“As the filing extension tax deadlines approach, the Internal Revenue Service, in partnership with the Department of Health and Human Services, is encouraging small businesses to review the Health Care Tax Credit to see if they are eligible.
The small business health care tax credit was included in the Affordable Care Act enacted last year. Small employers that pay at least half of the premiums for employee health insurance coverage under a qualifying arrangement may be eligible for the small business health care tax credit. The credit is specifically targeted to help small businesses and tax-exempt organizations that primarily employ 25 or fewer workers with average income of $50,000 or less.
Small employers face two important tax filing deadline in coming weeks:
Form 1040 users: Sole proprietors who file 1040 and partners and S-corporation shareholders who report income on Form 1040 and requested an extension have until Oct. 17 to complete returns. They also should use Form 8941 to calculate the small employer health care credit and claim it as a general business credit on Form 3800, reflected on line 53 of Form 1040.
Tax-exempt organizations that file on a calendar year basis and requested an extension to file to Nov. 15, can use Form 8941 and then claim the credit on Form 990-T, Line 44f.
Information also will be available through social media and other venues, including IRS YouTube videos in English, Spanish and American sign language.
Targeted emails and tweets will be sent to the small business community and tax preparers.
In addition to the IRS announcement, HHS posted additional information at http://www.healthcare.gov/news/blog/smallbusiness09072011.html on this credit.
Visit http://www.irs.gov/newsroom/article/0,,id=223666,00.html Small Business Health Care Tax Credit for Small Employers page of IRS.gov for additional information about eligibility requirements and calculating the credit.”