Question : How do health insurance tax deductions work for a member managed LLC?
I own a business (LLC) with two other people. It is only us three; we do not have any additional employees. We pay for our health insurance through our business. Based on these facts, I was wondering how much I stand to save on my personal taxes. Is this a standard write off like any other business expense or does the IRS treat health insurance differently?
- asked by prizice24
All Answers:
Answer #1
Multiple member LLC's can be taxed 3 differentways:1. As a partnership2. As a C corporation3. Asan S CorporationThe deductability of healthinsurance premiums for your LLC will depend onwhich of the 3 types of entities your LLC electedto be taxed at (the default is the partnershipform of taxation).Typically, you will be able todeduct 100% of your health insurance premiumsalthough there are some specials considerationsfor owner/officers of S Corporations who own morethan 2% of the company.If you speak with a CPA orqualified tax advisor they should be able to giveyou plenty of good tips. One thing that you maywant to mention is a medical reimbursement plan.Here is some more detail on medical reimbursementplans:
- answered by HealthQuote360.com
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