Four Million Small Businesses Qualify For Healthcare Tax Credit
Written by Ken Gaebler
A recent report shows that four million small businesses could reap savings this tax seasons thanks to the healthcare reform act.
While many have criticized the healthcare reform bill for the financial burden it places on small business owners, a recent report is advocating that entrepreneurs take a second look, especially during tax season.
Research from Sheppard Law Group, which specializes in tax law, recently released some heartening financial news for entrepreneurs. According to the survey, four million small businesses nationwide qualify for the tax credit provided by the bill, which will total approximately $40 billion in tax relief over the next decade.
However, almost half of small businesses don't know they are eligible for the credit, despite the Internal Revenue Service sending millions of postcards to explain the new benefit.
To help small businesses make sense of what can often be confusing language to individuals who are not tax experts, the research suggests contacting a professional who can answer questions such as: "Can my company qualify for both federal and state healthcare tax credits?" and "Does dental and vision coverage qualify for the credit?"
Businesses eligible for the tax credit must employ fewer than 25 full-time employees, making less than $50,000 a year. To qualify for the maximum 35 percent credit, businesses must have no more than 10 workers with an average income of $25,000 or less.
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