To help you estimate your potential tax credit amount, input the data into the calculator to determine your estimated potential health insurance savings under the new health reform law.
This tool is provided for your convenience and education concerning the small employer's tax credit. This tool is not intended to provide tax or legal advice, and you should not rely on the information provided without first consulting a tax professional regarding the final amount, and any questions you have relating to your unique circumstances.
The tool provides an approximation of the tax credit based on the questions answered, the data provided, and the information currently available to the public from the IRS regarding the tax credit. A more detailed analysis by a tax professional may result in a different amount or might result in no credit.
Under the Affordable Care Act, the Internal Revenue Services issued guidance to encourage small businesses to offer health care coverage for the first time or enable them to maintain the coverage they currently have. IRS Notice 2010-44 (PDF) provides guidelines to help small group employers determine whether they qualify for the credit and estimate the amount of the credit.
In order to qualify for the credit, generally the employer:
Tax Credit Amount
In 2010, the maximum tax credit is 35% of employer-paid premiums; for tax-exempt organizations the maximum is 25% of premiums-paid.
The IRS provides scenarios (PDF) illustrating how the credit applies to employers in different circumstances.
Filing the Claim
Small businesses can claim the credit when they file their 2010 income tax return in 2011. Additional information will be posted to the IRS website when available.
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