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Have you missed this business credit?
Your small business might be ignoring a credit that could lower your tax bill. According to the IRS, many companies that might qualify for the credit have failed to take it.
Check the three general tests to qualify for this credit:
* Employing fewer than 25 “full time equivalent” employees.
* Paying average annual wages of less than $50,000.
* Paying at least 50% of health insurance premiums for employees.
If you qualify, you can use this tax credit to offset your federal income tax liability by up to 35% of the cost of health insurance premiums you pay for employees. Since this is a tax credit, not a deduction, it will reduce your tax bill dollar-for-dollar.
For assistance in determining eligibility for this tax credit and in doing the calculations to obtain the credit, contact our office.