2013 Small Business Health Care Tax Credit

[Howco]

Taxpayer pays 50% of employees health insurance premiums, but pays zero percent of employees dental insurance premiums.

Assuming taxpayer otherwise qualifies (<25 employees, < $50,000 avg annual wages), is taxpayer eligible to take this tax credit?

Can the credit be calculated on only the health insurance benefits? Or is taxpayer prohibited from taking any credit because some of the benefits are not paid at least 50% ?

[TaxGuyBill]

As long as it's a "qualified health plan" (almost all insurance is), then the employer should be eligible for the credit.

http://www.law.cornell.edu/uscode/text/26/45R#b

[ATSMAN]

If the health insurance qualifies, and you meet the test it does not matter that Dental is not included.

They will need to file form 8941

Inform them this 2014 law change:

The maximum credit will increase to 50 percent of premiums paid for small business employers and 35 percent of premiums paid for small tax-exempt employers. To be eligible for the credit, a small employer must pay premiums on behalf of employees enrolled in a qualified health plan offered through a Small Business Health Options Program (SHOP) Marketplace.
The credit will be available to eligible employers for two consecutive taxable years.