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The Small Business Health Care Tax Credit


Information on Yourself

We need to know:

  • If you received subsidies or tax credits from a state for providing health insurance to your employees and
  • Whether or not you are an eligible tax-exempt employer and if so, the amount of your payroll taxes for the year.


We need to know if you received state subsidies or tax credits because if so, your credit may be limited. The portion of the health insurance premiums paid by the state is included with your out-of-pocket share when determining your credit, but the credit itself is limited to the amount you actually pay.

We need to know if you're an eligible tax-exempt employer because if so, the credit is capped at the total of your payroll taxes. The payroll taxes you include are:

  1. Federal income tax you wihheld from your employees' pay,
  2. Medicare tax you withheld, and
  3. Your share of the Medicare tax.