Small Business Health Care Tax Credit (ASL) - YouTube video text script
Hi, I’m Patrick and I work for the IRS.
Are you a small employer?
Get the credit you deserve, the Small Business Health Care Tax Credit.
If you are a small employer, either a for-profit business or a tax-exempt group and you pay premiums for health insurance coverage for your employees, you may be eligible.
For tax years 2010 through 2013, the credit is up to 35% of the qualified premiums you pay as an eligible small business.
And, if you’re an eligible tax-exempt employer, it’s up to 25%.
For some employers, an expanded version of the credit will be effective beginning January 1, 2014.
So, who’s a small employer?
Well, usually it’s an employer with fewer than 25 employees and those employees must earn low to moderate wages.
There are other special rules.
For example, two half-time workers generally count as one full-time employee.
So if you have more than 25 workers, you still may qualify.
If you’re a small business, you'll claim the credit as part of the general business credit on your income tax return.
If you have no tax due, you can carry the credit back or forward to other years.
And since the credit will be less than the full amount of your premium payments, you may be eligible to claim a business expense deduction for the difference.
That’s both a credit and a deduction for employee premium payments.
If you’re a tax-exempt employer, you’ll claim the credit on Form 990-T.
And for you, the credit is refundable.
For more details, go to IRS.gov