Small Business Health Care Tax Credit

It is tax season and if you are a small business owner, you might be eligible for the Small Business Health Care Tax Credit.

The Small Business Health Care Tax Credit, a sliding scale tax credit that pays up to 35% of a qualified employer's cost to provide health insurance coverage for it employees. It's available for tax years 2010-13 and can be claimed on an employer's annual tax return. If you have fewer than 25 Full Time Equivalent Employees for the tax year, have average annual wages less than $50,000 per Full Time Employee, and employee's premiums are paid under a qualifying arrangement, you are eligible.

In order to claim this credit, employers must complete IRS Form 8941 (available at http://www.irs.gov/pub/irs-pdf/f8941.pdf) and attach it to their annual tax return. Instructions on how to complete the IRS Form 8941 are available on the IRS website at http://www.irs.gov/pub/irs-pdf.i8941.pdf.

For more information on the Tax Credit, Barr's Insurance, Inc. recommends that you consult a licensed financial adviser or tax professional.

Notice: This post in informational only and does not constitute legal, financial or tax advice.