Businesses providing health insurance coverage to employees may qualify for a valuable tax credit. Calculation of the credit amount is a complex matter that is best handled by someone with registered tax return preparer training.Specific forms are utilized to report the credit. Claiming the credit in the correct place on a tax return is especially complicated for owners of proprietorships and S corporations. They usually need tax preparation help on this matter because the credit is related to business expense for payroll but isn’t reported with business expenses.Knowing about this tax credit is essential for every tax preparer. Failure to utilize the credit misses a significant financial advantage. Therefore, tax preparers should learn from online CPE courses the specific steps in claiming the small employer health care credit.Eligible small businesses for the tax credit must pay at least half of the premiums for employee health insurance coverage in a plan established under the business. The credit is calculated to benefit businesses with 25 or fewer employees earning average compensation of $50,000 or less.The tax preparation training for claiming the small employer health care credit covers Form 8941 to calculate the credit and Form 3800 to report the credit amount as a general business credit. A regular C corporation claims the credit on its tax return. However, the credit is a pass-through for partnerships and S corporations.Partners and S corporation shareholders claim the small employer health care credit as a general business credit on line 53 of their Form 1040 personal tax returns. The tax return preparer job entails providing Form 3800. However, Form 8941 is filed with the business return.Consequently, a vital step in registered tax return preparer work for individuals is looking for an allocation of the tax credit on Schedule K-1 of a partner or S corporation shareholder. Obviously, owners of proprietorships need their tax preparers to create Form 8941 and Form 3800 for filing with personal tax returns.An amended tax return can claim the credit if a taxpayer has already filed a tax return and later discovers eligibility for the credit. The small employer health care credit is available for six tax years beginning with 2010.The maximum credit for tax years 2010 through 2013 is 35 percent of premiums paid by a business that qualifies for the credit. This increases to 50 percent of premiums beginning in 2014.IRS Circular 230 DisclosurePursuant to the requirements of the Internal Revenue Service Circular 230, we inform you that, to the extent any advice relating to a Federal tax issue is contained in this communication, including in any attachments, it was not written or intended to be used, and cannot be used, for the purpose of (a) avoiding any tax related penalties that may be imposed on you or any other person under the Internal Revenue Code, or (b) promoting, marketing or recommending to another person any transaction or matter addressed in this communication.