State and federally chartered credit unions may be eligible for a small business health care tax credit as part of the Affordable Health Care Act. The tax credit is available to smaller credit unions that pay at least half of the premiums for single health insurance coverage for their employees. The credit union must have no more than 25 full-time equivalent employees who earn, on average, less than $50,000 per year. The credit can be as high as 25% of premiums paid by the credit union.
The credit is claimed on the revised form 990-T. The due date for filing the 2011 form 990-T is May 15, 2012. The credit can be claimed even if the credit union has no unrelated business income.
If your credit union would like the Audit Department of the North Carolina Credit Union League to assist with this filing, please contact LaDawn Atkinson at email@example.com or 336-314-0812.