April 18, 2011
A Tax Credit for Churches?
Potentially thousands of dollars available from health care provision.
Editor's Note (September 29, 2011): A church business administrator in Colorado shared the following update regarding his church's application for this credit: "We submitted form 990-T claiming the credit (approximately $7,100) in late April. We received a request for more information from the IRS late August. Yesterday, the IRS told me that they are still working through a massive amount of applications, and it could take up to 60 days from now to receive our refund, if we are deemed qualified. They said they have 5 agents working on the applications, which is taking them longer than expected. So for those of you still waiting like us, it may be awhile before you see your check. The IRS contact said you are welcome to call 877.301.5153, select option #2, to check on your status (the IRS contact was courteous and professional)."
Editor's Note (August 12, 2011): The 11th Circuit ruled today that a key part of Obama's healthcare reform is unconstitutional. Watch for future updates here, on ChurchLawandTax.com, and in Church Law & Tax Report to learn what this means for churches.
Is there really a "tax credit" available to churches based on last year's health care reform? For those offering health care to employees, the answer is quite possibly yes. The deadline for the first opportunity to take advantage is approaching fast, though.
Some churches say they have received more than $10,000 from the provision, so it's worth investigating what it involves. Richard Hammar provides further information in this short video update below.