How much is your Small Business Health Care Tax Credit worth?

By now, some of the dust has settled on the implementation of the Affordable Care Act (ACA). Yet many small businesses are still in the dark about ACA tax credits.

When you buy coverage for your employees through the Small Business Health Options Program (SHOP) Marketplace, you could qualify for a tax credit worth up to 50 percent of your premium contributions — and a new SHOP tax credit estimator┬ácan tell you what that credit might be worth.

Here are four key things to know about the tax credit:

  • Employers with fewer than 25 full-time equivalent employees may be eligible for the credit, worth up to 50 percent of your premiums contributions, if employees make an average of $50,000 a year or less.
  • The credit will be available for two consecutive taxable years.
  • The credit may be available to eligible tax-exempt employers, who can qualify for up to 35 percent of contributions, and receive the credit as a refund.

You’ll need these items before you use the estimator:

  • A list of all full-time and part-time employees.
  • The hours worked per week by part-time employees. You’ll have the option to enter the hours worked by each part-time employee onto a worksheet that will calculate the total hours for all part-time employees.
  • All applicable wage and tax forms.
  • Insurance premiums you paid last year.

Keep in mind that the results you get are only estimates.

Missouri has no SHOP exchange; you’ll need to go through an agent, broker or insurance company. See more details.



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