Posted on Friday January 07, 2011
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Taxpayers now have until April 18, 2011 to file and pay their 2010 taxes.
Posted on Wednesday October 20, 2010
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The question, "What happens if the Bush tax cuts sunset?" may seem a little silly at first.
After all, Congress would never let the cuts from the 2001 and 2003 tax acts sunset in 2011, especially those benefiting lower-income taxpayers, would they? The majority in Congress probably would not want to, but in an election year, when compromises are hard to come by, and with a very full legislative agenda for the rest of the year, many commentators are starting to give even odds to a sunset actually happening.
Of course, like the present no-estate-tax situation, the issue won't be unequivocally solved - or at least resolved one way or another - at the end of this legislative year. The prospect of leaving the "hard choices" to another Congress remains, in which retroactive changes to Jan. 1, 2011, are still an option.
It also may seem like a silly question because everyone is talking about what the sunset would mean: higher marginal rates, higher capital gain and dividend rates, and a return to an estate tax with a high rate and low exemption. But there are a lot of other provisions, especially in the 2001 Act, that also could sunset that are not getting nearly as much attention. You also cannot just go back to your summary of those tax acts to see what could sunset next year. Over the last decade, other tax legislation, particularly the Pension Protection Act of 2006, has eliminated the sunset provisions for certain provisions of the 2001 Act. These include the pension, IRA, and some of the education provisions.
This column will not focus on the marginal rate, capital gain rate, dividend rate, and estate tax issues. Instead, we will try to identify some of these less obvious provisions that could still go away next year if Congress fails to act.
PROVISIONS SUBJECT TO SUNSET
Child Tax Credit. Under the 2001 Act, the Child Tax Credit was to gradually work its way up from $500 to $1,000 in 2010. Subsequent legislation brought us to the $1,000 level much sooner but did not change the sunset. Under current law, the Child Tax Credit reverts to $500 in 2011. As with many of the Bush tax cuts, the reversion to 2001 levels is not adjusted for inflation, despite the fact that the dollar in 2011 will be worth more than it was in 2001, irrespective of the recent economic downturn.
Return of Pease and PEP. The phase-out of exemptions and itemized deductions for higher-income taxpayers has been gradually eliminated since the 2001 Act, until in 2010 they are completely gone. In 2011 the Pease (itemized deductions) and PEP (personal exemptions phase-out) limitations return. Taxpayers who have been increasingly able to take advantage of exemptions and certain itemized deductions may no longer be able to do so.
Marriage penalty relief. Although many provisions of the Tax Code still create a possible marriage penalty, the 2001 Act eliminated the marriage penalty in the standard deduction and in the 15 percent tax bracket. The new 10 percent tax bracket created by the 2001 Act also had no marriage penalty. Although subsequent legislation accelerated the effective dates of some of the relief, the 2011 sunset remained. In 2011, therefore, a possible marriage penalty will return to the standard deduction and 15 percent tax bracket under current law. The marriage penalty relief in the phase-out range for the Earned Income Credit enacted as part of the 2001 Act will also sunset in 2011.
Child and dependent care credit. The 2001 Act increased the percentage and the amounts of the child and dependent care credit. The 35 percent maximum percentage and $3,000/$6,000 maximum credit effective since 2003 would revert in 2011 to a 30 percent maximum percentage and $2,400/$4,800 maximum credit - again, unadjusted for intervening inflation since 2003. The employer-provided child care credit is also scheduled to sunset in 2011.
Adoption credit and exclusion. The doubling of the adoption credit and the exclusion for employer-provided adoption assistance in the 2001 Act is also scheduled to sunset. However, due to a provision in the recent health care legislation, the sunset has been postponed for one year to 2012.
Regularly expiring provisions. Several temporary types of relief introduced in the 2001 Tax Act have become regularly expiring provisions that have been renewed a number of times since their original enactment. These include Alternative Minimum Tax relief in the form of increased exemption amounts and allowance of non-refundable credits, the above-the-line deduction for tuition and fees, and some of the alternative energy vehicle credits. All of these are subject to potential sunset in 2011, but they have, in the case of the energy credits, already been replaced by different credits or they have been subject to expiration so frequently that the 2011 sunset does not seem a particularly unique event.
Presidentially declared disasters. Authority to extend deadlines for presidentially declared disaster areas is also scheduled to sunset in 2011.
Education IRAs. The contribution limits on Coverdell IRAs will revert from $2,000 to $500, and tax-free distributions will no longer be allowed for elementary and secondary education expenses starting in 2011. Also sunsetting in 2011 is the inclusion of graduate programs in employer-provided educational assistance. The increased phase-out range for student loan interest would also go away in 2011, and the 60-month limitation on student loan interest would return.
PROVISIONS NOT SUNSETTING
Thanks primarily to the Pension Protection Act of 2006, a number of provisions of the 2001 Act are no longer subject to sunset in 2011. These include provisions with respect to IRA contribution limits, deemed IRAs, qualified retirement planning services, qualified tuition and 529 college savings plans, qualified plan contribution and benefit limits, catch-up contributions, the start-up credit, the saver's credit, rollover rules, ESOP rules, and top-heavy plan rules.
Also, by separate legislation, the exclusion for restitution payments to victims of Nazi persecution from the 2001 Act was made permanent.
SUMMARY
This list provides a worst-case scenario, if Congress fails to act, or acts in a way contrary to what had been rational expectations as late as last spring. No one expects all of these provisions to sunset, especially those of benefit to lower-income taxpayers.
Still, few people expected the estate tax repeal to actually arrive, and so far survive, in 2010. It is always difficult to predict exactly what Congress will do, and alerting your clients to the possible risks is always timely advice.
George G. Jones, JD, LL.M, is managing editor, and Mark A. Luscombe, JD, LL.M, CPA, is principal analyst, at CCH Tax and Accounting, a Wolters Kluwer business.
Sources:
http://www.webcpa.com/ato_issues/24_11/what-happens-if-the-sun-sets-on-the-bush-tax-cuts-55335-1.html?pg=2
(09/13/2010)
BY GEORGE G. JONES AND MARK A. LUSCOMBE
webcpa "What happens if the sun sets on the Bush tax cuts?"
