Bruce Jugan, President

The IRS has provided additional information on the tax credit for small businesses that provide health insurance to their employees. The IRS has elaborated on provisions of the small business health care credit with an FAQ; a 3 Step Chart to determine eligiblity; and examples of credit calculations. Click through for an explanation of how the credit calculation works.

On Thursday, April 22, 2010, Reuters reported that "WellPoint ... has specifically targeted women with breast cancer for aggressive investigation with the intent to cancel their policies..." Wellpoint responded today by saying that "this is simply wrong." Interestingly, as I write this, the Reuters article with the allegations has [...]

The IRS has just issued preliminary guidelines on the health insurance tax credit for small businesses - and it looks good. This will make the cost of health insurance more affordable for many small employers. Of major importance is that the owner's wages/salary are not included in the average wage calculation when determining one's eligibility to qualify for the credit. (See answer to questions 13 & 14 in the IRS FAQ.) Businesses with fewer than 10 employees whose average wages are $25,000/yr. or less will qualify for the full credit. The medical insurance tax credit gradually reduces but is available to employers with fewer than 25 employees and average wages that are less than $50,000/yr. If these new guidelines apply to your small business, read on for a basic explanation of how to calculate the tax credit.