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Discussion Archives:Credit for small employer health insurance premiums - fiscal year end Oct 31, 2010 eligible???

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Discussion Forum Index --> General Chat --> Credit for small employer health insurance premiums - fiscal year end Oct 31, 2010 eligible???


Monroe2008 (talk|edits) said:

29 December 2010

Does a corporate (Form 1120) fiscal yearend October 31, 2010, filer qualify for the Credit for small employer health insurance premiums (assuming all other criteria are met)???

We are working on preparing the corporate tax return due January 15th, 2011, covering the period November 1, 2009, through October 31, 2010.

Nightsnorkeler (talk|edits) said:

29 December 2010
Small Business Health Care Tax Credit: Frequently Asked Questions

Q&A #34: How is the credit applied for an employer with a fiscal tax year?

A. If the employer is a fiscal year taxpayer with a tax year beginning, for example, on July 1, 2010, the credit first applies for the taxable year beginning on July 1, 2010 and ending on June 30, 2011.

Harry Boscoe (talk|edits) said:

29 December 2010
According to IRS Notice 2010-44, "Section 45R is effective for taxable years beginning after December 31, 2009." [emphasis added] Based on that alone, I would think your corporation's year covering the period November 1, 2009, through October 31, 2010, is *not* eligible for whatever this Credit for Small Employers thing is.


Bertkdo (talk|edits) said:

27 January 2011

Does anyone care to speculate how the credit for smally employer health insurance credit is calculated in this situation? Client purchased a business on July 1st 2010 with a year end of December 31, 2010. In calculating the FTEs and average wage limits for this, should the base hours for determinging an FTE be reduced to 1,080? Also, should the wage threshhold for the phaseout be adjusted as well for the short year?

Logically, I am thinking these amounts should be adjusted for the short year, but I have read both IRS Notices, and the Q&A on the IRS website and this situation is not mentioned. Has anyone else run into this?

Rosco (talk|edits) said:

27 January 2011
Well- if the US Supreme Court rules that ObamaCare is unconstitutional, there will be no credit.

오바마 sounded like a "motivational speaker" last Tuesday night. But if he does not reduce spending, then we might all end up "living in a van, down by the river".

Trillium (talk|edits) said:

27 January 2011
Hi - just another request to all that any political comments be kept to the CHAT forum, please. This discussion is was in the tax forum, and therefore it would be have been great if the political comments posted here could be have been edited by their writer to address the tax questions at hand, so that the discussion doesn't didn't need to get yanked over to chat. Thanks. PS - here is the editing FAQ.

The discussion has now been moved to Chat. However, once/if Rosco edits his comments, it could still get moved back to the tax forum at this point...

Makbo (talk|edits) said:

8 July 2012
Here is a current FAQ from IRS web site which answers the previous question.

Q. How are average annual wages and FTEs calculated when the employer has a short taxable year?

A. In accordance with general accounting principles, average annual wages and FTEs may be pro-rated (or annualized) in calculating the section 45R credit. For example, if a small employer has been in business (and paying premiums) for 6 months during its first taxable year, it may pro-rate the employee hours worked and wages earned to reflect the 6 months the employer has been in operation.

Trillium (talk|edits) said:

8 July 2012
I notice that this new Q&A is from the same link that Night provided back when the original post was new, and that this discussion is in Chat due to it having been politicized, and also that there are several other discussions on this topic. Therefore, this discussion will soon be archived.

If you have a current question or follow-up, please post on one of the other discussions on this topic.

Here are links to some of the other discussions on this topic:

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