After all, Congress would never let the cuts from the 2001 and 2003 tax acts sunset in 2011, especially those benefiting lower-income taxpayers, would they? The majority in Congress probably would not want to, but in an election year, when compromises are hard to come by, and with a very full legislative agenda for the rest of the year, many commentators are starting to give even odds to a sunset actually happening.
Of course, like the present no-estate-tax situation, the issue won't be unequivocally solved - or at least resolved one way or another - at the end of this legislative year. The prospect of leaving the "hard choices" to another Congress remains, in which retroactive changes to Jan. 1, 2011, are still an option.
It also may seem like a silly question because everyone is talking about what the sunset would mean: higher marginal rates, higher capital gain and dividend rates, and a return to an estate tax with a high rate and low exemption. But there are a lot of other provisions, especially in the 2001 Act, that also could sunset that are not getting nearly as much attention. You also cannot just go back to your summary of those tax acts to see what could sunset next year. Over the last decade, other tax legislation, particularly the Pension Protection Act of 2006, has eliminated the sunset provisions for certain provisions of the 2001 Act. These include the pension, IRA, and some of the education provisions.
This column will not focus on the marginal rate, capital gain rate, dividend rate, and estate tax issues. Instead, we will try to identify some of these less obvious provisions that could still go away next year if Congress fails to act.
PROVISIONS SUBJECT TO SUNSET
Child Tax Credit. Under the 2001 Act, the Child Tax Credit was to gradually work its way up from $500 to $1,000 in 2010. Subsequent legislation brought us to the $1,000 level much sooner but did not change the sunset. Under current law, the Child Tax Credit reverts to $500 in 2011. As with many of the Bush tax cuts, the reversion to 2001 levels is not adjusted for inflation, despite the fact that the dollar in 2011 will be worth more than it was in 2001, irrespective of the recent economic downturn.
Return of Pease and PEP. The phase-out of exemptions and itemized deductions for higher-income taxpayers has been gradually eliminated since the 2001 Act, until in 2010 they are completely gone. In 2011 the Pease (itemized deductions) and PEP (personal exemptions phase-out) limitations return. Taxpayers who have been increasingly able to take advantage of exemptions and certain itemized deductions may no longer be able to do so.
Marriage penalty relief. Although many provisions of the Tax Code still create a possible marriage penalty, the 2001 Act eliminated the marriage penalty in the standard deduction and in the 15 percent tax bracket. The new 10 percent tax bracket created by the 2001 Act also had no marriage penalty. Although subsequent legislation accelerated the effective dates of some of the relief, the 2011 sunset remained. In 2011, therefore, a possible marriage penalty will return to the standard deduction and 15 percent tax bracket under current law. The marriage penalty relief in the phase-out range for the Earned Income Credit enacted as part of the 2001 Act will also sunset in 2011.
Child and dependent care credit. The 2001 Act increased the percentage and the amounts of the child and dependent care credit. The 35 percent maximum percentage and $3,000/$6,000 maximum credit effective since 2003 would revert in 2011 to a 30 percent maximum percentage and $2,400/$4,800 maximum credit - again, unadjusted for intervening inflation since 2003. The employer-provided child care credit is also scheduled to sunset in 2011.
Adoption credit and exclusion. The doubling of the adoption credit and the exclusion for employer-provided adoption assistance in the 2001 Act is also scheduled to sunset. However, due to a provision in the recent health care legislation, the sunset has been postponed for one year to 2012.
Regularly expiring provisions. Several temporary types of relief introduced in the 2001 Tax Act have become regularly expiring provisions that have been renewed a number of times since their original enactment. These include Alternative Minimum Tax relief in the form of increased exemption amounts and allowance of non-refundable credits, the above-the-line deduction for tuition and fees, and some of the alternative energy vehicle credits. All of these are subject to potential sunset in 2011, but they have, in the case of the energy credits, already been replaced by different credits or they have been subject to expiration so frequently that the 2011 sunset does not seem a particularly unique event.
Presidentially declared disasters. Authority to extend deadlines for presidentially declared disaster areas is also scheduled to sunset in 2011.
Education IRAs. The contribution limits on Coverdell IRAs will revert from $2,000 to $500, and tax-free distributions will no longer be allowed for elementary and secondary education expenses starting in 2011. Also sunsetting in 2011 is the inclusion of graduate programs in employer-provided educational assistance. The increased phase-out range for student loan interest would also go away in 2011, and the 60-month limitation on student loan interest would return.
PROVISIONS NOT SUNSETTING
Thanks primarily to the Pension Protection Act of 2006, a number of provisions of the 2001 Act are no longer subject to sunset in 2011. These include provisions with respect to IRA contribution limits, deemed IRAs, qualified retirement planning services, qualified tuition and 529 college savings plans, qualified plan contribution and benefit limits, catch-up contributions, the start-up credit, the saver's credit, rollover rules, ESOP rules, and top-heavy plan rules.
Also, by separate legislation, the exclusion for restitution payments to victims of Nazi persecution from the 2001 Act was made permanent.
SUMMARY
This list provides a worst-case scenario, if Congress fails to act, or acts in a way contrary to what had been rational expectations as late as last spring. No one expects all of these provisions to sunset, especially those of benefit to lower-income taxpayers.
Still, few people expected the estate tax repeal to actually arrive, and so far survive, in 2010. It is always difficult to predict exactly what Congress will do, and alerting your clients to the possible risks is always timely advice.
George G. Jones, JD, LL.M, is managing editor, and Mark A. Luscombe, JD, LL.M, CPA, is principal analyst, at CCH Tax and Accounting, a Wolters Kluwer business.
Sources:
http://www.webcpa.com/ato_issues/24_11/what-happens-if-the-sun-sets-on-the-bush-tax-cuts-55335-1.html?pg=2
(09/13/2010)
BY GEORGE G. JONES AND MARK A. LUSCOMBE
webcpa "What happens if the sun sets on the Bush tax cuts?"
Posted on Wednesday August 18, 2010
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Employers may qualify for two new tax breaks when they hire someone who
has not worked for more than 40 hours in the past 60 days. These breaks
are part of the Hiring Incentives to Restore Employment (HIRE) Act.
Here’s what you should know.
6.2 percent payroll tax exemption
You may be exempt from your 6.2 percent share of social security tax on wages paid to qualified
employees, effective for wages paid from March 19, 2010, through December 31, 2010. Most
employers will claim it on Form 941, Employer’s QUARTERLY Federal Tax Return, beginning with the
second quarter of 2010. The exemption will also be claimed on annual payroll tax returns such as
Form 944, Employer’s ANNUAL Federal Tax Return.
