For Immediate Release, 2010
September 10, 2010
|CONTACT: Martha O’Gorman
Chief Marketing Officer
(800) 790-3863 ext. 8022
Liberty Tax Examines How New Health Care Reform Measures Can Benefit Small Businesses This Year
(Virginia Beach, VA) In addition to having a major impact on the structure of health care costs for most Americans, the Affordable Health Care Act is phasing in some immediate tax incentives for small businesses and tax exempt organizations to offer health care for their employees now through 2014. With the IRS release of the proposed Form 8941 Credit for Small Employer Health Insurance Premiums, it’s a little clearer to figure how small businesses may reap a maximum 35% credit on premiums paid for middle and lower income workers in 2010. The maximum credit amount is 25% for tax exempt organizations in 2010. Liberty Tax Service provides free tax advice and a speakers bureau to answer questions directly for individuals and small businesses on the impact of the sweeping health care reform.
“Form 8941 provides a line-by-line set of qualifying criteria for these small businesses ready to tax advantage of these changes,” said John Hewitt, CEO of Liberty Tax Service. “It’s designed to help lower and middle income workers who may not be able to afford health care on their own.”
Liberty Tax has defined these significant factors in determining which small employers and tax exempt organizations can claim the credit:
- Small employers with 24 or fewer full-time or full-time equivalent employees who cover at least half of single coverage health care costs for those employees and paying an average of $25,000 or less in yearly wages. The maximum credit is 35% in 2010-2013, and increases to 50% in 2014. Qualifying small businesses can claim the credit on the new Form 8941.
- Tax exempt organizations with 24 or fewer full-time or full-time equivalent employees who cover at least half of single coverage health care premium costs for their employees and paying an average of $25,000 or less in yearly wages. The maximum credit is 25% in 2010-2013, and increases to 35% in 2014. Tax exempt organizations can claim the credit on Form 990-T for tax filing year 2010.
Employers are not eligible for the credit if they have 25 or more employees, or if average yearly wages are over $50,000.
About Liberty Tax Service
Liberty Tax Service, http://www.libertytax.com, is the fastest-growing retail income tax preparation company in the industry’s history. Founded in 1997 by CEO John T. Hewitt, a pioneer in the tax industry, Liberty Tax Service has prepared over 8,000,000 individual income tax returns. With 41 years of tax industry experience, Hewitt is the most experienced CEO ever in the tax preparation business, having also founded Jackson Hewitt Tax Service (NYSE:JTX). Liberty Tax Service provides computerized income tax preparation, electronic filing, and online filing through eSmart Tax. The Liberty Tax Service franchise opportunity is #9 on the fastest-growing franchises list of the 2010 Entrepreneur “Franchise 500.”