How to Write Off Medical Expenses with a Health Reimbursement Arrangement (HRA)

Another reason why you could or should put your spouse on payroll is for a health care strategy. It's called the health Reimbursement Arrangement. It works in a marriage situation where you can cover your spouse and all their medical and their dependents, which includes you. So in your typical S corporation, you're not going to be able to write off your medical expenses. You write off the insurance, but all the CO pays, the deductibles, the dentist, the eyes, the chiropractic, whatever. You can't write that off in your S corp. But if you set up an HRA for your spouse through a support company, we can write it off. Now, it's a chapter in my book, the Tax and Legal Playbook. We've had podcasts on that. But putting the spouse on payroll, it doesn't even actually require a W2. But you're going to go through a pay function, and it's called the HRA.