Health Care Tax Credit

Health Care Tax Credit

A tax credit available to some small businesses that provide health insurance for their employees. The health care tax credit is a direct, dollar-for-dollar reduction in a business' tax liability up to a certain percentage of the premium it pays for employee health insurance. The credit phases out for average employee incomes between $25,000 and $50,000 and for business with between 10 and 25 full-time employees. This credit became available in 2010.
References in periodicals archive ?
CMS now proposes maintaining the Affordable Care Act Small Business Health Care Tax Credit, but allowing employers to enroll directly with insurance companies offering SHOP plans or through a broker registered with SHOP.
Some employers that purchase SHOP coverage are also able to access the Small Business Health Care Tax Credit.
Additionally, small employers who meet certain eligibility criteria and who offer health coverage through the Small Business Health Options Program (SHOP) Marketplace may qualify for a Health Care Tax Credit.
Republicans say their health care tax credit would be as easy to move from plan to plan as a backpack.
Of particular interest is the explanation of the Small Business Health Care Tax Credit and ACA's impact on Flexible Spending Arrangements (FSAs) and Health Savings Accounts (HSAs).
Businesses with 25 or fewer employees that offer coverage to their workers through the SHOP marketplace may be eligible for a Small Business Health Care Tax Credit of up to 50% of the employer's cost.
Keep in mind that for businesses to qualify for the small business health care tax credit, they must use the SHOP marketplaces.
But if you want to apply for the Small Business Health Care Tax Credit, you will need to get a notice of your SHOP eligibility before you file your returns for tax year 2014.
The IRS site links to a Small Business Health Care Tax Credit Estimator developed by the Taxpayer Advocate Service (available at tinyurl.
The Small Business Health Care Tax Credit significantly helps businesses by offsetting some of the cost increases that may come with providing quality, affordable health insurance to employees.

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