New IRS Small Business Tax Credit Form
The IRS recently released final guidance and a new Form 8941 with instructions for small businesses to use in claiming the new small business health care tax credit for the 2010 tax year.
Eligible employers should use the Form 8941 to calculate the credit amount and then include that number as part of the general business credit on an employer's income tax return.
This tax credit is designed to provide funds for both small businesses and small tax-exempt organizations to help cover the cost of their employees' health insurance. The credit can be worth up to 35 percent of health insurance premium contributions (25 percent if the small employer is tax-exempt).
In general, the credit is available to small employers that pay at least half of employees' health coverage premiums. Qualifying businesses can claim the credit for 2010 through 2013, and for any two years after that.
For more information, please see the following resources:
This information is provided for informational purposes only and does not constitute legal advice. Please consult your legal counsel regarding your specific situation.
Please note that this content is only intended to describe national health care reform requirements under the Patient Protection and Affordable Care Act (PPACA). It does not address Massachusetts law requirements or the potential impact of Massachusetts law on federal PPACA requirements.
For purposes of PPACA implementation, Blue Cross Blue Shield of Massachusetts assumes the plan year is the policy year, unless an account notifies us otherwise.