Small Business: Last Minute Tax Tips for the Health Insurance Tax Credit!

We know tax season is counting down, especially for small businesses who may need to file on March 15th. If you are struggling with how to use the health insurance tax credit for small businesses on your returns, here are some last minute tips to remember:

You must use Form 8941, Credit for Small Employer Health Insurance Premiums, to calculate the credit, and if you are a small business, include the amount as part of the general business credit on your income tax return.

If you are a tax-exempt organization, include the amount on line 44f of the Form 990-T, Exempt Organization Business Income Tax Return. You must file the Form 990-T in order to claim the credit, even if you don’t ordinarily do so.

Don’t forget … if you are a small business employer you may be able to carry the credit back or forward. Businesses that couldn’t use the credit in 2011 may be eligible to claim it in future years. Eligible small employers can claim the credit for 2010 through 2013 and for two additional years beginning in 2014.  And if you are a tax-exempt employer, you may be eligible for a refundable credit.

Are you claiming the health insurance tax credit for 2011?  Tell us about it in our discussion forums!

Related posts:

1. Link of the Day: Small Business Health Insurance Tax Credit Worksheet
2. So Who Does the Small Business Health Insurance Tax Credit Actually Help?
3. Small Businesses Unaware of Health Insurance Tax Credit; Did You Claim the Tax Credit for 2010?
4. Feds Broaden Eligibility For the Small Business Healthcare Tax Credit; Are You Eligible?
5. Does the Small Business Health Insurance Tax Credit Actually Help Anyone?