MECHANICSBURG, Pa., Jan. 20, 2011 /PRNewswire/ — The Small Business Tax Credit Calculator™, developed and launched by Tax Credits, LLC™ and available for use by tax professionals and self-filers at http://www.smallbusinesstaxcreditcalculator.com, is the only online calculator tool valid in all 50 states to complete lines 1-14 of IRS Form 8941 for the tax preparer. This 100% guaranteed numerical calculation turns what the IRS projects to be a 12-16 hour task into minutes, saving time and frustration for tax preparers and small business owners everywhere.
The calculator, not an estimator as are most on the web today, computes specific, complete, and actual numerical data needed for qualifying small businesses to use in filing tax returns to take advantage of the Small Business Tax Credit (SBTC) created by the Health Care Reform legislation’s Patient Protection and Affordable Care Act.
“Contrary to many rumors circulating amongst accountants and tax preparers, most small businesses do in fact qualify for substantial tax credits,” affirms Tim Morrison, President of Tax Credits, LLC™ and Developer of the Small Business Tax Credit Calculator™.
“The calculations are so complex that people without in-depth knowledge of health insurance and health benefits don’t understand how they qualify based on the initial explanations of the credit by the IRS. Our calculator provides the variables to maximize this credit and does the work for them which will enable many more businesses to enjoy the credit they have worked hard for and are entitled to,” Morrison states. “In addition, the recent IRS notices clarify that small businesses are in fact able to take their qualifying small business tax credit amount and still be able to tax deduct the remaining balance of employer medical premiums paid as they have in previous years.”
The 100% guaranteed calculations are computed through detailed algorithms based on multiple variables per employee, comparison of hours, days or weeks worked to calculate optimal FTE count and average wages to receive the maximum tax credit. As per the most recent clarifications provided by the IRS in notice 2010-82, the tool currently provides the calculations for employees in multiple states in addition to employers receiving state premium credits or subsidies.
“Our research indicates that most tax professionals are still under the total misconception that their accounting software does this calculation for them,” adds Morrison. “While currently released accounting software does contain the Form 8941 and data entry sheets, absolutely nothing is provided in the accounting software to actually calculate the data that must be entered (FTE counts using hours/days/weeks, individual comparison of state average premium percentage, multi-state employees, etc.) to produce a clients maximum tax credit. We’ve seen the tax credit go from zero to over $5,000 and in other cases simply double just by using the week’s variable versus hours in the calculation.”
The calculator can be used by individual small business owners or multi-client professionals as it offers a defaulted excel template for Multi-Licensees for ease in communications and data completion for tax professionals with small business clients eligible for the Small Business Health Care Tax Credit.
Tax Credits, LLC™, based in Mechanicsburg, PA, represents, manages and markets the Small Business Tax Credit Calculator™ created in cooperation with Tekmark Global Solutions, LLC. Timothy J. Morrison, President of Benefit Design Specialties, Inc. and Founder of Tax Credits, LLC, spearheaded development of the Small Business Tax Credit Calculator™ to engage and share his expertise in the health care arena gained over the last 24 years of servicing over 300 small businesses as a health care broker, employee benefit product & plan consultant and in-house benefit administrator.
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