Question13: Victor is a more than 2% owner of an S corporation and an employee. The S corporation pays his health insurance. How would this be treated by the S corporation and by Victor?

A. The S corporation would deduct Victor's wages as either wages or officer compensation and the health insurance on line 18, Employee benefit programs. Victor would receive Form W-2 with his wages reported.

B. The S corporation would deduct Victor's wages as either wages or officer compensation and the health insurance on line 18, Employee benefit programs. Victor would receive Form W-2 with his wages reported and take an adjustment on Schedule 1 (Form 1040) for health insurance.

C. The S corporation would deduct Victor's wages as either wages or officer compensation and the health insurance on line 18, Employee benefit programs. Victor would receive Form W-2 with his wages and the amount paid for Victor's health insurance reported on it and take an adjustment on Schedule 1 (Form 1040) for health insurance.

D. The S corporation would include in Victor's wages the amount it paid for health insurance and deduct the total as either wages or officer compensation. Victor would receive Form W-2 with his wages reported and take an adjustment on Schedule 1 (Form 1040) for health insurance.