If you missed our explanation of the benefits and the pitfalls of the Small Business Health Tax Credit, be sure to go back and read this article before moving on. Many questions arise when analyzing specific situations, feel free to reach out to us. We want to equip and educate you as business owners to save you money and make happy employees.
So….What is Form 8941?
Form 8941 is an IRS designated form that small employers use to claim the tax credit.
If you are a small business employer, you may be able to carry the credit back or forward. And if you are a tax-exempt employer, you may be eligible for a refundable credit.
Secrets for Employers Who Have Been Offering Health Insurance
Starting in 2014, the employer tax credit is only offered for a 2 consecutive tax year credit period.
Tax Credits are retroactive for tax years 2010–2012, meaning you can file for those tax credits if you haven’t already.
So a company who qualified since 2010 can claim 2010-2015, but not beyond. You also can’t claim in 2014 and 2016, as the years must be consecutive.
We always suggest consulting with your local accountant or CPA prior to utilizing your tax credit. The credit amounts can vary by company size and contribution amount.
Feel free to download Form 8941, to get started. If you get stuck be sure to check out this post explaining Form 8941 line by line.