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Health care tax credit available this tax year

Health care tax credits
Tax credits are available for small-business owners.

HARTFORD, Conn. – A new tax credit is available to help small-business owners provide health insurance to their employees, but certain stipulations are limiting the number of those who can reap its benefit.

The Health Care Tax Credit is an option for eligible businesses beginning this tax year and can be claimed for two consecutive years. The maximum credit is 50 percent of health care premiums paid for small-business employers and 35 percent of premiums paid for tax-exempt small employers like nonprofits, according to the Internal Revenue Service.

The IRS is urging all small-business owners in the state to explore whether they qualify for the tax credit.

There are benefits to those who do. Employers who don’t owe taxes during the year can carry the credit back or forward to other tax years. And since the amount of health insurance premiums is greater than the total credit claimed, eligible employers still are able to claim a business expense deduction for any premium costs that exceed the credit amount, according to the IRS. Also, the credit is refundable for tax-exempt employers.

See the complete story at CT News Junkie.

 

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One response to “Health care tax credit available this tax year”

  1. One and Done

    More sheer stupidity from our lawmakers. It’s like Macy’s 50 percent off of 300% markup. And the cap on income takes the cake, unless of course you think companies need more incentives to not give raises.

    Thanks to Jim Himes.

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