Does your business file as an S Corporation?

If so, you may be eligible to deduct your health insurance premiums as a business expense — but S-Corp shareholders have to follow specific IRS rules to do it correctly.

For shareholder-employees who own more than 2% of the company, health insurance premiums must be paid or reimbursed by the business and included in your payroll in order to qualify for the deduction. This process is a bit different from how you handle insurance for non-owner employees, and setting it up properly ensures you receive the full tax benefit while staying compliant.

If you’re not sure how to handle this or haven’t set it up yet, please reach out to us before December. We’ll help you make sure your health insurance is processed correctly so you can claim this valuable deduction for 2025 and avoid any surprises at tax time.