Small Business Benefit Solutions Blog

For those small businesses that filed a tax extension for 2010, the deadline for the health care tax credit is fast approaching.

Small businesses paying at least half of their employees’ health insurance coverage may be eligible for the health care tax credit.

Be sure to take advantage; the deadline is September 15th for corporations or partnerships and October 17 for other small business filers.

Small businesses that have already filed and want to claim the credit can amend their returns using Form 1120X for corporations or Form 1040X for other small businesses.

Eligible tax-exempt organizations can claim the credit on Form 990-T.

Small businesses without taxable income to offset should remember that the credit is part of the general business credit for Tax Year 2010, meaning they may be eligible to carry back the credit for five years or forward for 20 years.

The credit is worth up to 35 percent of the health insurance premium costs a small business incurred for insuring its employees in 2010.

Eligible small businesses that do not yet provide insurance can start providing insurance and claim the credit for 2011 forward.

Speak to your accountant or tax preparer RIGHT AWAY to see if this tax credit is available to you!

For additional information regarding the tax credit deadline please visit the IRS website by clicking here.