Tax credit up to $1,000 per worker
You may claim an additional new hire retention credit, up to $1,000 for each qualified employee you keep as an employee for at least a year and whose wages are not significantly reduced in the second half of the year. You claim it on your income tax return for your business, usually in tax year 2011.
Qualified employers
You may qualify for these tax breaks if you are a small or large business, tax-exempt organization, public college or university, Indian tribal government or farmer. But household employers and federal, state and local government employers, other than public colleges and universities, do not qualify.
Qualified employees
Generally, those beginning employment with you after February 3, 2010, and before January 1,
2011, who were either unemployed or worked 40 hours or less for anyone during the previous 60
days can qualify. You must get a Form W-11, or similar signed affidavit, from new hires certifying
they were not employed for more than 40 hours during the 60 days before beginning employment.
Publication 4865 (6-2010) Catalog Number 55220Y Department of the Treasury Internal Revenue Service www.irs.gov
has not worked for more than 40 hours in the past 60 days. These breaks
are part of the Hiring Incentives to Restore Employment (HIRE) Act.
Here’s what you should know.
6.2 percent payroll tax exemption
You may be exempt from your 6.2 percent share of social security tax on wages paid to qualified
employees, effective for wages paid from March 19, 2010, through December 31, 2010. Most
employers will claim it on Form 941, Employer’s QUARTERLY Federal Tax Return, beginning with the
second quarter of 2010. The exemption will also be claimed on annual payroll tax returns such as
Form 944, Employer’s ANNUAL Federal Tax Return.
Tax credit up to $1,000 per worker
You may claim an additional new hire retention credit, up to $1,000 for each qualified employee you keep as an employee for at least a year and whose wages are not significantly reduced in the second half of the year. You claim it on your income tax return for your business, usually in tax year 2011.
Qualified employers
You may qualify for these tax breaks if you are a small or large business, tax-exempt organization, public college or university, Indian tribal government or farmer. But household employers and federal, state and local government employers, other than public colleges and universities, do not qualify.
Qualified employees
Generally, those beginning employment with you after February 3, 2010, and before January 1,
2011, who were either unemployed or worked 40 hours or less for anyone during the previous 60
days can qualify. You must get a Form W-11, or similar signed affidavit, from new hires certifying
they were not employed for more than 40 hours during the 60 days before beginning employment.
Publication 4865 (6-2010) Catalog Number 55220Y Department of the Treasury Internal Revenue Service www.irs.gov
Posted on Monday July 19, 2010
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** From California/Franchise Tax Board Webiste as of 7-19-10**
2010 Tax Credit for New Home / First-Time Buyer
(If you are looking for more information regarding the 2009 New Home Credit, see FTB Publication 3528, New Home Credit, or search using the “Forms & Publications” tab above.)
Important Update (07/13/10): FTB to accept additional First-Time Buyer applications.
As shown in the numbers below, we have received First-Time Buyer applications totaling more than $100 million. We announced in June that we would accept at least 28,000 applications since many we have received are duplicate, revised, or invalid applications. Since that time, we are noticing more and more duplicate and invalid applications in our sampling. Because our computer system is expected to be released by the end of next week, we will soon be able to better estimate the number of possible duplicates. So that we do not risk cutting off the program too soon, we will wait for the computer system to be released before we determine when to stop accepting First-Time Buyer applications. We will continue to update the estimated total number of First-Time Buyer applications each business day. We will announce the cut-off date on this webpage at least one full day before we stop accepting First-Time Buyer applications. The additional applications will be subject to the availability of remaining credits. We will only issue approved certificates of allocation until the $100 million is exhausted. (Updated 07/13/10)
We have not processed any applications yet as our computer system is still being developed. Once our computer system is completed, we will provide weekly updates on the number of certificates that have been mailed and the amount of credits that have been allocated. (Updated 06/17/10)
Fax delays
Due to the high volume of faxes we are receiving, you may experience some delays or difficulties in connecting to our fax number during normal business hours. It can take several minutes or possibly up to an hour to connect and transmit the fax. If you receive a busy signal, try again later. Check your fax confirmation to make sure all pages were transmitted successfully and keep a copy of the fax confirmation. Our fax number is open 24 hours a day so you may fax your application to us during non-business hours when the line is not so busy.
Applying for the 2010 New Home/First-Time Buyer tax credits: Applications must be faxed after escrow closes. We will deny the application if the 2009 form is used, we receive the 2010 application before May 1, 2010, or we receive the application before escrow closes. (Updated 04/28/10).
The New Home / First-Time Buyer Credits are available only for purchases that close escrow on or after May 1, 2010.
General Information: These tax credits are available for taxpayers who purchase a qualified principal residence on or after May 1, 2010, and before January 1, 2011. Additionally, these tax credits are available for taxpayers who purchase a qualified principal residence on or after December 31, 2010, and before August 1, 2011, pursuant to an enforceable contract executed on or before December 31, 2010. The purchase date is defined as the date escrow closes. Taxpayers may apply for the tax credits if they have entered into a contract before May 1, 2010, as long as escrow closes on or after May 1, 2010. However, taxpayers may not request a New Home Credit reservation if they have entered into the contract before May 1, 2010. (Updated 04/28/10)
These tax credits are limited to the lesser of 5 percent of the purchase price or $10,000 for a qualified principal residence. Taxpayers must apply the total tax credit in equal amounts over 3 successive tax years (maximum of $3,333 per year) beginning with the tax year in which the home is purchased. The tax credits cannot reduce regular tax below tentative minimum tax (TMT). The tax credits are 0 and unused credits cannot be carried over.
The total amount of allocated tax credit for all taxpayers may not exceed $100 million for the New Home Credit and $100 million for the First-Time Buyer Credit. However, since many taxpayers will not be able to utilize the entire tax credit, the legislation specifies that the $100 million cap for the New Home Credit will be reduced by 70 percent of the tax credit allocated to each buyer and the $100 million cap for the First-Time Buyer Credit will be reduced by 57 percent of the tax credit allocated to each buyer. For example, if a taxpayer is allocated $10,000 for the New Home Credit, the $100 million cap for the New Home Credit will only be reduced by $7,000. If a taxpayer is allocated $10,000 for the First-Time Buyer Credit, the $100 million cap for the First-Time Buyer Credit will only be reduced by $5,700. The 70 and 57 percent reductions do not impact the amount that can be claimed by the taxpayer.
