
Was wondering about COBRA…if I am paying Cobra as part of a former employer plan (no longer employed), can my husband include the payments as self-insured medical on his W-2 from his S Corp in which he is a more than 2% shareholder?
I’m in the same situation, can I write off cobra payments?
Great video. Thank you!
awesome eye opener.
If Im paying the premiums myself does it matter how I reimburse from the S-corp? Does it have to go through payroll or can I just write a check directly from the company?
Thank you for the advice.
Thx for awesome content.
hello @borismusheyev
Thanks for putting this video. Very useful and easy to understand.
My question is, the scenario which you are explaining in the video assumes that as an LLC/s-corp owner, I have to also have payroll set up to take W2 salary out of my s-corp? I know it may sound a silly question but still wanted to confirm
Hi Borris, I learned a lot from you. APpreciate your video content. Thank you
thank you!
This was awesome information
Confirming I understand this. If the business is paying say $10,000 in health insurance and it is listed on the w2 and you have determined a reasonable salary as $60,000, then the actual salary paid through check or direct deposit would be $50,000. We are essentially reducing wages by the $10,000 but because it is listed as w2 earnings it is included in total wages adding up to the $60,000.
correct!
Thank you
Thank you for this information. Can you explain and/or give an example of how to "Catch up" on the Health Ins Premiums paid outside of payroll that moving forward they will be paid through payroll, so that the total will be correctly reported on the W2. I know there is probably not much that can be done about the FICA that was already paid on the Gross Wages or is there? We have a payroll co. processing our payroll and they are saying they can not do the "catch up adjustment". I appreciate your help. -Lisa
I have this question too @borismusheyevcpa
Thank you Boris quick question i am the owner 100 percent Scorp can I report on w2 then ask my scorp to pay all of my medical insurance same also my retirement fidelity account can I pay my retirement from my paycheck then get match my scorp
Does the insurance need to be purchsed through the company?
Thanks Boris
I don't understand about adding to the salary, can you give example?
Fantastic information
So if the employee compensation is decided to be say $50k, and the employee pays yearly insurance premiums of say $10k, the employee compensation stays $50k? $40k base and $10k insurance premium reimbursement? Do I have this correct?
Correct!
@@marcosipan7232 I posted this above: How is she saving $7,925 of income tax? You keep saying that the $18,915 is a DEDUCTION from income tax, but how can it be when its reported as wages on the W2? It might be saving you taxes on the pass through income but you are just paying it on the wages side of things. Really all you are saving are the SS and MEDICARE taxes. Which is great but its NOT $8,000 in income tax savings.
can a catch-up be done when the year is over? example; catch-up 2023 thou we in 2024, then issue a corrected w-2
Can a MediShare type of insurance premium be used here? The regular insurance programs are too expensive.
Great advice. I appreciate the explanation.
Thanks for watching!
Does this help self employed?.
So, the business deducts the insurance?
Спасибо
Thank you 🙏🏾
Great video, AS ALWAYS. Thanks.
Thanks again!
Does the lack of deductibility when there is other-employer insurance only apply to premiums paid by your S-corporation, or to any reimbursement an HRA might provide, such as co-pays, deductibles, and co-insurance? It would be very useful for an HRA to reimburse costs that are not paid by the other-employer insurance.
Hey Boris, I was thinking of doing this at the end of the year, as one lumpsum w2. Why would it not be the same? Can you please elaborate please? Much appreciate it. Or should I start doing that monthly? Thank you.
Do you actually pay the employee or do you just earmark a portion of their income as the premium. For example, if you pay your self 10k per month( and premium is 2k), the gross pay would be 10k but you would state that 2k of it is premium? And the S Corp actually pays the premium?
Hi,
Can I deduct my health insurance premiums with Cover California from my corporation payroll taxes?
Love the advice
Can a W2 employee who also owns an S-corp use their insurance co-pays and prescription costs that the insurance does not cover as a deduction through a Health Management Account within the S-corp?
Why do you say that the income included in the W-2 is not subject to FICA?
The health insurance premiums included in a w2 are not subject to FICA
Good information to know.
Boris, do you have a local office in Los Angeles or maybe an affiliated Tax Advisor that I can contract for my business?
Since the W2 compensation is higher to account for premiums, is your max SEP IRA contribution (25% or up to the max) calculated by the higher box 1 number that includes the HI premiums?
Yes, SEP contribution is calculated on your gross taxable wages including HI
Hi Boris.... The part about if I have a separate W2 job that offers insurance and I don't participate in their policy offering, because perhaps it's too expensive. Does it make a difference if I can prove that I have paid for my own insurance for 3+ years prior and keep renewing that plan. Meaning, if I was already self insured prior to starting the W2 portion of my income, and had my S-corp operating already, does that make a difference?
My second question @borismusheyevcpa is....just to clarify, you are saying that I can deduct my health insurance premiums from the owner salary directly for my S-Corp filings as long as the health insurance total deducted from my salary is then added to the W2?
WHO WILL PAY CAN I EXCLUSIVELY DIDUCT PART OF EMPLOYER CONTRIBUTION THEN REPORT IN BOX 1 W2 OR I HAVE TO CONTRIBUTE PART OF MY EMPLOYEE WEEKLY CHECK AS WELL..
If you include premiums as part of S Corp w2 wages aren't you effectively increasing your federal tax liability for your personal 1040? So in effect, you can avoid FICA/Medicare for the premiums included in Box 1, but you're still on the hook for the additional premium as wages? Or can you take a separate above the line deduction on the 1040 for the additional wages that are health insurance premiums?
Yes above the line
If you increase box 1 of w2 and then you deduct it…isn’t that just a wash? So what the point to doing this?
Boris - Can an LLC that has elected to receive S-Corp Tax status use this Health Insurance deduction method?
Of course. The whole point of check-the-box regulations is that the formal type of the business entity isn't relevant if you make the correct tax election. An LLC or partnership electing s-corporation tax status works the same for tax purposes as a proper corporation taking the same election.
Yes it can!
Hey,
Where is your office?
Hey Eva! New York but we service all states. You can book a call at www.TaxPlanningCall.com
- Boris
Nice
Tracey's health insurance costs $1500 per month???? What the hell happened to the Affordable Healthcare Act????
Good
FYI- If you contributed to a 401k than BOX 1 will NOT be higher than box 3 & 5....
If 401k employee contributions are pre-tax yes, if ROTH it will
Wait....your spouse was a teacher with a bad health insurance plan. That's hard to believe. Around here the teachers have the very best healthcare plans.
How is she saving $7,925 of income tax? You keep saying that the $18,915 is a DEDUCTION from income tax, but how can it be when its reported as wages on the W2? It might be saving you taxes on the pass through income but you are just paying it on the wages side of things. Really all you are saving are the SS and MEDICARE taxes. Which is great but its NOT $8,000 in income tax savings.
Money lenders with small hats