 in which case you might have to understand some more about this flow through entities and the consequences on things like health insurance. So health insurance premiums paid or reimbursed by the S Corporation are shown as wages on the form W-2 because S Corporation still has to pay wages in the form of W-2s to the employees. So the insurance plan must be established under your business. Your personal services must have been a material income producing factor in the business. If you are filing Schedule C or F, the policy can be either in your name or in the name of the business. That often times is like a sticking point that can be a little bit scary in terms of setting up the policy, what's the name that we should be putting on the policy to make sure that we're in compliance with our tax benefits. So if you are a partner, the policy can be either in your name or in the name of the partnership. You can either pay the premiums yourself or your partnership can pay them and report them as guaranteed payments. If the policy is in your name and you pay the premiums yourself, the partnership must reimburse you and report the premiums as guaranteed payments. This is getting a little bit into the weeds in terms of the bookkeeping for different types of entities, which I don't want to go into in too much detail at this point in time, mainly focusing in on a Schedule C sole proprietor business kind of situation. So if you are a more than 2% shareholder in an S corporation, the policy can be either in your name or in the name of the S corporation. So you can either pay the premiums yourself or the S corporation can pay them and report them as wages. So you have this kind of interplay in the situation with the S corporation note that instead of having the self-employment tax basically flow through to you, so you have to calculate self-employment tax, you're going to have to pay the social security and Medicare by basically treating yourself as an employee of the S corporation. And then you'll, and so that means you're going to have a W2 to yourself, basically kind of situation, which is a little bit different than possibly you would see obviously in a Schedule C where you don't pay yourself a W2 or even in a partnership or possibly again you may not pay yourself a W2, although you might pay other people, employees, W2s in those cases. So if the policy is in your name and you pay the premiums yourself, the S corporation must reimburse you. So you can deduct the premiums only if the S corporation reports the premiums paid or reimbursed as wages in box one of your form W2 in 2023 and you also report the premium payments or reimburses as wages on form 1040 and 1040 SR. So in those situations you can see that these pass-through entities are more complex in many ways, the S corporation possibly being more complex in some ways than even like a partnership type of situation. So these are things that you have to weigh out when you're deciding if you want to be an S corporation versus a sole proprietorship for example. So but if you were also eligible to participate in any subsidized health plan maintenance by your or your spouse's employer for any month or part of a month in 2023 amounts paid for health insurance coverage for that month can't be used to figure the deduction. Also, if you were eligible for any month or part of a month to participate in any subsidized health plan maintained by the employer of either your dependent or your child who was under age 27 at the end of 2023 don't use amounts paid for coverage for that month to figure the deduction. So now we've got this kind of interplay this kind of confusing interplay in terms of well what if you're in a situation where you have access to health insurance through an employer because you can see how this kind of grew out. What happened here is you're saying well health insurance typically is tied to an employee or employee situation the employee possibly having more favorable health care through the employer in part due to having group plans available and then well what if people don't have the capacity to participate in the group plans because they're self-employed well then the IRS wants to make this kind of deduction situation well what if you have you have the possibility to have access to an employer kind of plan will that restrict you from from basically doing your own health insurance and deducting it see these are the questions that you want to you want to go through and you can go through a questionnaire here here's the questionnaire self-employed health insurance deduction worksheet schedule one line 17 before you begin be sure you have read the the exceptions alright number one enter the total amount paid in 2023 for health insurance covered established under your business or the S corporation in which you were a more than 2% shareholder for 2023 for you your spouse and your dependents your insurance can also cover your child who was under age 27 at the end of 2023 even if the child wasn't your dependent but don't include amounts for any month you were eligible to participate in an employer sponsored health plan or amounts paid from retirement plan distributions that were non-taxable because you are a retired public safety officer which is a very special situation there number two enter your net profit and any other earned income from the business from schedule C typically or the K1 income that flows through from an S corporation or a partnership possibly or so from the business under which the insurance plan is established minus any deductions on schedule one line 15 and 60 don't include conservation reserve program payments so and then three self-employed health insurance deduction into the smaller of line one or line two here and on schedule one line 17 don't include this amount in figuring any medical expense deduction on schedule a okay caution so a qualified small employer health reimbursement arrangement a QSEH RA is considered to be a subsidized health plan maintained by an employer