We will allocate the tax credits on a first-come, first-served basis. We expect it to take 3-6 months to notify taxpayers after an application or reservation is received. We need to develop a computer system to capture, verify, reserve or allocate, issue letters, and track the credits. Please be patient and do not fax an application more than once. Since the First-Time Buyer Credit is expected to be used up very quickly, we will provide estimates, based on sampling, of the number of First-Time Buyer applications and the related credit amounts that we have received beginning May 6, 2010. This will allow First-Time Buyers to estimate whether they will be able to apply for the credit and allow us to determine when we have received enough applications to fully allocate the $100 million and stop accepting First-Time Buyer applications. Since the New Home Credit is not expected to be used up as quickly, we will wait until approximately mid-July after our computer system is available to post information about the New Home Credit usage. (Updated 04/28/10)
Only one tax credit is allowed per taxpayer. If a taxpayer qualifies for both tax credits, the law specifies that we will allocate the amount under the New Home Credit.
Taxpayers will not be eligible for either tax credit if any of the following apply:
The taxpayer was allowed a 2009 New Home Credit.
The taxpayer is under 18 years old. (A taxpayer who is married as of the date of purchase will be considered to be 18 if the spouse/registered domestic partner (RDP) of the taxpayer is 18 or older on the date of purchase.)
The taxpayer or the taxpayer’s spouse/RDP is related to the seller.
The taxpayer qualifies as a dependent of any other taxpayer for the tax year of the purchase.
New Home Credit: A qualified principal residence, for purposes of the New Home Credit, must:
Be a single family residence, either detached or attached. This can be a single family residence, a condominium, a unit in a cooperative project, a house boat, a manufactured home, or a mobile home. A home constructed by the taxpayer is not eligible since the home has not been "purchased."
Have never been occupied. Sellers must certify that the home has never been occupied in order for a taxpayer to receive an allocation of the credit.
Be eligible for the California property tax homeowner’s exemption.
Be occupied by the taxpayer as their principal residence for a minimum of 2 years immediately following the purchase.
Tax credit allocation:
A Certificate of Allocation will not be issued if:
The seller does not certify the home has never been occupied.
We do not receive the application and a copy of the properly executed settlement statement within 2 weeks (14 calendar days) after the close of escrow, regardless of whether a reservation request was submitted.
We receive the application or reservation request after the total tax credits available have been allocated.
FTB's determination may not be protested or appealed.
Reserving a New Home Credit Before Escrow Closes: Taxpayers who qualify for the New Home Credit may, but are not required to, request a reservation prior to the close of escrow. Reservations will become important as we near the $100 million cap for homes that may not close escrow before the cap is reached, as a reservation will "hold the taxpayer's place in line" until 2 weeks after escrow closes. Taxpayers may only request a reservation if they have entered into an enforceable contract on or after May 1, 2010, and on or before December 31, 2010. Taxpayers may not reserve a credit if the contract was entered into before May 1, 2010. Taxpayers who only qualify for the First-Time Buyer Credit may not request a reservation.
Requesting or receiving a reservation does not guarantee the credit. An application must still be completed and faxed to FTB along with the final settlement statement within two weeks after the close of escrow. If a buyer requests a reservation and the purchase is cancelled, the buyer must notify FTB. (Updated 04/28/10)
First-Time Buyer Credit: A qualified principal residence, for purposes of the First-Time Buyer Credit, must:
Be a single family residence, either detached or attached. This can be a single family residence, a condominium, a unit in a cooperative project, a house boat, a manufactured home, or a mobile home. A home constructed by the taxpayer is not eligible since the home has not been "purchased."
Be eligible for the California property tax homeowner’s exemption.
Be occupied by the taxpayer as their principal residence for a minimum of 2 years immediately following the purchase.
A first-time buyer is any individual (and the individual’s spouse/RDP, if married on the date of purchase) who did not have an ownership interest in a principal residence, either in or out of California, during the preceding 3 year period ending on the date of the purchase of the qualified principal residence. If the buyer is married on the date of purchase and either the buyer or the buyer's spouse/RDP had an ownership interest in a principal residence during the preceding 3 year period, the buyer does not qualify for the First-Time Buyer Credit even if the spouse/RDP is not going to be on title.
Tax credit allocation:
A Certificate of Allocation will not be issued if:
We do not receive the application and a copy of the properly executed settlement statement within 2 weeks (14 calendar days) after the close of escrow.
We receive the application after the total tax credits available have been allocated.
FTB's determination may not be protested or appealed.
Estimated applications received for First-Time Buyer Credit as of 07/16/10
The figures shown below are only estimates, based on small samples. The numbers are overstated as there will be duplicate, revised, and invalid applications included as we have not verified any of the applications. These estimates are only provided to give a general idea of the number of applications received and the amount requested for the First-Time Buyer Credit. We are showing 57% of the estimated requested credit since the $100 million cap will only be reduced by 57% of the credit allocated to the buyer. The amounts do not reflect actual amounts which will be allocated. These estimates will be updated each Thursday until we are sure that we have received more than enough applications to allocate the full $100 million. Once we determine that we have received sufficient applications to allocate the full $100 million, we will stop accepting applications for the First-Time Buyer Credit. Estimates for the New Home Credit will be provided once our computer system is completed.
Applications for First-Time Buyer Credit received as of 07/16/10
As of Estimated Total First-Time Buyer Applications Received 57% of Estimated Requested Credit
05/04/10 430 $ 2,351,000
05/11/10 2,470 $ 13,283,000
05/18/10 4,830 $ 25,473,000
05/25/10 7,330 $ 38,357,000
06/01/10 9,760 $ 50,948,000
06/08/10 12,740 $ 65,787,000
06/15/10 15,220 $ 78,108,000
06/22/10 17,860 $ 91,404,000
06/29/10 20,760 $ 105,898,000
07/06/10 23,680
07/09/10 25,120
07/12/10 25,790
07/13/10 26,260
07/14/10 26,670
07/15/10 26,980
07/16/10 27,230
Estimated applications and reservation requests received for New Home Credit as of 07/13/10
The figures shown below are only estimates, based on small samples. Our computer system has not been completed, so we have not started processing the applications and reservation requests. The numbers are overstated as there will be duplicate, revised, and invalid applications included as we have not verified any of the applications. In addition, some purchases may be included twice if we have received both a reservation request and an application for the purchase. These estimates are only provided to give a general idea of the number of applications and reservation requests received and the combined amount requested for the New Home Credit. We are showing 70% of the estimated requested credit since the $100 million cap will only be reduced by 70% of the credit allocated to the buyer. The amounts do not reflect actual amounts which will be allocated. These estimates will be updated each Thursday until we are sure that we have received more than enough applications to allocate the full $100 million. Once we determine that we have received sufficient applications and reservation requests to allocate the full $100 million, we will stop accepting reservation requests and applications for the New Home Credit.
