September 19, 2010 | Read Time: 1 minute
The Internal Revenue Service has released a draft version of the form that charities and other tax-exempt organizations will use to calculate a new tax benefit they will get under the federal health-care-overhaul law.
The new law offers a tax credit designed to encourage small employers to offer health-insurance coverage or maintain the coverage they now offer their workers.
The credit, which went into effect this year, was included in the federal health-care law enacted in March. The provision applies to employers with no more than 25 full-time employees and average wages below $50,000.
The IRS said that nonprofits eligible for the credit should claim it on a revised version of the Form 990-T, the IRS document that groups use to report business income not related to their missions. A revised Form 990-T, which has not yet been released, will enable nonprofits to claim the tax credit even if they would not usually use the form, the IRS said.
Nonprofits may not claim more than they withheld in income and Medicare tax for their employees and the share of Medicare tax they paid on employee wages.
More details are available at http://www.irs.gov/newsroom/article/0,,id=227404,00.html.
