Small Business Health Care Tax Credit
Target Audience: CPAs, EAs, RTRPs
Field of Study: Taxation (NASBA); Federal Tax (IRS)
Seminar Level: Beginner
IRS COMMUNICATIONS AND LIAISON IS REGISTERED WITH THE NATIONAL ASSOCIATION OF STATE BOARDS OF ACCOUNTANCY (NASBA) AS A SPONSOR OF CONTINUING PROFESSIONAL EDUCATION ON THE NATIONAL REGISTRY OF CPE SPONSORS. STATE BOARDS OF ACCOUNTANCY HAVE FINAL AUTHORITY ON THE ACCEPTANCE OF INDIVIDUAL COURSES FOR CPE CREDIT. COMPLAINTS REGARDING REGISTERED SPONSORS MAY BE SUBMITTED TO THE NATIONAL REGISTRY OF CPE SPONSORS THROUGH ITS WEBSITE: WWW.LEARNINGMARKET.ORG.
DISCLAIMER: THIS SEMINAR WAS FILMED IN ORLANDO, FLORIDA, ON JULY 14, 2011, AND THE INFORMATION WAS CORRECT AT THE TIME OF RECORDING.
The Taxpayer Advocate Service (TAS) delivered this seminar at the IRS Nationwide Tax Forum in Orlando, Florida, in July 2011.
The Small Business Health Care Tax Credit is the first major tax provision of the new health care law to take effect. The credit is available to businesses that have no more than 25 full-time employees, average annual wages of less than $50,000, and provide health insurance to the employees. Many eligible businesses have yet to determine if they qualify. Learn practical information on how your small business clients can take advantage of this credit, and how the Taxpayer Advocate Service can provide help with problems they haven’t been able to resolve themselves.
By the end of this presentation you will:
- Learn practical information on how your small business clients can take advantage of this credit
- Understand which employers qualify as “eligible small employers” and determine who is an eligible employee for purposes of this credit
- Know the maximum credit amount for both eligible small employers and eligible tax-exempt small employers
- Learn how to calculate the credit
UPDATE: Effect of Sequestration on Small Business Health Care Tax Credit
Pursuant to the requirements of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended, certain automatic cuts took place as of March 1, 2013. These required cuts include a reduction to the refundable portion of the Small Business Health Care Tax Credit for certain small tax-exempt employers under Internal Revenue Code section 45R. As a result, the refundable portion of your claim will be reduced by 8.7 percent. The sequestration reduction rate will be applied until the end of the fiscal year (Sept. 30, 2013) or intervening Congressional action, at which time the sequestration rate is subject to change.
No prerequisites or advanced preparation are required for this seminar.