Small Nonprofit Health Care Credit Update
If you are a small nonprofit that provides health insurance to your employees, you may be eligible for a refundable tax credit. We have been reporting on this element of the Affordable Care Act over the past several months and encourage you to read the following postings if you haven’t yet:
- March 25, 2010: Small Nonprofits See Immediate Benefit from Passage of Health Care Reform – This article summarizes the passage of the bill and gives early information on the calculation of the credit.
- April 5, 2010: Health Care Reform in Action – This article offers links to some articles about the potential impacts of reform on areas about which nonprofits care.
- September 17, 2010: Update on the Health Care Tax Credit for Nonprofits – This article offers a little more detail on qualifying and calculating the credit.
- November 9, 2010: More Information on the Small Business Health Care Credit – This article chronicles a conversation between the IRS and me. It answers questions like, “If the credit applies to payroll taxes, why are nonprofits claiming it on an income tax form?”
The forms that nonprofits need to complete to calculate and claim the credit are posted on the IRS site. Form 8941 is to calculate the credit and that is in final form. The new 990T is in draft form. If you would like to comment on the new Form 990T, please send your suggestions along to William.P.Woolf@irs.gov.