Small Business Health Care Tax Credit

Qualifying small businesses may be eligible for a tax credit relative to premiums paid for health insurance covering its employees.  Small business owners should consult with their tax adviser if they contribute to health care premiums for their employees and are not taking advantage of this tax credit.  The credits have been available since 2010, and can be used for a maximum of six years, from 2010 to 2013 and for any two years thereafter.  The qualifying business with ten or fewer full-time employees and which pays average annual wages of $25,000 could be eligible for the maximum credit, which phases out for firms with 25 or fewer employees or which pay average annual wages of above $50,000.  In addition, to qualify, businesses must pay at least 1/2 of their employees' health coverage.