IRS Creates Health Insurance Incentive For Non-Profits

I will preface this quickly by making clear that I am not at all a tax professional. In fact, Federal Income Taxation was by far my least favorite class in law-school. But I thought many organizations might find this tid-bit of information useful.

In an attempt to encourage more small non-profits to offer health-care insurance, the IRS has released final guidance for Form 8941 Credit for Small Employer Health Insurance Premiums.

A measure included best online casino in the Affordable Care Act, the credit allows non-profits to  claim a credit for up to 25% of premiums paid in tax years 2010 through 2013. Starting 2014 the credit will increase to 35%.

However, as usual, there is a strict  list for eligibility. A non-profit must be one listed in 501(c), must have fewer than 25 full-time employees, the annual wages of these employees must be less than $50,000, and the employer must pay at least half of the premiums for single health insurance coverage.

For more information about eligibility, the IRS has created a great page here. On that page, you”ll also find a YouTube video explaining the measure (and you thought the IRS was behind the times.) There is also guidance for filling out the newly revised 990-T (where non-profits will claim the credit) here.