Help for Small Businesses
Tuesday, December 14, 2010
As part of the Affordable Care Act, small businesses may qualify for a tax credit to cover up to 35 percent of health expenses. Eligible expenses include: the cost of traditional health insurance, dental and vision coverage. The tax credit, which begins in tax year 2010, targets businesses and non-profits with fewer than twenty-five employees, pay average annual wages below $50,000, and cover a significant portion of employees’ health coverage.
The Internal Revenue Service (IRS) recently released guidance on how to claim this tax credit. The one-page claim form (Form 8941) makes it easier for small businesses to determine the credit amount they are eligible for and includes instructions on how to claim the credit on their income tax return. More information can be found at http://www.irs.gov/instructions/i8941/ar01.html.