Draft IRS Form Available to Calculate Health Tax Credit for Small Businesses and Nonprofits
The IRS today announced the release of a draft version of the Form 8941 that both small businesses and tax-exempt organizations will use to calculate the small business health care tax credit during the 2011 tax season. The credit is designed to encourage small employers to offer health insurance coverage or maintain the coverage they currently offer their employees.
While small businesses will include the amount of the credit as part of the general business credit on their tax returns, tax-exempt organizations eligible for the refundable credit will claim the credit on a revised Form 990-T. The revised Form 990-T will enable eligible tax-exempt organizations to claim the tax credit even though they owe no tax on unrelated business income.