Valuable Credits Available for Certain Small Businesses*

The IRS is reminding small business owners who provide health insurance coverage to employees about the Small Business Health Care Tax Credit.[i]

The agency provides tax relief for some small businesses who want to claim the Small Business Health Care Tax Credit but have faced difficulty finding coverage in the Small Business Health Options Marketplace. Notice 2018-27[ii] provides small businesses with guidance in calculating the tax credit.

Small businesses qualify for the credit by providing their employees with qualified health plans from the Small Business Health Options Program[iii] (SHOP). The credit may only be used for two consecutive tax years.

The credit is available to businesses that first claimed the credit offered through the marketplace but were unable to find SHOP Marketplace coverage in their area.

The IRS states: “Under the relief, the employer can claim the credit for health insurance coverage provided outside of a SHOP Marketplace for the remainder of the credit period if that coverage would have qualified under the rules that applied before January 1, 2014.”

Other details may apply, and you can find more information on the IRS website.

* This information is not intended to be a substitute for specific individualized tax advice. We suggest you discuss your specific tax issues with a qualified tax advisor.

IRS Provides Small Businesses with Tax Videos*

Small business owners looking for tax information can now watch tax videos and webinars by the federal agency.

Video (https://www.irsvideos.gov/) topics include:

Starting a Small Business

  • New business tips
  • Business taxes for the self-employed
  • Who should file for Schedule C
  • Questions to ask accountants
  • Avoiding the big tax mistakes

Business Income

  • Business income and expenses
  • Recordkeeping
  • Tip reporting requirements
  • IRS.gov resources

Employers

  • General employment tax issues
  • Seasonal businesses
  • Employing family members
  • Proper worker classifications
  • Seasonal employees

Filing and Paying Taxes

  • Child and daycare provider tax ordinances
  • Payment alternatives
  • Electronic signature options

A 9-lesson video workshop covers a variety of topics on small business taxes, including paying taxes electronically and establishing retirement plans.

Other details may apply, and you can find more information on the IRS website.

* This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.

Tip adapted from the IRS.gov[iv]

[i] https://www.irs.gov/affordable-care-act/employers/small-business-health-care-tax-credit-and-the-shop-marketplace

[ii] https://www.irs.gov/pub/irs-drop/n-18-27.pdf

[iii] https://www.healthcare.gov/small-businesses/provide-shop-coverage/shop-marketplace-overview/

[iv] https://www.irs.gov/newsroom/irs-issues-guidance-for-small-businesses-about-valuable-credit

Tip adapted from the IRS.gov[i]

[i] https://www.irs.gov/newsroom/irs-video-portal-is-one-stop-shop-featuring-tax-information-for-small-businesses