BENEFITS, TAXES & LICENSES
Small Business Health Care Tax Credit
If you are a business owner who subsidizes all or a portion of your employee's health care coverage, you may be eligible to claim the Small Business Health Care Tax Credit, which can add up to as much as 50% of the employee premiums you pay. To be eligible you must have fewer than 25 full time equivalent employees, their average annual wages must be less than $50,000, you must pay on their behalf a uniform percentage of at least 50% of their health insurance premiums, and they generally must be enrolled in a qualifying health care plan offered through the Small Business Health Options Program (SHOP). The small business health care tax credit is part of the general business credit and can be claimed on your Form 1040.