[Tax FAQ Friday!!!] Todays topic....Small Business Health Care Tax Credit! What if our small business did not owe tax during the year? According to the IRS, if you are a small business employer who did not owe tax during the year, you can carry the credit back or forward to other tax years. Also, since the amount of the health insurance premium payments is more than the total credit, eligible small businesses can still claim a business expense deduction for the premiums in excess of the credit. That’s both a credit and a deduction for employee premium payments. For small tax-exempt employers, the credit is refundable. So even if you have no taxable income, you may be eligible to receive the credit as a refund so long as it does not exceed your income tax withholding and Medicare tax liability.
Posted on: Fri, 24 Jan 2014 22:00:48 +0000
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