Affordable Care Act (Healthcare Reform) and Multicultural Populations cont.
We continue our 12 part blog series on the Affordable Care Act and Multicultural Populations.
How to qualify for the Tax Credit – Part 9
By Martha C. Rivera, Director, Strategy and Insights, and Alejandro Ramos-Martinez, Junior Executive
To qualify for the tax credit, small businesses must cover at least 50 percent of each employee’s health insurance premiums. Small businesses that employ part-time workers are also eligible for help, and their credits are calculated by determining the number of “full-time equivalents” that they employ. For example, two half-time workers count as one full-time worker for the purpose of calculating tax credit eligibility. In addition, small businesses are eligible for the tax credit even if they already receive assistance from their state to help them buy coverage for their workers, and they can continue to deduct the remainder of their health care costs when they file their federal income taxes. In 2014, once the state health insurance Exchanges are up and running, small businesses will be eligible for tax credits of up to 50 percent of the cost of covering their workers through the Exchanges (or a 25 percent refund for nonprofits).
Look for Part 10 of our Affordable Care Act and Multicultural Populations in a future blog.
Source: http://www.kff.org/healthreform
