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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 10162
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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I have a client with a 10/1/2015 to 9/30/2015 fiscal year.

Customer Question

I have a client with a 10/1/2015 to 9/30/2015 fiscal year. In the this qualified for the small employer health insurance credit. This year it appears that this credit is not available unless the employer pays premiums through the SHOP market place. Can you verify this?
Submitted: 1 year ago.
Category: Tax
Expert:  Lane replied 1 year ago.

Hi,

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https://www.irs.gov/Affordable-Care-Act/Employers/Small-Business-Health-Care-Tax-Credit-and-the-SHOP-Marketplace

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Yes that's correct

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From the IRS website above: (I'll underline the pertinent part)

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If you are a small employer, there is a tax credit that can put money in your pocket.

The small business health care tax credit benefits employers that:

  • have fewer than 25 full-time equivalent employees
  • pay an average wage of less than $50,000 a year
  • pay at least half of employee health insurance premiums

To be eligible for this credit, you must have purchased coverage through the small business health options program, also known as the SHOP marketplace.

For information about insurance plans offered through the SHOP Marketplace, visit Healthcare.gov.

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Hope this helps

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Lane

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Expert:  Lane replied 1 year ago.

So, PAYING the premiums is not the issue (those, not covered by the credit, are paid directly to the insurance company)

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But the plan must be PURCHASED through the marketplace

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Expert:  Lane replied 1 year ago.

Hope this helps

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If this HAS helped, and you If you don't have additional questions on this, I'd appreciate a positive rating (by clicking the stars on your screen) ... that's the only way I'll be credited with a portion of what you've paid JustAnswer.
...

Lane

.

Expert:  Lane replied 1 year ago.

Did you see my answer?

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