Reservation requests and applications for New Home Credit received as of 07/13/10
As of Estimated Reservation Requests Received Estimated Applications Received Estimated Total Reservation Requests and Applications Received 70% of Estimated Total Requested Credit
06/15/10 1,930 3,700 5,630 $ 36,360,000
06/22/10 2,250 4,180 6,430 $ 41,683,000
06/29/10 2,600 5,150 7,750 $ 50,136,000
07/06/10 2,850 5,950 8,800 $ 57,191,000
07/13/10 3,180 6,450 9,630 $ 62,614,000
How to apply (Updated 04/28/10)
Applications: We will accept applications by fax only beginning May 1, 2010. Do not use the 2009 application. Applications received before May 1, 2010, or before escrow closes will be denied.
Within two weeks (14 calendar days) after the close of escrow:
The seller must complete Parts II, III, and also Part IV (if the home has never been occupied) of Form 3549-A, Application for New Home / First-Time Buyer Credit, and provide a copy to the buyer or escrow person.
The buyer will complete Parts I, V & VI of Form 3549-A.
Fax the completed Form 3549-A and the final settlement statement (generally the buyer's HUD-1 statement) to FTB at 916.855.5577. It is best that the escrow company, on behalf of the buyer, fax the completed application and settlement statement to FTB and provide a copy to the buyer. (The buyer retains ultimate responsibility to ensure the completed application and settlement statement are submitted timely to the FTB.)
Fax is the only delivery method that will be accepted and considered for credit allocation by FTB, as the date and time stamp on the fax will determine the order in which credits are allocated. Check the fax confirmation to make sure you sent it to the correct fax number. The date and time applications are received may not be reviewed in any administrative or judicial proceeding.
Fax only one completed application per residence with all qualified buyers listed. Do not include information on nonqualified buyers. An incomplete application may delay or prevent credit allocation.
Do not fax the application to FTB before escrow closes.
Do not fax the application to FTB more than once. We will process the applications in the order received as quickly as possible.
Only send one application per fax transmission. Including more than one application in the fax transmission will cause delay and may even cause an application to be skipped.
The buyer keeps a copy of the completed Form 3549-A for their records.
Please use the online fillable Form 3549-A. Simply fill in all required information, print the form, and sign. If you fill out any portion of the form by hand, please print as clearly and neatly as possible using CAPITAL LETTERS and stay between the lines as the faxes can be very hard to read.
Reservation Requests: We will accept reservation requests for the New Home Credit by fax only beginning May 1, 2010. If you are applying for the First-Time Buyer Credit, you will not be able to request a reservation before escrow closes. Reservation requests received before May 1, 2010, or after escrow closes will be denied.
If a buyer wishes to request a reservation, before the close of escrow:
The seller must complete Parts I, II, & III of Form 3549-RR, Reservation Request for New Home Credit.
The buyer completes Parts IV & V.
Fax the completed Form 3549-RR and the required pages of the purchase agreement to FTB at 916.855.5577. If escrow has opened, it is best for the escrow person, on behalf of the buyer and seller, to fax the completed Form 3549-RR and the required pages of the purchase agreement to FTB and provide a copy to the buyer. If escrow has not opened, the buyer may fax it to FTB. (The buyer retains ultimate responsibility to ensure the completed reservation request and the required pages of the purchase agreement are submitted timely to the FTB.)
Do not fax the entire purchase agreement. Only fax the pages which show:
Property address
Buyer's name
Seller's name
Purchase price
Deposit amount
Buyer's signature
Seller's signature
Fax is the only delivery method that will be accepted and considered for credit reservation by FTB, as the date and time stamp on the fax will determine the order in which credits are reserved. Check the fax confirmation to make sure you sent it to the correct fax number. The date and time reservation requests are received may not be reviewed in any administrative or judicial proceeding.
Fax only one completed reservation request per residence with all qualified buyers listed. Do not include information on nonqualified buyers. An incomplete request may delay or prevent the reservation.
Do not fax the reservation request if the contract was entered into before May 1, 2010.
Do not fax the reservation request to FTB after escrow closes or with the application (Form 3549-A).
Do not fax the reservation request to FTB more than once. We will process the requests in the order received as quickly as possible.
Only send one reservation request per fax transmission. Including more than one request in the fax transmission will cause delay and may even cause a request to be skipped.
The buyer keeps a copy of the completed Form 3549-RR for their records.
Please use the online fillable Form 3549-RR. Simply fill in all required information, print the form, and sign. If you fill out any portion of the form by hand, please print as clearly and neatly as possible using CAPITAL LETTERS and stay between the lines as the faxes can be very hard to read.
Claiming the tax credit:
The taxpayer must receive a Certificate of Allocation from us to claim the tax credit on their California personal income tax return. The Certificate of Allocation will state the maximum amount the taxpayer can claim listed by tax year.
The taxpayer should refer to the 2010 New Home / First-Time Buyer Credit Publication for instructions on claiming the tax credit (the publication will be available after December 15, 2010).
Special rules apply to married/RDP taxpayers filing separately, in which case each spouse/RDP is entitled to one-half of the tax credit, even if their ownership percentages are not equal. For 2 or more taxpayers who are not married/RDP, the tax credit amount will have already been allocated to each taxpayer occupying the residence on their respective tax credit allocation letter.
If the available tax credit exceeds the current year net tax, the unused tax credit may not be carried over to the following tax year.
The tax credit may not reduce regular tax below TMT.
The tax credit is not refundable.
Any disallowance of the tax credit may not be protested or appealed.
