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Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 2863
Experience:  18+ years of experience in tax preparation; 25+ years of experience as a real estate/corporate paralegal.
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Dear Tax Professional, I understand that Small Business

Customer Question

Dear Tax Professional,
I understand that Small Business qualifies the tax credits if it meets with the requirements. Does the tax credit only apply to the employee, or it also applies to their whole family?
For example, ABC Company pays the entire $2,000 monthly health premiums to employee A, including the spouse and dependents. Does the entire $2,000 eligible for the tax credit? I think Dental & Vision are not applicable for the tax credits, correct?
Thank you!
Submitted: 23 days ago.
Category: Tax
Expert:  Barbara replied 22 days ago.

Welcome to Just Answer. My name is ***** ***** I will be happy to assist you.

A small employer is eligible for the credit if (a) it has fewer than 25 full-time equivalent employees, (b) the average annual wages of its employees are less than $50,000 (adjusted for inflation beginning in 2014), and (c) it pays a uniform percentage for all employees that is equal to at least 50% of the premium cost of employee-only insurance coverage.

https://www.irs.gov/uac/small-business-health-care-tax-credit-questions-and-answers-who-gets-the-tax-credit

The following link contains information regarding how the credit is determined for employee only or family coverage:

https://www.irs.gov/uac/small-business-health-care-tax-credit-questions-and-answers-calculating-the-credit

To answer your specific question, the entire $2000 would be eligible for the tax credit.

Please let me know if I can assist you further.

Thank you and best regards,

Barb

Expert:  Barbara replied 18 days ago.

Just following up with you to see if you have any other questions. If so, please let me know so I can further assist you.

Best regards,

Barb

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