Small Business Tax Credit Forms

The IRS recently released final guidance for small employers eligible for the health care tax credit for the 2010 tax year.  In summary, the tax credit is available to small employers who pay at least 50% of the employee only premium, have less than 25 full-time employees and the average wage is less than $50,000 per year.

The maximum credit according to most actuaries is given to those who have 10 or fewer full-time equivalent employees.  Because the rules are based on full-time employees, those employers who may employ part-time or seasonal workers may still apply even if you have more than 25 employees.

An eligible small business should use Form 8941 to calculate any credit, then claim the credit on Line 441 of 990-T.

The credit is part of the general business credit on its income tax return.

Burman S. Clark

Burman S. Clark, RHU, CSA is the President of Muneris Benefits and a licensed insurance broker and consultant. His independent practice and focuses on employee benefits, individual life, disability, medical, and senior products. Burman has traveled extensively and provided guidance to large employer associations with regards to the Affordable Care Act.