SCorp + Fiscal + 8941 Health Inc Credit

[RZellers]

The credit is effective for tax years beginning after 2009. Clients fiscal year is 7-1-10 thru 6-30-11. There seems to be no info in the instructions regarding fiscal year filers. They DO meet the requirements for number of non-owner employees & wages paid.

Questions in my head:

1. Is the client eligible at all on this return? Seems like they are.

2. If they are, what period would the calculations (wages & premiums) be made on? 1-1 to 12-31 of 2010? or 7-1-10 to 6-30-11 (the fiscal year)? If the latter, what about the credit for the first 6 months of 2010? They wouldn't have been eligible for it on last year's return, because that tax year began in 2009. Right?

It doesn't feel like there should be a calendar year credit on a fiscal year return, but if not, then the credit for the first 6 months of 2010 seems to disappear.

I'm starting to feel like Vinnie Barbarino!

[RZellers]

No thoughts on this?

[Gary2]

The instructions use the phrase "tax year" repeatedly. Indeed, under "Employee hours of service" on page 2, first bullet, it says "employer's tax year." Does that answer the question?

[RZellers]

I did see that, and it does seem to indicate that the calculation should be based on wages & premiums paid during the corp's tax year, ie: 7-1-10 thru 6-30-11.

I still find myself wondering about the credit for the first 6 months of 2010, that on the face of it, seems to be eligible for credit, except that it resides in the wrong (fiscal) tax year. I guess it's possible they'll pick it up on the other end.

I really do appreciate the feedback. I'll keep looking for any other info before I make a final decision.

Thanks