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ARTICLESFederal Small Business Health Care Tax Credit
For tax years beginning in 2014 or later, there is a tax credit for small businesses which pay toward workers’ health care premiums. The maximum credit is 50% of the premiums paid for small business employers and 35% of premiums paid for small tax-exempt employers. To be eligible for the credit, a small employer must pay premiums on behalf of employees enrolled in a qualified health plan offered through a Small Business Health Options Program (SHOP) Marketplace. For example, if you pay $60,000 a year toward workers’ health care premiums and you qualify for the tax credit, say 20%, your tax savings would be $12,000 a year. Even 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 when you did owe tax. In addition, 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! Small tax-exempt employers can benefit from this credit too. The credit is refundable for tax-exempt employers 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 Medicare tax liability and your income tax withholding. To be eligible for the credit, you must cover at least 50% of the cost of single (not family) health care coverage for each of your employees; have fewer than 25 full-time equivalent employees (FTEs); and those employees must have average wages of less than $50,000 per year. Remember, you will have to purchase insurance through the SHOP Marketplace to be eligible for the credit starting in 2014. To calculate and claim the tax credit, you must use Form 8941, Credit for Small Employer Health Insurance Premiums. 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. How to Obtain Your IRS Transcripts Online If you ever wondered what information the IRS has on file for you or misplaced a prior year tax return and need another copy, you are now in luck. Starting in January 2014, you can now access your individual IRS transcripts online via the IRS website at www.IRS.gov and clicking on “Get Transcript of Your Tax Records” under the Tools menu. Depending on what information you are looking for, there are 5 different types of IRS transcripts that you can obtain on the IRS’s website:
Financial CalculatorsFinancial Calculators are tools that aid with calculating the growth of money over time. There are many different types of financial calculators designed for a variety of different aspects of personal finance, such as mortgages, 401k plans, investments, savings and for overall net worth and retirement.
A financial calculator is a set of formulas that crunches numbers quickly and easily. The results that you pull from a calculator come down to the how accurate the data is that you provide. That exactness of the parameters may provide possible growth paths and general predictions about your money and assets that can help you understand your money better. Click on the highlighted link to access a wide range of financial calculators. Car Loan Calculator
Alternative Payment Frequencies Calculator
Amortizing Simple Loan Calculator
College Savings Calculator
Cool Million Calculator
Savings Goal Calculator
Credit Card Pay Off Calculator
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