IRS Update: Changes to Small Business Health Care Tax Credit

Since 2010, the Small Business Health Care tax credit has been available to eligible small businesses that offer health insurance and have 25 or fewer employees. The purpose of this credit is to help small businesses pay for the premiums on health insurance for their employees.

The following changes have been made to this credit for tax years beginning in 2014:

• The maximum credit has increased to 50% of health insurance premiums paid.
• To be eligible for the credit, the small employer must purchase their health insurance through a Small Business Health Options Program (SHOP) offered through a health insurance exchange (marketplace).
• Read more

The credit will work with the new changes as follows:

• Credit is available to employers with 25 or fewer full-time equivalent employees whose average annual salaries are not more than $50,000.
• Credit is calculated on a sliding scale with a maximum credit of 50% of the employer's contribution toward their employees' health insurance premiums.
• Read more

An eligible employer claims the credit by completing Form 8941 (Credit for Small Employer Health Insurance Premiums) and including it with their federal return.

Click here to read the entire CrossLink Tax Update that includes further information on changes to the Small Business Health Care tax credit.

IRS Update: Things to Know for the Remainder of the 2013 Filing Season

Reduction in Refundable Portion of the Small Business Health Care Tax Credit

Due to the sequestration legislation that went into effect on March 1, 2013, the refundable portion of the Small Business Health Care Tax Credit will be reduced by 8.7 percent for the remainder of the Federal fiscal year (September 30, 2013). This reduction may be restored if Congress restores the automatic cut that affected this credit. Read more

2012 Federal Returns with Form 8839 (Qualified Adoption Expenses)

Because of the late passage of legislation that permanently extended the adoption credit and made the credit nonrefundable, the IRS is requiring that 2012 Federal returns that include Form 8839 be filed on paper. In addition, there is no longer a requirement to attach supporting documentation for the adoption expenses. Read more

New IRS Video Explaining How to Report Certain Military Retirement Income

The IRS has added a new video that explains how to report military retirement income for veterans when there is an increase in the percentage of disability by the Veterans Administration, or the veteran was granted combat-related special compensation after an award for concurrent retirement and disability.

Click here to read the entire CrossLink Tax Update about things to know for the remainder of the 2013 Filing Season.

IRS Update: Small Business Health Care Tax Credit

This is a reminder that the small business health care tax credit is available to businesses with 25 or fewer employees and who offer health insurance to their employees. Eligible small employers may claim this credit when they file their 2012 Federal return using Form 8941 (Credit for Small Employer Health Insurance Premiums).

This credit has been available since 2010 and its purpose is to help eligible small businesses pay for their health insurance premiums for their employees.

Here is how the credit works:

• The credit is available to employers with 25 or fewer full-time equivalent employees whose average annual salaries are not more than $50,000.
• The credit is calculated on a sliding scale with a maximum credit of 35% of the employer’s contribution toward their employees’ health insurance premiums.
• Read more

Click here to read the entire CrossLink Tax Update that includes further information on the Small Business Health Care Tax Credit.