Many firms missing out on health care tax credit

  • Article by: JACKIE CROSBY , Star Tribune
  • Updated: March 11, 2012 - 10:30 AM

The IRS offers a credit to some small businesses that pay at least half the cost of workers' health insurance, but few seem to know about it.

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  • Comments

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hammarhead1Mar. 9, 12 9:26 PM

25 employees is not a small business. We have 2 full time and 3 part time so we don't qualify.

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chooky2012Mar. 9, 1210:02 PM

"TriangleParkCreative does branding, print and Web design work for nonprofits involved in social justice, economic and environmental sustainability issues." Translation: they do work for organizations funded by the government via the Democratic Party.

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jcinmnMar. 9, 1210:15 PM

It may look good on paper but what small business can afford 25 employees earning $50,000 each? The SBA's definition of small business precludes any business under 150 employees

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th3171Mar. 9, 1211:35 PM

chooky2012--good effort, but your post comes short by a long shot. Next time before posting please do some research on non-profits...I'm sure not all were the result of the DFL.

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skogliciousMar. 10, 12 8:04 AM

I beleive the credit is available for employers with employees up to 25(The Author makes it seem as if you need 25 workers) But if you take the credit you cannot deduct it elsewhere so the 35% deduction is misleading.

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jim2011beamMar. 10, 12 8:42 AM

My understanding of the comments from business people claiming the credit is that it's "nice" but doesn't really make much difference. That's today. There are already plans for expansion, in this election year. Someone pays for the credit that someone else gets. Any idea who it is that pays? Let's get employers out of the insurance business.

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munsterlandrMar. 10, 12 8:50 AM

1) you have to be making money to use the deduction (it is not a "tax credit". 2) most businesses don't average under $50,000 wages when it is calculated in the manner the IRS dictates. 3) in some respects, the deduction calculation is encouraging businesses to keep average workers wages low. 4) if my business is paying 45% of employees premiums why should i increase that to 50% to save 10 cents on the dollar of the increased cost. This was never intended to make any sense. It is just this administration creating a program (that doesn't work) to brag about how they are "helping small business".

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martin68Mar. 10, 12 9:02 AM

Many people are totally opposed to all aspects of Obama care. I'm sure that some are not using the credits because of this. Hopefully, the supreme court will throw out the individual mandate, which will make Obamacare fall apart! If that does not happen, let's repeal the entire plan once we get Obama out of office. Help is on the way!

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chuckdancerMar. 10, 1210:19 AM

..."I'm in the business of graphic design. I'm not in the business of providing health insurance to my colleagues or having them make tough decisions that are going to impact their health and their family's health," he said."... ******************************************* ******************************************* I never have seen a reason why business didn't come forward with a big effort to get themselves out of this health care insurance model. It just doesn't make sense. Workers should be should be handling their own insurance within a universal coverage model. That makes sense.

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jsmart05Mar. 10, 1211:10 AM

It is a credit and not a deduction: The health care credit will reduce any income tax for the business. The credit is non-refundable (meaning it can reduce income tax to at most zero). -------------------- You can't use the same dollars for the credit and then also use them for a deduction. Remember a credit is always better: Small businesses can take both a deduction for health insurance premiums as the health care tax credit. However, the amount of the deduction must be reduced by the amount of the tax credit. ----------------- Any business that is not taking this credit when they are eligible for it needs a new accountant. And if they know about it and choose not to take it....no complaining about high taxes on businesses is allowed.

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