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Small Business Health Care Tax Credit Deadline May 15

By: 
Paul Shackford, CFO

Information regarding the Small Business Health Care Tax Credit for 2011 is available here in PDF format.

This is the second year that this credit is available to churches that qualify. While there are a number of requirements, if you paid medical insurance premiums during 2011 for clergy and/or lay employees, you may qualify.

Last year, a number of churches in the Diocese of Newark filed and received checks from the IRS, many for about $2,000 to $3,000, but a few for amounts in excess of $10,000.

Note that there is a significant change in the requirements that was not applicable last year. To qualify for the tax credit, the employer must pay a uniform percentage (not less than 50%) of the premium or contribution for each employee enrolled in health insurance coverage offered by the employer. Last year, for example, if a different percentage was used by the church to cover clergy and lay employees, you could file and recover the credit; for the year 2011, you cannot.

The IRS has indicated that the deadline for filing your tax claim is May 15, 2012.  While there is a possibility that extensions may be filed, we strongly urge all congregations to file before the May 15th deadline.