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Tax Credit Estimator

Learn about Tax Credits

One of the important ways health care reform impacts your business is a new tax credit that may be available to you as a small business owner to help your bottom line. The credit specifically targets small businesses and tax-exempt organizations that primarily employ low- and moderate-income workers. Find out if you could benefit from a tax credit of up to 35 percent.

Eligibility Rules 

• Health care coverage. A qualifying employer must provide health care coverage and contribute at least 50 percent toward the cost of health care coverage based on the single rate.
• Firm size. A qualifying employer must have less than the equivalent of 25 full-time workers (for example, an employer with fewer than 50 half-time workers may be eligible).
• Average annual wage. A qualifying employer must pay average annual wages below $50,000.
• Type of firm. Both taxable (for profit) and tax-exempt firms qualify.

Amount of Credit 

• Maximum amount. The credit is worth up to 35 percent of a small business' premium costs and can be claimed as part of the general business credit starting with the 2010 income tax return filed in 2011. On January 1, 2014, this rate increases to 50 percent.
• Phase-out. The credit phases out gradually for firms with average wages between $25,000 and $50,000 and for firms with the equivalent of between 10 and 25 full-time workers.

How Can I Save More? 

Wellmark provides health insurance plans that can save you more. For greater savings, combine your tax credit with a tax-advantaged health insurance plan.

How Much Will I Save? 

Use the tax credit estimator powered by H&R Block to get an idea of your potential health insurance savings under the Affordable Care Act (ACA).