S corporation tax tip about health insurance

When it comes to taxes, everyone seems to try to pay lesser. Well, paying lesser is fine if it is according to law, if not the IRS will come and bug you for the remaining unpaid taxes. Well, now let's talk about taxes and S corporation. An S Corporation is a corporation, partnership or limited liability company that’s made an S election with the IRS. Little did you know that you could save some money if you are a S corporation thru S corporation FAQ. Its not a fluke or a gimmick, its the truth. Seattle CPA and tax professor Stephen L. Nelson notes that IRS rules have changed for 2008. You should be able to deduct health insurance for shareholder-employees in small S corporations. However, you need to write the checks on the corporation bank account. Nelson notes that you also need to do some extra fiddling with the shareholder-employees' W-2s, as described in IRS Notice 2008-01. That is a fine example from S corporation FAQ. Why pay unnecessary taxes when you don't need to pay them at all! More at S corporation.