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Common Health Insurance Questions: Am I eligible for the small business health care tax credit?

Common Health Insurance Questions: Am I eligible for the small business health care tax credit?


Find out if you’re eligible for this tax credit for group employee health insurance.


If you’re a small business owner in Springfield, MO, you are likely feeling the effects of the Affordable Care Act. Small businesses with less than 50 full-time employees are not required to provide employees with health insurance benefits, but they ARE still required to make sure their employees are aware of the individual options for health insurance in Springfield, MO available through the Healthcare Marketplace through Obamacare.


Are you a small business owner struggling to provide your employees with health care options? You may qualify for the Small Business Health Care Tax Credit. In order to qualify, you must meet all of the following:


  • You have purchased coverage through the SHOP Marketplace.
  • You have 25 or fewer full-time employees.
  • The average salary of your employees is $50,000 or less.
  • You pay at least 50 percent of your full-time employees’ premiums.


The next obvious question for most business owners reading this is probably: what are the benefits? If you are eligible and claim the tax credit, it could potentially cover half of the cost you put toward your employees’ premiums. For many small business owners, qualifying for this credit may lift a very heavy burden a free up funds to allocate elsewhere. Additionally, the credit is also refundable for tax-exempt businesses if the small business has no taxable income.


If you meet all the qualifications listed above and you’re interested in applying for the Small Business Health Care Tax Credit, you need to fill out a Form 8941 and attach it to your federal tax return.


If you need assistance filling out the Form 8941 or have additional questions about your small business and group employee health insurance coverage options, contact us today. We’ll help you navigate the SHOP Marketplace to find all the answers to your questions.

Do you have more questions about how the Affordable Care Act affects your business? Read our blog What the Affordable Care Act Means for Your Business for answers.


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