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Tax refund opportunity for local churches

Tax refund opportunity for local churches

• Does your church have 25 or less employees?
• Do you provide health insurance for these employees?
• Are you paying more than 50% of the cost of the health insurance premiums?
• Is your average annual payroll wages less than $50,000 per person?

If you can answer yes to all of these questions, you may qualify for a refundable tax credit for a percentage of the cost of the employer’s share of the health insurance premiums.

Yes, we said “refundable,” as in money sent back to you from the IRS.  Does this sound too good to be true?   The Credit for Small Employer Health Insurance Premiums was part of the Patient Protection and Affordable Care Act passed by Congress in March of 2010, and was intended to motivate smaller employers into providing health insurance to their employees. 

So, if you answered yes to all of the above questions, follow the link below to find out how to calculate this credit for your church, and how to file once you’ve finished the calculations.  Word of warning:  the calculations sound complicated, but this link will walk you step by step through the process and get you successfully to the other side, and hopefully to a much appreciated refund.

Click here for Form 8941 instructions

Contact:  Sondra McPhail, Compliance Administrator, Florida Conference: