Health Insurance Tax Credit Worksheet

As part of the federal legislation overhauling the health care system passed in 2010, a new (and potentially significant) tax credit was enacted beginning with the 2010 tax year through 2011.

This credit will provide a refundable tax credit of up to 35% of the health insurance premiums paid by certain small employers (and up to 25% for certain non-profit employers).

To be eligible, three criteria must be met:

1. You must have had less than 25 full-time equivalent (FTE) employees during 2010,

2. You must have a 2011 annual average wage paid to an FTE of less than $50,000, and

3. You, as the employer, must have paid at least 50% of the health insurance premium cost for employees enrolled in your company health plan.

If you believe you might be eligible for this credit, please refer to the linked worksheet below as a reference to the information that will need to be gathered to (a) determine your eligibility for the credit, and (b) determine the amount of your credit.Below is a link to download the credit worksheet. Once complete please email back to us (even if you appear not eligible) so we can review and confirm the status determination. If eligible, our office will determine the exact credit amount based on the data in the worksheet as part of your tax return preparation process.

SOME IMPORTANT NOTES TO CONSIDER:

· Company owners and any of their immediate family members who are paid wages by the Company are NOT considered in any of the tests to determine credit eligibility or to determine the credit amount. Please do not list them on the schedule.

· Under 'Type of Coverage', "Other" includes any coverage that is not self-only coverage such as Self+1 or Family coverage.

· Premiums paid by the employee include those that were withheld from the employees pay.

   

Health Insurance Tax Credit Worksheet