What Months Can I Claim the Tax Credit on 8941?
Our municipality begins their fiscal year July 1st. On July 1, 2014 we provided health insurance to our 10 FTE employees through the Marketplace.
1. Can I file for a health credit beginning January 2014 through December 2014 even though our coverage didn’t begin until July 1, 2014?
2. Or do I file using our fiscal year: July 1, 2014 through June 30, 2015? Or is the credit determined by calendar year?
The SHOP credit claimed on 8941 is determined by calendar year and is claimed for each month you provided qualifying coverage to employees. If you didn't provide coverage for a month, it's simply excluded from the total credit amount. If you provided qualifying coverage in the past, but not through the SHOP, you may still be able to claim credits.
- Starting in 2013 for-profit employers can use the form to get up to 50% of their contribution to employee premiums. Non-profit employers can get up to 35%.
- For 2009-2012 for-profit employers can use the form to get up to 35% of their contribution to employee premiums. Non-profit employers can get up to 25%.
- Credits can be claimed retroactively, although certain rules apply.
For tax years beginning after 2013, the credit period during which the credit can be claimed is a 2 consecutive tax year period beginning with the first tax year in which:
- An eligible small employer (or any predecessor) files an income tax return with an attached Form 8941, or
- A tax-exempt eligible small employer (or any predecessor) files Form 990-T with an attached Form 8941.
Learn more about how to file the 8941 form for Small Employer Tax Credits.