Can I pay my insurance through my corporation?

Question

I am self employed and have a corporation. Can my corporation pay the premiums for my health insurance and treat it as an expense?

Answer 1

Yes, the corporation will get a deduction on its tax return. However, you will then have to take the premiums paid on your behalf into your wages. You can then deduct them as a medical expense on your schedule A. You will only be able to take medical expenses as a deduction if you itemize and only to the extent that they exceed 7.5% of your adjusted gross income.

Answer 2

Yes. You should see a lawyer or CPA to make sure you set it up properly so that you can legally take the deduction.