Elk Grove, CA asked in Tax Law and Business Law for California

Q: My husband and I have an s-corp in CA and we are the only officers in our s-corp.

Are our medical expenses considered business expense and can be deductible for the s-corp?

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2 Lawyer Answers
D. Mathew Blackburn
D. Mathew Blackburn
Answered
  • Tax Law Lawyer
  • Englewood, CO

A: No, not the expenses. Premiums are deductible.

1 user found this answer helpful

Jeffrey Anton Collins
Jeffrey Anton Collins
Answered
  • Tax Law Lawyer
  • Naperville, IL

A: I agree with Attorney Blackburn that the premiums may be deducted. The expenses may be deductible as compensation to the recipient. However, this is not advised because they become subject to payroll taxes at both the company and individual level. This treatment may be more helpful when there are additional officers / owners.

Since you two are the only owners, those expenses CAN be deducted, but SHOULDN'T be.

1 user found this answer helpful

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