41.14 Small Business Health Tax Credit
If you pay at least half of the premiums for your staff and you meet eligibility requirements, you can claim a tax credit of 35 percent of your payments on Form 8941. The credit is highly complex.
Eligibility.
You must meet these three tests:
Credit amount.
A full credit applies if you have no more than 10 FTEs with average wages of $25,000 per FTE. The credit phases out for those with 10 to 25 FTEs and with wages of $25,000 to $50,000.
The credit is based on the lesser of actual payments or the average premium for the small group market in the states where your employees work (2012 average premiums will be listed in the Form 8941 instructions and in the e-Supplement at jklasser.com).
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