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Study Data Documents Specific Calculations Critical in Maximizing Small Business Tax Credit Refunds for Small Businesses

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Correct Calculations Not Estimates Critical to Refunds

MECHANICSBURG, Pa., March 11, 2011 /PRNewswire/ — Small Business Tax Credit filing data compiled from current users of the Small Business Tax Credit Calculator™.com, developed by Tax Credits, LLC, documents that the much publicized online tax credit estimator tools and current accounting software are generating discouraging and incorrect information to accountants and small businesses trying to gauge their qualification and claim their Small Business Tax Credit.

“Accountants and tax preparers must calculate not estimate the projected small business health care tax credit refund before dismissing a filer’s qualification for a substantial refund,” states Tim Morrison health benefits expert and developer of the Small Business Tax Credit Calculator™. “Our case study data clearly documents small business scenarios across the country in which the estimator tools completely negated and/or far underestimated a business’s entitled refund.”

To encourage tax preparer’s to actually calculate their client’s health care tax credit and ensure that as many small businesses as possible benefit from their expertise, Tax Credits, LLC is offering a limited time $100.00 discount from now until March 25, 2011 on the use of their Multi User calculator options located at .

“The IRS Form 8941 calculations are so complex that accountants and preparers without in-depth knowledge of health insurance and health benefits often don’t understand how to qualify the data necessary for entry,” according to Morrison. “Our research indicates that most tax professionals are still under the total misconception that their accounting software does this calculation for them. Sure the small business owner is happy if their accountant calculates a $5,000 tax credit, but what if their credit was, in reality, actually $10,000+?”

Most currently released accounting software does contain the Form 8941 and data entry sheets, however nothing is provided in the software to actually calculate the complex data that must be entered such as FTE counts using hours/days/weeks, individual comparison of state average premium percentage, multi-state employers, state premium subsidies etc. … to produce clients’ maximum tax credit.

“Tax credit estimator tools were put online with good intent,” states Morrison. “However, these estimators as well as the software programs used by many accounting firms do not have the capability to optimize the tax credits,” states Morrison. “We have dozens of examples in which the ‘estimator’ tools and other accounting software tools have asked for FTE’s, hours, wages and premiums and produced zero or a minimal tax credit when indeed the credit was thousands of dollars.”

Actual case study of estimator and accounting software tax credit “calculators” showing $0 tax credit when the correct tax credit was actually $12,087; calculations of $5,360 when the correct credit was $9,896; and credits of $10,842 when the correct credit due the small business was actually $20,041!

“A stellar example of why the calculations must be done came from a client accountant in South Dakota. His client had 72 employees entered in the calculation with only 4 covered for health insurance, producing a $4,909 tax credit for this employer,” Morrison added. “Had the accountant not gone through the calculations in our system he would not have realized a tax credit for his client as on the surface it appears that the maximum employee FTE count to qualify for credit is 25. The fact that our tool uses all permitted IRS variables enabled this company with 72 employees to get almost $5,000 in a tax credit.”

Background: can be used by individual small business owners or multi-client professionals as it offers a defaulted Excel template for Unlimited 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. Nominal charges for use range from $29.95 for a Single User License, $349.95 for Limited Multi Users to $595.95 for Unlimited Multi User Licenses. The Small Business Tax Credit Calculator available to small businesses and tax preparation professionals is a guaranteed calculation available in all 50 states and Tax Credits, LLC is now offering $100 off both Multi User systems until March 25th.

Video tutorials are available on the small business tax credit calculator website for single company users as well as multi-company users, typically accountants and professional tax preparers.

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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