By Maria Valdez Haubrich
The government wants to make sure you know about the new health care tax credit form for small businesses made available because of the Affordable Care Act. According to a recent letter from SBA Administrator, Karen Mills, the tax credit will help small business owners and nonprofit organizations (businesses with less than 25 full-time equivalent employees with average annual wages below $50,000) claim a credit for the high premium increases in recent years. The Administration is releasing a one-page form and instructions on how to claim this credit for the 2010 tax year. The tax credits are available for the 2010 through 2013 tax years and two years after that. Through 2013, the maximum tax credit is 35 percent of premiums paid by small employers and beginning in 2014, the credit increases to 50 percent.
Also worth noting, starting in 2014 businesses with less than 100 employees will be able to pool their resources to reduce their administrative costs by purchasing coverage through a health insurance exchange.
For more information on the one page tax form, visit the IRS website.