Rob Campbell, employment tax credit manager at KBKG, which specializes in restaurant-related accounting and consulting, worked with Tulsa Rib on analyzing the business's small employer
health insurance credit.
In order to qualify for the small employer
health insurance credit, an employer must meet three requirements.
Small Employer
Health Insurance credit available to small businesses that incur health insurance costs.
THE INTERNAL REVENUE SERVICE has published a table that small employers can use to calculate their
health insurance credit for the 2010 taxable year.
Self-employed professionals including partners and sole proprietors, 2% shareholders of an S corporation, and 5% owners of the employer are not treated as employees for purposes of the Small Employer
Health Insurance Credit.
Without spousal employment, you only receive a 70%
health insurance credit, for a 30% tax savings, instead of the full write off on Schedule C and lower social security taxes.
For example, the refundable
health insurance credit introduces a new phase-out; and the
health insurance credit, the failing public schools credit, and the energy tax credits introduce many complex new qualification requirements that will consume scarce Internal Revenue Service administrative resources and likely be confusing to affected taxpayers.
The
health insurance credit is in addition to, not in lieu of, the basic credit.
The
Health Insurance Credit may be taken in addition to the basic credit.
If you take an itemized deduction for medical expenses, the amount of your deduction must be reduced by the
health insurance credit you are claiming for the year.
They included the American Opportunity Credit, additional child tax credit, Regulated Investment Company credit, adoption credit, refundable prior-year minimum tax credit, and
health insurance credit.
