The tax filing extension deadline is quickly approaching, and the IRS, along with the Department of Health and Human Services, are reaching out to small businesses and professional service providers and asking them to take a look at the new Small Business Health Care Tax Credit to find out if they are eligible.
IRS Commissioner, Doug Shulman says, “As the filing deadlines approach, we want to make sure small business owners don’t leave any money on the table. Small businesses that offer health insurance should learn about this credit and claim it if they are eligible.”
The Small Business Health Care Tax Credit is part of the Affordable Care Act, which was put in place last year. Small businesses that pay half of the health insurance premiums for their employers may qualify for the tax credit. The credit is designed to assist small companies and tax-exempt businesses that have 25 or fewer employees with an average income of less than $50,000.
Small businesses have 2 tax filing deadlines that are coming up:
-September 15: Businesses that file each calendar year and have requested to file on September 15th can claim the small employer health care credit on the 8941 Form and claim it as a general business credit on the 3800 Form when they file their taxes.
-October 17: Sole proprietors, partners and S-corporation shareholders who file the 1040 and ask for an extension will be able to file by October 17th. They must use the 8941 Form and claim the credit on the 3800 Form, which is shown on line 53 on their 1040 Form.
Tax-exempt companies that file each calendar year, and asked for an extension will have until November 15th. They will use the 8941 Form and claim the credit on the 990-T Form, Line 44f.
These deadlines are quickly approaching and businesses are planning for the tax year while the IRS works with their new partners, who are:
-The tax software industry: They are working to upgrade access to information to educate and notify small businesses about taxpayers who are eligible for this credit.
-Insurance agents, brokers and carriers: They work with small employers to guarantee that workers how receive health insurance are aware of the benefits of this credit. The Department of Health and Human Services has mailed over 2,000 agents and brokers regarding the credit.
-Small business and tax practitioner: They will give several webinars and other opportunities to learn about this credit.
More information can be found via social media like the IRS’s YouTube channel. The videos are in English, Spanish and American Sign Language. Emails and tweets will also be sent to small businesses and tax preparers.
The IRS wants to remind small businesses about the filing deadlines and will give details regarding the credit, such as:
-Businesses that have already filed their taxes may claim the credit.
-Businesses without tax liability this year can still benefit.
-Businesses that couldn’t use the credit in 2010 can claim it in the coming years.
The HHS has provided more information about this credit. Interested parties can find this information at http://www.healthcare.gov/news/blog/smallbusiness09072011.html.
Even more information about qualifying for this credit can be found at irs.gov and by searching for the Small Business Health Care Tax Credit for Small Employers.
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