The Internal Revenue Service (IRS) has issued new guidance to help small businesses determine whether they are eligible for the new health care tax credit under the Affordable Care Act and how large a credit they will receive. “The guidance makes clear that small businesses receiving state health care tax credits may still qualify for the full federal tax credit,” the IRS says. “Additionally, the IRS says “the guidance allows small businesses to receive the credit not only for regular health insurance but also for add-on dental and vision coverage.”
Notice 2010-44 provides detailed guidelines, illustrated by more than a dozen examples, to help small employers determine whether they qualify for the credit and estimate the amount of the credit.
Included in the Affordable Care Act approved by Congress in March and signed into law by the President, the IRS says that “the small business health care tax credit, which is in effect this year, is designed to encourage small employers to offer health insurance coverage for the first time or maintain coverage they already have.”
Here’s a rundown of who’s eligible according to the IRS: