Can a tax-exempt employer claim the credit if it has no taxable income for the year?
Yes. For a tax-exempt employer, the credit is a refundable credit, so that even if the employer has no taxable income, the employer may receive a refund (so long as it does not exceed the income tax withholding and Medicare tax liability, as discussed in question 6). 19. Can the credit be reflected in determining estimated tax payments for a year? Yes. The credit can be reflected in determining estimated tax payments for the year to which the credit applies in accordance with regular estimated tax rules. 20. Does taking the credit affect an employer’s deduction for health insurance premiums? Yes. In determining the employer’s deduction for health insurance premiums, the amount of premiums that can be deducted is reduced by the amount of the credit. 21. May an employer reduce employment tax payments (i.e., withheld income tax, social security tax, and Medicare tax) during the year in anticipation of the credit? No. The credit applies against income tax, not employment taxes.
Related Questions
- HOW DO I CALCULATE THE AMOUNT OF INPUT TAX WHICH I CAN CLAIM AS A CREDIT IF I AM A MANUFACTURER AND MAKE SALE OF TAXABLE GOODS AND SALE OF EXEMPT GOODS BY USING COMMON INPUTS?
- Can an employer (other than a tax-exempt employer) claim the credit if it has no taxable income for the year?
- Can a tax-exempt employer claim the tax credit if it has no taxable income for the year?
