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The small group tax credit, which will benefit millions of small businesses, has just become more attractive. That’s because the IRS has just released new details clarifying that the tax credit also applies to premiums for dental and vision benefits – not just health benefits. And there’s more good news:
- Eligible companies that already get state tax breaks to help pay premiums can also claim the federal assistance.
- A business owner’s salary won’t be taken into account when figuring out the company’s average wages – helping more firms stay below the cutoff for the federal credit. To qualify for the credit, companies must not employ more than 25 employees and the average annual compensation of those employees cannot exceed $50,000.
- Nonprofits – including churches and other religious congregations – are eligible to claim a partial credit.
See the latest information at irs.gov.