The Internal Revenue Service has announced two upcoming deadlines for small employers.
Corporations that file on a calendar year basis and requested a filing extension until Sept. 15 can calculate the small employer health care credit on Form 8941 and claim it as part of the general business credit on Form 3800, which they would include with their corporate income tax return.
Sole proprietors who file Form 1040 and partners and S-corporation shareholders who report their income on this form and requested an extension have until October 17 to complete their returns. They would also use Form 8941 to calculate the small employer health care credit and claim it as a general business credit on Form 3800, reflected on line 53 of Form 1040.
“As the filing deadlines approach, we want to make sure that small business owners don’t leave any money on the table,” said IRS Commissioner Doug Shulman. “Small businesses that offer health insurance should learn about this credit and claim it if they are eligible.”
In addition, tax-exempt organizations that file on a calendar year basis and requested an extension to file to Nov. 15 can use Form 8941 and then claim the credit on Form 990-T, Line 44f.
The IRS, in partnership with the Department of Health and Human Services, has also announced a new round of outreach to small employers and professional service providers to encourage them to review the new Small Business Health Care Tax Credit to see if they are eligible.
The small business health care tax credit was included in the Affordable Care Act enacted last year. Small employers that pay at least half of the premiums for employee health insurance coverage under a qualifying arrangement may be eligible for the small business health care tax credit. The credit is specifically targeted to help small businesses and tax-exempt organizations that primarily employ 25 or fewer workers with average income of $50,000 or less.