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Small Business Health Care Tax Credit - Podcast text script

HI… I’M PATTI… AND I WORK FOR THE INTERNAL REVENUE SERVICE.
  
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 PERCENT 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 PERCENT.
   
FOR SOME EMPLOYERS… AN ENHANCED 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 EMPLOYEE.  SO EVEN 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.

AND… IF YOU HAVE NO TAX DUE… YOU CAN CARRY THE CREDIT BACK OR FORWARD TO OTHER YEARS.
    
ALSO, 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. 
   
NOW 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 I-R-S-DOT-GOV. 

Page Last Reviewed or Updated: 14-Mar-2014