Union benefits and form 8941

[BHoffman]

Anyone know if union health benefits paid by the employer are eligible for the 8941 tax credit?

Thanks for any advice. Can't find it anywhere.

[Gretel]

It's very hard to find anything definite if unions are involved. I have been thinking about this for one of my clients and my reasoning is that this is an employer plan since it's mandatory to pay to union members even though not established by employer.

My employer also has non-union employees and right of I don't know if a requirement is to have all employees covered or not.

Good luck and keep us posted.

[BHoffman]

bumpity bump

Well, darn it I was sure hoping someone would speak right up with the answer. Thanks Gretel for commiserating.

[AJsTax]

Two comments:

One, no the employer is not required to cover all employees to be eligible for the credit. Just be real careful to read who is considered non-eligible relatives for this credit. The list is quite extensive and even gets into constructive ownership rules.
nearly any plan that the employer is required to pay for at least 50% of the coverage is included. I have not seen anywhere that union plans would not be covered. But I have researched that question directly.
I figured the credit for around thirty companies so far and some made out well and some do not qualify that at first glance it seems like they should.

[BHoffman]

Thanks AJ - I read the Rev Proc and it mentions "collective bargaining" is allowable, so I'm going to take that as meaning unions and see what happens. I haven't even looked yet to see whether they will qualify regarding the wage and FTE limits.