Physican Practices and the Small Business Health Care Credit

As the deadline for filing extended 2010 tax year returns approaches, the IRS encourages small employers to verify whether they are eligible for the new Small Business Health Care Tax Credit. The credit is designed to help small businesses and tax-exempt organizations that primarily employ 25 or fewer workers with average income of $50,000 or less. Employers that pay at least half of the premiums for employee health insurance coverage under a qualifying arrangement may be eligible for the credit. For tax year 2010, eligible small businesses with no tax liability can carry back unused general business credits (including the small employer health care tax credit) five years, instead of the previous one year carryback period. Furthermore, businesses that locked into health insurance plan structures and contributions for 2010 (and so could not make any needed adjustments to qualify for the credit for 2010) may be eligible to claim the credit on 2011 or later year returns.

About the Author

Reed Tinsley CPA

This article is written by Reed Tinsley, a Houston, TX-based CPA with over 30 years of experience advising physicians and medical practices across Texas and the United States. Reed holds certifications as a Certified Valuation Analyst (CVA), Certified Healthcare Business Consultant (CHBC), and Certified Financial Planner (CFP), specializing exclusively in the healthcare sector. He is a published author, nationally recognized speaker, and trusted advisor to physicians on accounting & tax, practice management, and financial planning. Schedule a Free Consultation.