Form 8941 is used by eligible small employers to calculate the Small Employer Health Insurance Premium Credit. This credit may help offset the cost of providing health insurance coverage to employees through a qualified health plan offered through the Small Business Health Options Program (SHOP) Marketplace. The credit is generally based on a percentage of the premiums you paid for eligible employee coverage.
Who Qualifies as an Eligible Small Employer?
You may qualify for this credit if you meet all of the following requirements:
- You paid health insurance premiums for employees under a qualifying arrangement.
- You had fewer than 25 full-time equivalent employees (FTEs) during the tax year.
- You paid average annual wages of less than $67,000 per FTE.
Keep in mind that additional rules may apply, including SHOP Marketplace participation requirements and limitations that can reduce the amount of the credit.
How to Claim the Credit in the program
To enter the Credit for Small Employer Health Insurance Premiums in the software:
- Go to Federal.
- Select Deductions (Select My Forms).
- Choose Credits.
- Select Small Employer Health Insurance Premiums.
The software will guide you through the information needed to complete Form 8941 and calculate any credit you qualify to receive.