Do I qualify for the small business health care tax credit?

Do I qualify for the small business health care tax credit

If you’ve just finished filing your taxes for your business this year, you might not be eager to think ahead already to the next round, but here’s the good news:

If you purchase coverage through the SHOP marketplace for your small business, you could qualify for a significant tax credit.

Here’s what you need to know:

  • If you are eligible, the tax credit is worth up to 50% of how much you pay toward your employees’ premiums
  • You MUST purchase your coverage through the SHOP marketplace to be eligible
  • You also must pay at least 50% of your full-time employees’ premiums to be eligible
  • The tax credit is only offered to small businesses who have 25 or less full-time employees who are making an average of $50,000 or less
  • The smaller your business is (in employee size), the larger the credit will be – particularly in the range of less than 10 employees making an average of $25,000 or less

To see more in-depth information on the tax credit, see the section here on IRS.gov.

As a reminder, even though the national and state run marketplaces such as Covered California are currently closed to individuals, your small business can still find group health coverage through the SHOP program – and you could even save 30 – 50% each month. Just call us at (866) 619-2407 and our agents will help you get started – at no charge from us, ever!