Small Business Tax Credits for Health Insurance
The Patient Protection and Affordable Care Act approved by Congress last month offers up to 35% tax credits to small companies that offer health care for their employees. The credit, effective in 2010, can be used by both small businesses who have previously never offered health insurance as well as those who are currently offering health coverage to their employees.
Qualifications for the health care tax credit:
The tax credit is designed for small business employers who pay at least 1/2 their employees health care cost. The largest tax credits (35% of the annual premiums) go to small companies with less than 10 employes who make less that $25K per year on average. The credit is not available for employers that have 25 full time equivilent employees or more or that pay average wages of $50,000 per year or more.
These tax credits are mentioned in brief in the MSNBC health care overview below:
Visit the IRS site on the new health insurance tax credit then consult your tax professional to see if you qualify.