Shucks!

In new guidance, the IRS says that the sole proprietor who hires his or her spouse may not claim the 35 percent tax credit on health insurance premiums paid on behalf of the spouse or the spouse’s family.1

Example. Phil Faulk hires Bonnie Clayburn, a nonrelative, as his first and only employee. He

pays her a salary of $25,000, and

covers her with health insurance, for which he pays $7,700 annually in premiums.

Mr. Faulk qualifies for a $2,695 tax credit on the ... Log in to view full article.