New Tax Credits For Small Employers Providing Medical Insurance
Posted on Tue, Apr 20, 2010
Medical Insurance coverage legislation enacted this year includes a Small Business Health Care Tax Credit to help small businesses and small tax-exempt organizations afford the cost of covering their workers.
Small businesses and tax-exempt organizations that provide health insurance coverage for employees may now qualify for a special tax credit, according to the Internal Revenue Service (IR-2010-38, April 1, 2010).
The maximum small business tax credits are:
- Eligible small businesses - The maximum credit is 35% of premiums paid in 2010
- Eligible tax-exempt organizations - The maximum is 25% of premiums paid.
These maximum credits are scheduled to increase in 2014
Eligible small businesses can claim the credit as part of the general business credit starting with the 2010 income tax return they file in 2011 (the IRS will provide information for tax exempt organizations later).
Click Here For Three Simple Steps for Employers to Qualify For