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TAX SEASON TIP - SMALL BUSINESS HEALTH CARE TAX CREDIT

Posted on 3/8/2013 by Alex Ayala

As the March 15 corporation tax deadline approaches, it is important for small business owners to be aware of the various tax laws that can help with their businesses’ bottom line. Several tax laws are impacting small business tax returns this season and providing substantial savings, including the underutilized Small Business Health Care Tax Credit.

Tax Season Tip - Small Business Health Care Tax Credit

ATTENTION Small business owners: it is not too late to claim the Small Business Health Care Tax Credit!

 

As the March 15 corporation tax deadline approaches, it is important for small business owners to be aware of the various tax laws that can help with their businesses’ bottom line.  Several tax laws are impacting small business tax returns this season and providing substantial savings, including the underutilized Small Business Health Care Tax Credit.

 

The Small Business Health Care Tax Credit, part of the Patient Protection and Affordable Care Act (ACA), also known as the health care law, is available to California small business and tax-exempt employers that provide health care coverage to their employees. For the 2012 filing season, the IRS is offering a tax credit equaling up to 35 percent of the employer’s eligible premium expenses for insuring employees and it will increase to 50 percent in 2014.

 

There is good news for small tax-exempt employers too. The credit is refundable, so even if an employer has no taxable income, you may be eligible to receive the credit as a refund so long as it does not exceed your income tax withholding and Medicare tax liability.   

 

Small employers can claim the Small Business Health Care Tax Credit as part of the general business credit using the IRS Form 8941 and tax-exempt employers can calculate the refund with the IRS Form 990-T. Small employers that have already filed a tax return and later determine they are eligible for the credit can also file an amended tax return starting with the 2010 income tax return. 

 

 

To determine if your business or tax exempt organization qualifies for the Small Business Health Care Tax Credit, visit www.HealthLawGuideforBusiness.org/taxcredits or consult with your tax preparer.   

 

 

For more information on the tax credit and how other provisions of the health care law specifically affect you and your business, visit www.HealthLawGuideforBusiness.org.

 

 

More than 500,000 California employers may be eligible for this tax credit and yours may be one of them! 

 

Suggested Social Media Posts

Facebook: Did you know more than 500,000 California employers may be eligible for the Small Business Health Care Tax Credit and yours may be one of them! Learn more at www.HealthLawGuideforBusiness.org/taxcredits  

Twitter: Learn more about the #ACA’s #smbiz health care tax credit. Your business may be eligible! http://bit.ly/xh5tgy