More Information
New Home / First-Time Buyer Frequently Asked Questions (Updated 06/03/10)
Contact Us:
888.792.4900 (press 1)
916.845.4900 (not toll-free)
Email: wscs.gen@ftb.ca.gov
.
2010 Tax Credit for New Home / First-Time Buyer
(If you are looking for more information regarding the 2009 New Home Credit, see FTB Publication 3528, New Home Credit, or search using the “Forms & Publications” tab above.)
Important Update (07/13/10): FTB to accept additional First-Time Buyer applications.
As shown in the numbers below, we have received First-Time Buyer applications totaling more than $100 million. We announced in June that we would accept at least 28,000 applications since many we have received are duplicate, revised, or invalid applications. Since that time, we are noticing more and more duplicate and invalid applications in our sampling. Because our computer system is expected to be released by the end of next week, we will soon be able to better estimate the number of possible duplicates. So that we do not risk cutting off the program too soon, we will wait for the computer system to be released before we determine when to stop accepting First-Time Buyer applications. We will continue to update the estimated total number of First-Time Buyer applications each business day. We will announce the cut-off date on this webpage at least one full day before we stop accepting First-Time Buyer applications. The additional applications will be subject to the availability of remaining credits. We will only issue approved certificates of allocation until the $100 million is exhausted. (Updated 07/13/10)
We have not processed any applications yet as our computer system is still being developed. Once our computer system is completed, we will provide weekly updates on the number of certificates that have been mailed and the amount of credits that have been allocated. (Updated 06/17/10)
Fax delays
Due to the high volume of faxes we are receiving, you may experience some delays or difficulties in connecting to our fax number during normal business hours. It can take several minutes or possibly up to an hour to connect and transmit the fax. If you receive a busy signal, try again later. Check your fax confirmation to make sure all pages were transmitted successfully and keep a copy of the fax confirmation. Our fax number is open 24 hours a day so you may fax your application to us during non-business hours when the line is not so busy.
Applying for the 2010 New Home/First-Time Buyer tax credits: Applications must be faxed after escrow closes. We will deny the application if the 2009 form is used, we receive the 2010 application before May 1, 2010, or we receive the application before escrow closes. (Updated 04/28/10).
The New Home / First-Time Buyer Credits are available only for purchases that close escrow on or after May 1, 2010.
General Information: These tax credits are available for taxpayers who purchase a qualified principal residence on or after May 1, 2010, and before January 1, 2011. Additionally, these tax credits are available for taxpayers who purchase a qualified principal residence on or after December 31, 2010, and before August 1, 2011, pursuant to an enforceable contract executed on or before December 31, 2010. The purchase date is defined as the date escrow closes. Taxpayers may apply for the tax credits if they have entered into a contract before May 1, 2010, as long as escrow closes on or after May 1, 2010. However, taxpayers may not request a New Home Credit reservation if they have entered into the contract before May 1, 2010. (Updated 04/28/10)
These tax credits are limited to the lesser of 5 percent of the purchase price or $10,000 for a qualified principal residence. Taxpayers must apply the total tax credit in equal amounts over 3 successive tax years (maximum of $3,333 per year) beginning with the tax year in which the home is purchased. The tax credits cannot reduce regular tax below tentative minimum tax (TMT). The tax credits are 0 and unused credits cannot be carried over.
The total amount of allocated tax credit for all taxpayers may not exceed $100 million for the New Home Credit and $100 million for the First-Time Buyer Credit. However, since many taxpayers will not be able to utilize the entire tax credit, the legislation specifies that the $100 million cap for the New Home Credit will be reduced by 70 percent of the tax credit allocated to each buyer and the $100 million cap for the First-Time Buyer Credit will be reduced by 57 percent of the tax credit allocated to each buyer. For example, if a taxpayer is allocated $10,000 for the New Home Credit, the $100 million cap for the New Home Credit will only be reduced by $7,000. If a taxpayer is allocated $10,000 for the First-Time Buyer Credit, the $100 million cap for the First-Time Buyer Credit will only be reduced by $5,700. The 70 and 57 percent reductions do not impact the amount that can be claimed by the taxpayer.
We will allocate the tax credits on a first-come, first-served basis. We expect it to take 3-6 months to notify taxpayers after an application or reservation is received. We need to develop a computer system to capture, verify, reserve or allocate, issue letters, and track the credits. Please be patient and do not fax an application more than once. Since the First-Time Buyer Credit is expected to be used up very quickly, we will provide estimates, based on sampling, of the number of First-Time Buyer applications and the related credit amounts that we have received beginning May 6, 2010. This will allow First-Time Buyers to estimate whether they will be able to apply for the credit and allow us to determine when we have received enough applications to fully allocate the $100 million and stop accepting First-Time Buyer applications. Since the New Home Credit is not expected to be used up as quickly, we will wait until approximately mid-July after our computer system is available to post information about the New Home Credit usage. (Updated 04/28/10)
Only one tax credit is allowed per taxpayer. If a taxpayer qualifies for both tax credits, the law specifies that we will allocate the amount under the New Home Credit.
Taxpayers will not be eligible for either tax credit if any of the following apply:
The taxpayer was allowed a 2009 New Home Credit.
The taxpayer is under 18 years old. (A taxpayer who is married as of the date of purchase will be considered to be 18 if the spouse/registered domestic partner (RDP) of the taxpayer is 18 or older on the date of purchase.)
The taxpayer or the taxpayer’s spouse/RDP is related to the seller.
The taxpayer qualifies as a dependent of any other taxpayer for the tax year of the purchase.
New Home Credit: A qualified principal residence, for purposes of the New Home Credit, must:
Be a single family residence, either detached or attached. This can be a single family residence, a condominium, a unit in a cooperative project, a house boat, a manufactured home, or a mobile home. A home constructed by the taxpayer is not eligible since the home has not been "purchased."
Have never been occupied. Sellers must certify that the home has never been occupied in order for a taxpayer to receive an allocation of the credit.
Be eligible for the California property tax homeowner’s exemption.
Be occupied by the taxpayer as their principal residence for a minimum of 2 years immediately following the purchase.
Tax credit allocation:
A Certificate of Allocation will not be issued if:
The seller does not certify the home has never been occupied.
We do not receive the application and a copy of the properly executed settlement statement within 2 weeks (14 calendar days) after the close of escrow, regardless of whether a reservation request was submitted.
