Healthcare

Small Business Health Care Tax Credit: The Credit That Few Can Use

by
Lee Reams II
on
9/15/2015
Small Business Health Care Tax Credit: The Credit That Few Can Use

If you are an eligible small business employer, the Small Business Health Care Tax Credit can help you cover the cost of your health insurance coverage. While this sounds inviting to small business owners, many fail to meet the requirements set forth to qualify for the credit.

The credit is only available to eligible small employers (ESEs) that provide non-elective health insurance to their employees and:

  • Employ 25 or fewer equivalent full-time employees (FTEs)
  • Have average annual full-time wages (AAEW) of $51,600 (2015) or less
  • Pay at least 50% of insurance costs.

The taxpayer advocate has released a Small Business Health Care Tax Credit estimator that will tell you whether your business qualifies for the tax credit.

If you qualify, you’ll need to file IRS Form 8941 to claim your tax credit. To learn more, visit ObamaCareFacts.com for more details.

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Lee Reams II

Lee Reams II

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I am a tax and business news junkie who has spent the last 20 years developing and executing "best in class" word-of-mouth marketing campaigns for tax and accounting professionals. With TaxBuzz and CountingWorks we have taken that same commitment to quality content directly to the consumer. Keeping you up-to-date with the latest tax law changes, business growth tips and planning strategies to help you reach your best financial outcome.

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