Tax Credit for Health Care Expenses Can Help a Church Save

Are medical premiums hurting your church budget? Your church may be eligible for a significant tax credit on health insurance premiums it paid for full-time or part-time employees in 2011.

In conjunction with health care legislation known as the Patient Protection and Affordable Care Act, the Internal Revenue Service now offers up to a 25 percent credit for small tax-exempt employers who paid at least half of their employees’ insurance premiums in 2011. Even if taxes have already been filed for fiscal year 2011, a church may file an amended return to receive this credit.

“It took a little bit of work to figure it out, but to get a reinvestment in our ministry was well worth it,” said Russ Matteson, pastor of Modesto (Calif.) Church of the Brethren. He and his church’s stewardship chairwoman pursued the credit last year after reading an announcement from Brethren Benefit Trust (BBT) that was published in Newsline.

That “little bit of work” paid off for the church–Modesto received a refund of around $2,700, according to Matteson.

Does this sound like something your church or organization should pursue? Learn more about how you can claim this credit by reading a letter and summary of information provided by BBT and the IRS at .

— Brian Solem is publications coordinator for Brethren Benefit Trust.

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