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Health Care Tax Credit for Small Businesses

The IRS recently released information pertaining to the Small Business Health Care Tax Credit, outlining the prerequisites for receiving the credit and which forms need to be filed.

For a business to receive the credit, it must have used the Small Business Health Options Program (SHOP) to purchase health care for employees. Eligible businesses must pay at least half the cost of employee premiums, and must have "fewer than 25 full-time equivalent" workers who - on average - are paid less than $50,000 annually.

To file, the eligible business must complete Form 8941. Some non-profits might also be eligible for the credit: They would include the information on their Form 990-T.

It may still be possible to claim the credit for 2014 returns. The window for applying for a refund is "within three years from the time the return was filed or two years from the time the tax was paid, whichever ... expires later."

To read the full article, click here.

Source: Internal Revenue Service

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