[20010123]98-515_自营职业者健康保险支出的税务处理：现行法律和选定的经济影响.pdf

1 Subchapter S corporations are not subject to the corporate income tax but enjoy the non-taxbenefits of regular corporations, especially limited liability under state laws. To qualify as an Scorporation, a firm can have no more than 75 shareholders, the shareholders must be residentcitizens of the United States, and the firm can issue only one class of stock.Congressional Research Service ? The Library of CongressCRS Report for CongressReceived through the CRS WebOrder Code 98-515Updated January 23, 2001Tax Treatment of Health InsuranceExpenditures by the Self-Employed: Current Law and Selected Economic EffectsGary GuentherAnalyst in Business Taxation and FinanceGovernment and Finance DivisionSummaryThe federal tax code has offered a deduction for the health insurance expendituresof the self-employed since 1987. In 2001, self-employed individuals may deduct fromtheir gross income 60% of the cost of health insurance for themselves and theirimmediate families, and the share is scheduled to rise to 70% in 2002 and 100% in 2003and thereafter. The deduction encourages the self-employed to purchase non-group healthinsurance by lowering its after-tax cost. While there is evidence that it