We receive the application or reservation request after the total tax credits available have been allocated.
FTB's determination may not be protested or appealed.
Reserving a New Home Credit Before Escrow Closes: Taxpayers who qualify for the New Home Credit may, but are not required to, request a reservation prior to the close of escrow. Reservations will become important as we near the $100 million cap for homes that may not close escrow before the cap is reached, as a reservation will "hold the taxpayer's place in line" until 2 weeks after escrow closes. Taxpayers may only request a reservation if they have entered into an enforceable contract on or after May 1, 2010, and on or before December 31, 2010. Taxpayers may not reserve a credit if the contract was entered into before May 1, 2010. Taxpayers who only qualify for the First-Time Buyer Credit may not request a reservation.
Requesting or receiving a reservation does not guarantee the credit. An application must still be completed and faxed to FTB along with the final settlement statement within two weeks after the close of escrow. If a buyer requests a reservation and the purchase is cancelled, the buyer must notify FTB. (Updated 04/28/10)
First-Time Buyer Credit: A qualified principal residence, for purposes of the First-Time Buyer Credit, must:
Be a single family residence, either detached or attached. This can be a single family residence, a condominium, a unit in a cooperative project, a house boat, a manufactured home, or a mobile home. A home constructed by the taxpayer is not eligible since the home has not been "purchased."
Be eligible for the California property tax homeowner’s exemption.
Be occupied by the taxpayer as their principal residence for a minimum of 2 years immediately following the purchase.
A first-time buyer is any individual (and the individual’s spouse/RDP, if married on the date of purchase) who did not have an ownership interest in a principal residence, either in or out of California, during the preceding 3 year period ending on the date of the purchase of the qualified principal residence. If the buyer is married on the date of purchase and either the buyer or the buyer's spouse/RDP had an ownership interest in a principal residence during the preceding 3 year period, the buyer does not qualify for the First-Time Buyer Credit even if the spouse/RDP is not going to be on title.
Tax credit allocation:
A Certificate of Allocation will not be issued if:
We do not receive the application and a copy of the properly executed settlement statement within 2 weeks (14 calendar days) after the close of escrow.
We receive the application after the total tax credits available have been allocated.
FTB's determination may not be protested or appealed.
Estimated applications received for First-Time Buyer Credit as of 07/16/10
The figures shown below are only estimates, based on small samples. The numbers are overstated as there will be duplicate, revised, and invalid applications included as we have not verified any of the applications. These estimates are only provided to give a general idea of the number of applications received and the amount requested for the First-Time Buyer Credit. We are showing 57% of the estimated requested credit since the $100 million cap will only be reduced by 57% of the credit allocated to the buyer. The amounts do not reflect actual amounts which will be allocated. These estimates will be updated each Thursday until we are sure that we have received more than enough applications to allocate the full $100 million. Once we determine that we have received sufficient applications to allocate the full $100 million, we will stop accepting applications for the First-Time Buyer Credit. Estimates for the New Home Credit will be provided once our computer system is completed.
Applications for First-Time Buyer Credit received as of 07/16/10
As of Estimated Total First-Time Buyer Applications Received 57% of Estimated Requested Credit
05/04/10 430 $ 2,351,000
05/11/10 2,470 $ 13,283,000
05/18/10 4,830 $ 25,473,000
05/25/10 7,330 $ 38,357,000
06/01/10 9,760 $ 50,948,000
06/08/10 12,740 $ 65,787,000
06/15/10 15,220 $ 78,108,000
06/22/10 17,860 $ 91,404,000
06/29/10 20,760 $ 105,898,000
07/06/10 23,680
07/09/10 25,120
07/12/10 25,790
07/13/10 26,260
07/14/10 26,670
07/15/10 26,980
07/16/10 27,230
Estimated applications and reservation requests received for New Home Credit as of 07/13/10
The figures shown below are only estimates, based on small samples. Our computer system has not been completed, so we have not started processing the applications and reservation requests. The numbers are overstated as there will be duplicate, revised, and invalid applications included as we have not verified any of the applications. In addition, some purchases may be included twice if we have received both a reservation request and an application for the purchase. These estimates are only provided to give a general idea of the number of applications and reservation requests received and the combined amount requested for the New Home Credit. We are showing 70% of the estimated requested credit since the $100 million cap will only be reduced by 70% of the credit allocated to the buyer. The amounts do not reflect actual amounts which will be allocated. These estimates will be updated each Thursday until we are sure that we have received more than enough applications to allocate the full $100 million. Once we determine that we have received sufficient applications and reservation requests to allocate the full $100 million, we will stop accepting reservation requests and applications for the New Home Credit.
Reservation requests and applications for New Home Credit received as of 07/13/10
As of Estimated Reservation Requests Received Estimated Applications Received Estimated Total Reservation Requests and Applications Received 70% of Estimated Total Requested Credit
06/15/10 1,930 3,700 5,630 $ 36,360,000
06/22/10 2,250 4,180 6,430 $ 41,683,000
06/29/10 2,600 5,150 7,750 $ 50,136,000
07/06/10 2,850 5,950 8,800 $ 57,191,000
07/13/10 3,180 6,450 9,630 $ 62,614,000
How to apply (Updated 04/28/10)
Applications: We will accept applications by fax only beginning May 1, 2010. Do not use the 2009 application. Applications received before May 1, 2010, or before escrow closes will be denied.
Within two weeks (14 calendar days) after the close of escrow:
The seller must complete Parts II, III, and also Part IV (if the home has never been occupied) of Form 3549-A, Application for New Home / First-Time Buyer Credit, and provide a copy to the buyer or escrow person.
The buyer will complete Parts I, V & VI of Form 3549-A.
Fax the completed Form 3549-A and the final settlement statement (generally the buyer's HUD-1 statement) to FTB at 916.855.5577. It is best that the escrow company, on behalf of the buyer, fax the completed application and settlement statement to FTB and provide a copy to the buyer. (The buyer retains ultimate responsibility to ensure the completed application and settlement statement are submitted timely to the FTB.)
Fax is the only delivery method that will be accepted and considered for credit allocation by FTB, as the date and time stamp on the fax will determine the order in which credits are allocated. Check the fax confirmation to make sure you sent it to the correct fax number. The date and time applications are received may not be reviewed in any administrative or judicial proceeding.
