FEATURE
When and How Eligible small businesses can claim the credit retroactively to tax years 2010 and 2011 by filing corrected taxes for those years. To file a correction, an owner must fill out an amended return using IRS Form 1040x and attach IRS Form 8941 to complete the process. For taxable years 2010 through 2013, the credit is avail-
able for any health insurance coverage purchased from an insurance company licensed under state law. For tax years beginning after December 31, 2013, the credit will be avail- able only for health insurance purchased through an afford- able insurance exchange and only for a maximum coverage period of two additional consecutive taxable years. The maximum credit available is 35 percent of the em-
ployer’s contributions to the premium for 2010 through 2013. The maximum credit is 50 percent for 2014 and later. Eligible employer contributions are limited by the amount
Find Out More About Tax Credits For more information, go to ■
www.smallbusinessmajority.org/hc-reform-faq/index.php ■
www.irs.gov/irb/2012-09_IRB/ar10.html
the employer would have contributed under the state aver- age premium.
There is a sliding-scale tax credit of up to 35 percent of the employer’s eligible premium expenses for tax years 2010–2013. Beginning in tax year 2014, the maximum tax credit increases to 50 percent of premium expenses and coverage must be purchased from a state health insurance exchange. This tax credit is available for a total of any two years.
ASC FOCUS JANUARY 2013
17
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