Small Business Health Care Credit
Credit for small businesses that provide health insurance coverage to their employees through the SHOP marketplace.
Estimate Your Savings
This is a simplified estimate. Actual savings depend on your complete tax situation.
Eligibility
Small employers providing health insurance to employees
Requirements
- 1Fewer than 25 full-time equivalent employees
- 2Average wages below $58,000
- 3Must pay at least 50% of employee premiums
- 4Must purchase through SHOP marketplace
Required Tax Forms
Understanding the Small Business Health Care Credit
Credit for small businesses that provide health insurance coverage to their employees through the SHOP marketplace.
Tax credits directly reduce the amount of tax you owe, making them more valuable than deductions which only reduce taxable income. On average, taxpayers save approximately $8,000 with this credit.
To claim this credit, you will need to file Form 8941 and Form 3800 with your annual tax return. Make sure you meet all eligibility requirements and keep documentation of qualifying expenses or activities.
Calculate Your Full Tax Picture
Use our free tax calculators to estimate your total tax liability and savings.
Browse Credits by Category
Frequently Asked Questions
What is the Small Business Health Care Credit?
Credit for small businesses that provide health insurance coverage to their employees through the SHOP marketplace.
How much is the Small Business Health Care Credit worth?
The average savings from the Small Business Health Care Credit is approximately $8,000 per year, depending on your specific situation.
Who is eligible for the Small Business Health Care Credit?
Small employers providing health insurance to employees. Key requirements include: Fewer than 25 full-time equivalent employees; Average wages below $58,000; Must pay at least 50% of employee premiums; Must purchase through SHOP marketplace.
What forms do I need to claim the Small Business Health Care Credit?
You will need to file Form 8941, Form 3800 with your tax return to claim this credit.
Is the Small Business Health Care Credit refundable?
Check the IRS form instructions for this specific credit. Most non-family, non-education tax credits are nonrefundable but may be carried forward.
Can I claim the Small Business Health Care Credit with other tax credits?
Yes, in most cases you can claim the Small Business Health Care Credit along with other eligible tax credits. However, some credits have interactions that may reduce the benefit. Consult a tax professional for your specific situation.
Related Calculators
Work Opportunity Tax Credit (WOTC)
Up to $9,600
Disabled Access Credit
Up to $5,000
Employer-Provided Childcare Credit
Up to $150,000
Small Employer Pension Plan Startup Costs Credit
Up to $5,000
Tax Refund Estimator
See if you'll get a refund
Income Tax Calculator
Full federal tax estimate
Tax Bracket Calculator
Find your marginal bracket