The Small Business Tax Credit Calculator, developed by Tax Credits LLC, is able to complete lines 1 to 14 of Form 8941 for tax preparers in all 50 states.
The calculator computes specific numeric data that qualifying small businesses can use in filing tax returns to take advantage of the Small Business Tax Credit created by the Patient Protection and Affordable Care Act.
"Contrary to many rumors circulating amongst accountants and tax preparers, most small businesses do in fact qualify for substantial tax credits," said Tax Credits LLC president Tim Morrison in a statement. "The calculations are so complex that people without in-depth knowledge of health insurance and health benefits don't understand how they qualify based on the initial explanations of the credit by the IRS. Our calculator provides the variables to maximize this credit and does the work for them, which will enable many more businesses to enjoy the credit they have worked hard for and are entitled to. In addition, the recent IRS notices clarify that small businesses are in fact able to take their qualifying small business tax credit amount and still be able to tax deduct the remaining balance of employer medical premiums paid as they have in previous years."
The calculations are computed through detailed algorithms based on multiple variables per employee, comparison of hours, days or weeks worked to calculate optimal FTE count and average wages to receive the maximum tax credit. As per the most recent clarifications provided by the IRS in notice 2010-82, the tool currently provides the calculations for employees in multiple states in addition to employers receiving state premium credits or subsidies.
The calculator is available for use by tax professionals and self-filers at http://www.smallbusinesstaxcreditcalculator.com.
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