HRA and S-Corp limitations
Back ground:
Husband is 100% shareholder for S-corp
I am a full time employee for S-corp.
Set up a HRA (DIY) for 2009. Reimbursed myself for out of pocket medical. (thinking I was eligible as an employee they were not put on any W-2)
S-corp paid Insurance premiums and it went on W-2 as wages, but not SS or Med.
Turned in taxes to accountant, now he says the reimbursments to me have to be treated as distribution and put on Sch A subject to 7.5% limits = won't get to deduct them.
Can I ammend hubby's W-2 to include the medical reimbursements as wages so they can be deducted with the medical insurance premiums or am I screwed?


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