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Determining How Much You Can Get Back From SHOP Credit

Determining how much you can get back from your premium contributions 

When you buy health coverage for your employees through the Small Business Health Options Program (SHOP) Marketplace, you may qualify for a tax credit worth up to 50 percent of your premium contributions.

The SHOP Tax Credit Estimator can tell you what that credit might be worth to your business.

Here are some key things you should know about the tax credit and applying for SHOP:

  • Employers with fewer than 25 full-time equivalent employees may be eligible for the Small Business Health Care Tax Credit, worth up to 50 percent of employer premiums contributions, if their employees make an average of $50,000 a year or less.
  • The tax credit will be available to eligible employers for two consecutive taxable years.
  • The tax credit may be available to eligible tax-exempt employers who could receive up to 35% of employer premium contributions, and can access the credit as a refund.
  • Generally, the Small Business Health Care Tax Credit is available for eligible employers purchasing SHOP health plans.
  • To enroll in a SHOP plan in most states, you’ll use an agent, broker, or insurance company. You’ll also need to complete a SHOP eligibility application.
  • Visit IRS.gov for the most up to date information and guidance on claiming this tax credit.
  • Even if you’re a small employer who does not qualify for a small business tax credit, you may still purchase coverage through SHOP.

Apply for SHOP coverage any time, all year

SHOP is open to employers with 50 or fewer full-time-equivalent employees (FTEs) and enrollment is open year- round.

A new SHOP Full-Time Equivalent Calculator can help you find out if your business meets the definition of a small business for SHOP based on the number of employees.

Choose your state and we’ll help you get started. If you have questions about the SHOP Marketplace call 1-800-706-7893 (TTY: 1-800-706-7915), Monday through Friday, 9 a.m. to 7 p.m. ET. Agents and brokers may also use this number.

This article was originally published on Healthcare.gov. 

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Meadowlands USA

Meadowlands USA

Meadowlands USA is a North Jersey regional publication that reaches people who live and work in and around the Meadowlands (including the Bergen, Hudson, Essex and Passaic County corridor), as well as visitors to our region. The blog edition is updated regularly and the print edition is released six times a year.

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