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Sequestration Will Reduce Small Business Health Care Tax Credit

03/26/13

  09:24:46 am, by MedBen5   , 151 words,  
Categories: Announcements, News, Health Plan Management

Sequestration Will Reduce Small Business Health Care Tax Credit

Barring congressional action, the recent budget sequestration will require reductions in the Small Business Health Care Tax Credit for some small tax-exempt employers, the Internal Revenue Service has announced.

Accounting Today reports that the credit, which was included as part of the Patient Protection and Affordable Care Act of 2010, will be reduced by 8.7%. The sequestration reduction rate will be applied until the end of the fiscal year (Sept. 30, 2013) unless there is some intervening congressional action, at which time the sequestration rate is subject to change.

The IRS also noted that while the health care reform law generally has no new impacts to the Form 1040 series for the 2012 returns that individuals may be currently filing, those who did receive a health insurance premium rebate during 2012 should check irs.gov/aca under Medical Loss Ratio to see if they are one of the few people who needs to include it on their 2012 return.

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