This is an urgent, time-sensitive communication. If you are paying insurance for your pastor(s) and staff, you may be eligible for a tax credit from the Federal Government. Please be sure to read through the note below from the FMCNA and the attached .pdf document that explains this unique opportunity. Please also be sure to follow the link below to view the attached video for further very important, essential information on this opportunity:
http://blog.yourchurch.net/2011/04/a_tax_credit_for_churches_1.html
If you have any questions, please do not hesitate to ask.
Some of you may be wondering about the implications of applying for this tax credit. It involves completing the worksheet 8941 and then completing a section of the 990-T for 2010 and submitting it by the May 15th deadline.
- You've never completed a 990-T for the church before. Is this something I should have been doing all along? No . . . generally churches are exempt from completing Form 990-T unless they are involved in for-profit activities. Form 990-T, in this case, is required to access the potential tax credit.
- Will completing a Form 990-T this time make it a future requirement? Not necessarily. Nothing in the IRS code or the Small Business Health Care Tax Credit code would imply that. This tax credit will be available at a rate of up to 25% of qualified health care premiums for churches of up to 25 full-time equivalent employees through 2013. For 2014 and 2015, the rate will increase to 35%. Beyond that time frame, it is unclear what tax credit, if any, will be available. This form will be required only if you intend to apply the for the tax credit.
- What do we need to do? Complete the worksheet Form 8941, and then, if you are eligible (per the worksheet), complete Form 990-T, line 44F. If you are filing Form 990-T only to request the credit (most likely case), you must write across the top of the Form 990-T "Request for 45R credit only". Form 990-T must be filed by May 15, 2011. The worksheet 8941 is not required to be filed.
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