The Bloomberg BNA Federal Tax Blog is a forum for practitioners and Bloomberg BNA editors to share ideas, raise issues, and network with colleagues about federal tax topics. The ideas presented here are those of individuals and Bloomberg BNA bears no responsibility for the appropriateness or accuracy of the communications between group members.
Thursday, March 15, 2012
March 15th is tax day for many corporations. As you prepare to file 2011 income tax returns, keep in mind that small businesses may be eligible for a tax credit to offset the cost of providing health insurance to their employees. The small business tax credit (Code Section 45R) is available for small businesses that have fewer than 25 full-time employees, pay at least 50% of premium costs for their employees, and pay average annual wages of less than $50,000. The maximum credit is 35% of premium costs for taxable employers and 25% for tax-exempt employers that meet the requirements. The credit is claimed on the employer's income tax return, with an attached Form 8941 showing calculation of the credit. Eligible tax-exempt organizations, which do not generally file income tax returns, can claim the credit on Form 990-T, with Form 8941 attached. --Vanessa WaltsTax Law Editor (Compensation Planning)
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