Small business and tax-exempt organizations eligible to claim the healthcare tax credit on their income tax returns next year can get a jumpstart on calculating the figure, using a draft Form 8941, Credit for Small Employer Health Insurance Premiums, which was recently posted at on the IRS website. The final version and its instructions are expected to be posted by the end of the calendar year.
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Get Your Report Now!Designed to encourage small employers to offer health insurance coverage for the first time or to maintain existing coverage, the credit is generally available in 2010 to small employers that pay at least half the cost of single coverage for their employees’ health insurance, according to the IRS. The maximum credit is 35 percent of premiums paid by eligible small businesses and 25 percent paid by eligible tax-exempt organizations for tax years 2010 to 2013. After that, the maximum credit increases to 50 percent and 35 percent, respectively.