Small Business Medical Insurance Tax Credit – Is it Really Worth it for a Dentist?

You get up to 35% credit on what you pay towards medical. The only crappy thing is that your staff has to average under $50K income… But I think this could work in some parts of the country. Disappointed that it doesn’t take into consideration that some areas have a higher income level and associated higher costs. Out of 15, I only have a third making less than 50,000.

We’ve had very few clients get the credit….as we suspected. For those that have, it’s been at most $1,000, usually less.

The “average wage” calculation usually kills the chances. It’s generally based on full time equivalent. what that means is you could have several part-time people making $20k each & one or two full time making near or way over $50k (hygiene for example). The problem is, a 20 hour per week person making $20k is equivalent to a full time person making $40k and when you factor in the full time people making $50k or $80k (full time hygiene) your “average wage” exceeds $50k.

It’s not good for us either because it adds extra work to every business tax return we do…..

This first appeared on DentalTown.

Send your questions to Tim Lott, CPA, CVA at

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