Houston, TX (PRWEB) December 31, 2011
Small businesses should be aware that the IRS is allowing a tax credit for small businesses that pay for a minimum of half of their employees’ health care premiums. Tax resolution firm Top Tax Defenders noted that taking advantage of the tax credit could help many small businesses maintain a profit during tough economic times.
Not only does the small business health care tax credit allow small businesses to save money on their tax liability, but it gives them the chance to offer their employees health insurance benefits when they could not afford to in the past. A representative from the tax resolution firm Top Tax Defenders noted, “The small business health care tax credit is the perfect opportunity for small businesses to offer more to their employees without hurting their bottom line.”
According to the IRS, the credit applies to 2010 tax returns and small businesses may still be able to benefit if they were not able to take the credit for the 2010 tax year. A small business that started a health plan for its employees in the 2010 tax year, but were unable to qualify for the credit that year, may be eligible to take the credit in 2011. The credit may be claimed through 2013.
Eligibility is based on the amount that small businesses have paid for their employees’ health insurance. The businesses must have already set up a health insurance plan for their employees in the year 2010 or earlier. Those paying at least half of their employees’ health care premiums are eligible for a credit of up to 35 percent of the amount they paid starting in 2010. In 2014, the maximum credit will be increased to 50 percent of the amount of health insurance premiums an employer has paid.
Some tax-exempt organizations may also be eligible for the tax credit, although they are eligible for a maximum of 25 percent of the costs paid through the year 2013 and 35 percent of the costs paid starting in the year 2014.
Read more about the tax credit on the http://www.irs.gov/newsroom/article/0,,id=223666,00.html [Internal Revenue Service website here __title__ ].
About Top Tax Defenders:
Top Tax Defenders is a Houston-based tax resolution firm that helps individuals and companies across the United States find a solution to their tax problems including unfiled tax returns, removing IRS liens and levys, settling back taxes, payroll tax problems, sales tax issues and more.