Small business owners: Did you get a postcard from the IRS that you probably threw out?

You know that you may be eligible to claim a new credit on your 2010 tax return?

Beginning the week of April 19th, small businesses should receive a postcard from the IRS. If you don’t get a postcard, check go to IRS.gov . This tax credit is designed to help small business owners like you be able to afford health care coverage for your valuable workers. If you pay employee health insurance premiums in 2010, you may be able to claim this new credit.

In order to be eligible, you must provide health care coverage to your workers, have less than twenty five full-time workers, and pay wages less than $50,000 annually. (Taxable and tax-exempt firms both qualify.) The amount of credit could be worth up to 35% of premiums paid in 2010.

Here’s how to figure out if your company is eligible to take advantage of the Patient Protection and Affordable Care Act (where does the government come up with these names?)

1. Determine the total number of workers. (Don’t include owners or family members)

Full-time workers + Full-time equivalent of part-time workers = Total Workers

(work at least 40 hrs/week) (divide total annual hrs of part-time workers by 2080)

If the total number of workers is fewer than 25, keep going!

2. Calculate the average annual wages of employees.

Total annual wages paid ÷ Number of workers (from step 1 above) = Average Wages

If the result is less than $50,000

3.) Do you pay at least 50% of health care premiums?

Then you may be eligible!