Subchapter S Corp Medical Reimbursement

[fiynn]

s About Taxes)/Subchapter S corp Medical Reimbursement Advertisement Expert: Richard Close - 10/14/2008 I am the sole shareholder and employee in my subchapter S Professional association.  Can my P.A. reimburse me for medical expenses such as prescription drugs, doctors visits, and insurance premiums incurred by myself and my family?  

If so, what do I need to do to set that up.  Thank you.

[Garmond]

No. Some C-Corps have Cafe plans which allow you to pay your medical expenses pre-tax. There are no provisions for an S-corp to do this. Any money they give you or pay on your behalf is income. You are allowed to deduct medical expenses if it is more than 7 1/2 % of your AGI.  So, yes they can pay for it, but it is income.