It is such a nice feeling to have your own home, your own dream home. One has to put lot of efforts and energy to make their dreams come true. In past few year when the economy was not doing well it had become more difficult to maintain steady source of income and it seemed the dream of owning a home would be still at some distance. This period witnessed another phenomenon which saw property prices came crashing down. In budget terms the home of your dreams would be closer but big question was will you be able to retain your earning levels.
Government came to rescue for many such people those who could buy homes at reduced prices but were not sure of their future income levels. Also developers who were building these homes were stuck with huge investments in their projects and construction activity throughout the country was bought to a standstill. IRS launched a scheme in 2008 according to which Americans those who were buying their homes for the first time could avail special income tax credits.
For those who availed the benefits from this scheme must start repaying these credits from 2010 onwards. That means returns to be submitted in 2011 should included repayment of such credits. These credits are to be repaid within a time period of 15 years commencing from year 2010. IRS has already sent reminders to taxpayers those who have availed this scheme. Repayment has to be reported by using Form 5405.
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Smaller business units often operate at lower margins of profits and also have low overhead cost. As a result of this they offer lesser benefits for their employees. Typically such establishments employ low wage earning individuals which are not technically skilled representing weaker section of the society. But still the business units are labour incentive and have capacity of generating employment. Internal Revenue Service Department also offers certain benefits for such organizations with respect to money spent by them towards providing health care facilities for their employees.
These units often pay 50% or less of health insurance premiums for their employees. As per the latest provisions of IRS such small organizations can claim Healthcare Tax credits for upto 35% of the insurance premium paid for their employees in the year 2010. Bigger organization can available maximum of 25% of insurance premium paid for their employees as Healthcare Tax credit. The benefits can be availed till the year 2013. From year 2014 onwards there limits will be raised to 50% for smaller organizations and 35% for larger business establishments.
What decides the size of these organizations? IRS has fixed the number of Full Time Employees (FTE) as criteria to establish the size of an organization for claiming Healthcare Tax credits. If the full time employs are less than 10 maximum benefits can be availed under this scheme. Maximum number of FTE limit of 25 has been set to decide if an organization can claim any benefits at all or not.
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