NECPA in NEBRASKA Posted February 2, 2015 Report Share Posted February 2, 2015 A client brought me in their W2-s early, because I have always amended them and put their health insurance in Box 1. I was going to add it to to their FICA taxable also, this time and change the 941 before it went out. Fortunately, she brought in a 1095 and I realized that this year, they bought it on the exchange and got an advance premium. That's totally a no-no with a corporation. I wish that their broker had not told them that it wasn't a problem. My question is, do I add it to their income as I was going to or take it as distributions. This is fixed now. I had already told them to stop the withdrawals from the business account after the DOL ruling, when I thought that the insurance was a normal individual policy. I hope that I don't run into a lot of messes like this later on. I am leaning towards the distributions. Thanks for any ideas. Quote Link to comment Share on other sites More sharing options...
grmy2h Posted February 3, 2015 Report Share Posted February 3, 2015 (edited) Did they take a reasonable salary? Edited February 3, 2015 by grmy2h Quote Link to comment Share on other sites More sharing options...
NECPA in NEBRASKA Posted February 3, 2015 Author Report Share Posted February 3, 2015 Yes, both of them did. Quote Link to comment Share on other sites More sharing options...
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