Fax only one completed application per residence with all qualified buyers listed. Do not include information on nonqualified buyers. An incomplete application may delay or prevent credit allocation.
Do not fax the application to FTB before escrow closes.
Do not fax the application to FTB more than once. We will process the applications in the order received as quickly as possible.
Only send one application per fax transmission. Including more than one application in the fax transmission will cause delay and may even cause an application to be skipped.
The buyer keeps a copy of the completed Form 3549-A for their records.
Please use the online fillable Form 3549-A. Simply fill in all required information, print the form, and sign. If you fill out any portion of the form by hand, please print as clearly and neatly as possible using CAPITAL LETTERS and stay between the lines as the faxes can be very hard to read.
Reservation Requests: We will accept reservation requests for the New Home Credit by fax only beginning May 1, 2010. If you are applying for the First-Time Buyer Credit, you will not be able to request a reservation before escrow closes. Reservation requests received before May 1, 2010, or after escrow closes will be denied.
If a buyer wishes to request a reservation, before the close of escrow:
The seller must complete Parts I, II, & III of Form 3549-RR, Reservation Request for New Home Credit.
The buyer completes Parts IV & V.
Fax the completed Form 3549-RR and the required pages of the purchase agreement to FTB at 916.855.5577. If escrow has opened, it is best for the escrow person, on behalf of the buyer and seller, to fax the completed Form 3549-RR and the required pages of the purchase agreement to FTB and provide a copy to the buyer. If escrow has not opened, the buyer may fax it to FTB. (The buyer retains ultimate responsibility to ensure the completed reservation request and the required pages of the purchase agreement are submitted timely to the FTB.)
Do not fax the entire purchase agreement. Only fax the pages which show:
Property address
Buyer's name
Seller's name
Purchase price
Deposit amount
Buyer's signature
Seller's signature
Fax is the only delivery method that will be accepted and considered for credit reservation by FTB, as the date and time stamp on the fax will determine the order in which credits are reserved. Check the fax confirmation to make sure you sent it to the correct fax number. The date and time reservation requests are received may not be reviewed in any administrative or judicial proceeding.
Fax only one completed reservation request per residence with all qualified buyers listed. Do not include information on nonqualified buyers. An incomplete request may delay or prevent the reservation.
Do not fax the reservation request if the contract was entered into before May 1, 2010.
Do not fax the reservation request to FTB after escrow closes or with the application (Form 3549-A).
Do not fax the reservation request to FTB more than once. We will process the requests in the order received as quickly as possible.
Only send one reservation request per fax transmission. Including more than one request in the fax transmission will cause delay and may even cause a request to be skipped.
The buyer keeps a copy of the completed Form 3549-RR for their records.
Please use the online fillable Form 3549-RR. Simply fill in all required information, print the form, and sign. If you fill out any portion of the form by hand, please print as clearly and neatly as possible using CAPITAL LETTERS and stay between the lines as the faxes can be very hard to read.
Claiming the tax credit:
The taxpayer must receive a Certificate of Allocation from us to claim the tax credit on their California personal income tax return. The Certificate of Allocation will state the maximum amount the taxpayer can claim listed by tax year.
The taxpayer should refer to the 2010 New Home / First-Time Buyer Credit Publication for instructions on claiming the tax credit (the publication will be available after December 15, 2010).
Special rules apply to married/RDP taxpayers filing separately, in which case each spouse/RDP is entitled to one-half of the tax credit, even if their ownership percentages are not equal. For 2 or more taxpayers who are not married/RDP, the tax credit amount will have already been allocated to each taxpayer occupying the residence on their respective tax credit allocation letter.
If the available tax credit exceeds the current year net tax, the unused tax credit may not be carried over to the following tax year.
The tax credit may not reduce regular tax below TMT.
The tax credit is not refundable.
Any disallowance of the tax credit may not be protested or appealed.
More Information
New Home / First-Time Buyer Frequently Asked Questions (Updated 06/03/10)
Contact Us:
888.792.4900 (press 1)
916.845.4900 (not toll-free)
Email: wscs.gen@ftb.ca.gov
.
Posted on Monday May 24, 2010
no comments
The Small Business Health Care Tax Credit helps small businesses and small taxexempt organizations afford the cost of covering their employees.
Received a Postcard from the IRS?
Millions of small employers will receive postcards from the IRS beginning the week of April 19 that alert them to the new Small Business Health Care Tax Credit and encourage them to check their eligibility. Even if you don't receive a postcard, your business still may be eligible. Read more about this effort.
Eligibility Rules
Providing health care coverage. A qualifying employer must cover at least 50 percent of the cost of health care coverage for some of its workers 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.
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 in 2010. On Jan. 1, 2014, this rate increases to 50 percent (35 percent for tax-exempt employers).
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.
Three Simple Steps for Employers to Qualify
To determine if your small business or tax exempt organization qualifies for the Small Business Health Care Tax Credit, follow the three simple steps on our fact sheet.
Examples
Scenarios illustrate how the credit applies to employers in different circumstances.
Questions and Answers
Need more detailed information? We have answers.
YouTube Primer on Health Care Credit
This new video explains the who, what, why and how of the Small Business Health Care Tax Credit.
For More Information
New guidance makes it easier for small businesses to determine whether they're eligible for the new health care tax credit under the Affordable Care Act and how large a credit they'll receive.
Millions of small employers will receive postcards from the IRS beginning the week of April 19 that alert them to the new Small Business Health Care Tax Credit and encourage them to check their eligibility. Even if you don't receive a postcard, your business still may be eligible. Read more about this effort.
Eligibility Rules
Providing health care coverage. A qualifying employer must cover at least 50 percent of the cost of health care coverage for some of its workers 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.
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 in 2010. On Jan. 1, 2014, this rate increases to 50 percent (35 percent for tax-exempt employers).
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.
Three Simple Steps for Employers to Qualify
To determine if your small business or tax exempt organization qualifies for the Small Business Health Care Tax Credit, follow the three simple steps on our fact sheet.
Examples
Scenarios illustrate how the credit applies to employers in different circumstances.
Questions and Answers
Need more detailed information? We have answers.
YouTube Primer on Health Care Credit
This new video explains the who, what, why and how of the Small Business Health Care Tax Credit.
For More Information
New guidance makes it easier for small businesses to determine whether they're eligible for the new health care tax credit under the Affordable Care Act and how large a credit they'll receive.
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