Announcement

Collapse
No announcement yet.

Small Business Health Care Tax Credit

Collapse
X
Collapse
 
  • Page of 1
  • Filter
  • Time
  • Show
Clear All
new posts
Previous template Next
    #1

    Small Business Health Care Tax Credit

    I just got the IRS Newswire about the Small Business Health Care Tax Credit. I read what it said but I am still not sure who is included in the Small Business.

    Can a single member S corporation qualify? Can a sole proprieteorship qualify?

    Would it only be if the business paid the health insurance for the employee and met the requirements for number of employees and amount of pay?

    Guess I need to do more research on this subject.

    Linda, EA
    Tags: None
    #2
    Originally posted by oceanlovin'ea View Post
    I just got the IRS Newswire about the Small Business Health Care Tax Credit. I read what it said but I am still not sure who is included in the Small Business.

    Can a single member S corporation qualify? Can a sole proprieteorship qualify?

    Would it only be if the business paid the health insurance for the employee and met the requirements for number of employees and amount of pay?

    Guess I need to do more research on this subject.

    Linda, EA
    Hi Linda - I've prepared a few of these forms and will be happy to share what I know with you. The instructions for form 8941 are pretty straightforward. My Drake software has a very easy data entry screen to fill out.

    No owners/shareholders/proprietors qualify. Fewer than 25 FTE (full time equivalent) employees. Less than $50k average salary per employee. The credit only applies to the portion of health insurance benefits paid by the employer.

    Comment

      #3
      Originally posted by BHoffman View Post
      Hi Linda - I've prepared a few of these forms and will be happy to share what I know with you. The instructions for form 8941 are pretty straightforward. My Drake software has a very easy data entry screen to fill out.
      Your clients must know what information is needed. My one client that wants to take this credit has given me information that she thinks is needed.

      However, it is not near complete.

      NCPE 1040 book has a great example and worksheet to work your way through the calculations. Especially when the employees didn't work the entire year.
      Jiggers, EA

      Comment

        #4
        Then none of my clients would qualify. I will read about it after tax season just so I know. I didn't want to miss something for one of my clients.

        Thanks

        Linda, EA

        Comment

        Previous template Next

        Disclaimer

        Collapse

        This message board allows participants to freely exchange ideas and opinions on areas concerning taxes. The comments posted are the opinions of participants and not that of Tax Materials, Inc. We make no claim as to the accuracy of the information and will not be held liable for any damages caused by using such information. Tax Materials, Inc. reserves the right to delete or modify inappropriate postings.

        Working...
        X