Federal Credit for Small Employer Health Insurance Premiums

Credit for Small Employer Health Insurance Premiums
2023 Form 8941
Form

8941

Department of the Treasury
Internal Revenue Service

Credit for Small Employer Health Insurance Premiums
Attach to your tax return.
Go to www.irs.gov/Form8941 for instructions and the latest information.

Name(s) shown on return

OMB No. 1545-2198

2023

Attachment
Sequence No. 65
Identifying number

A

Did you pay premiums during your tax year for employee health insurance coverage you provided through a Small Business
Health Options Program (SHOP) Marketplace (or do you qualify for an exception to this requirement)? See instructions.
Yes. Enter Marketplace Identifier (if any):
No. Stop. Do not file Form 8941. See instructions for an exception that may apply to a partnership, S corporation, cooperative,
estate, trust, or tax-exempt entity.

B

Enter the employer identification number (EIN) used to report employment taxes for individuals included on line 1 below if
different from the identifying number listed above:

C

Does a tax return you (or any predecessor) filed for a tax year beginning after 2013 and before 2022 include a Form 8941 with
line A checked “Yes” and line 12 showing a positive amount? See instructions.
Yes. Stop. Do not file Form 8941. See instructions for an exception that may apply to a partnership, S corporation, cooperative,
estate, trust, or tax-exempt entity. Also see instructions for information about the credit period limitation.
No. Go to line 1.
Caution: See the instructions and complete Worksheets 1 through 7 as needed.
Enter the number of individuals you employed during the tax year who are considered employees
1
1
for purposes of this credit (total from Worksheet 1, column (a)) . . . . . . . . . . .
2
Enter the number of full-time equivalent employees (FTEs) you had for the tax year (from
Worksheet 2, line 3). If you entered 25 or more, skip lines 3 through 11 and enter -0- on line 12
2
3
Average annual wages you paid for the tax year (from Worksheet 3, line 3). This amount must be a
multiple of $1,000. If you entered $62,000 or more, skip lines 4 through 11 and enter -0- on line 12
3
4
Premiums you paid during the tax year for employees included on line 1 for health insurance
coverage under a qualifying arrangement (total from Worksheet 4, column (b)) . . . . . .
4
5
Premiums you would have entered on line 4 if the total premium for each employee equaled the
average premium for the small group market in which the employee enrolls in health insurance
coverage (total from Worksheet 4, column (c)) . . . . . . . . . . . . . . . . .
5
6
Enter the smaller of line 4 or line 5 . . . . . . . . . . . . . . . . . . . .
6
7
Multiply line 6 by the applicable percentage:
• Tax-exempt small employers, multiply line 6 by 35% (0.35)
7
• All other small employers, multiply line 6 by 50% (0.50) . . . . . . . . . . . . .
8
If line 2 is 10 or less, enter the amount from line 7. Otherwise, enter the amount from Worksheet
5, line 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8
9
If line 3 is $30,000 or less, enter the amount from line 8. Otherwise, enter the amount from
Worksheet 6, line 7
. . . . . . . . . . . . . . . . . . . . . . . . .
9
10
Enter the total amount of any state premium subsidies paid and any state tax credits available to
you for premiums included on line 4. See instructions . . . . . . . . . . . . . .
10
11
Subtract line 10 from line 4. If zero or less, enter -0- . . . . . . . . . . . . . . .
11
12
Enter the smaller of line 9 or line 11 . . . . . . . . . . . . . . . . . . . .
12
13
If line 12 is zero, skip lines 13 and 14 and go to line 15. Otherwise, enter the number of employees
included on line 1 for whom you paid premiums during the tax year for health insurance coverage
under a qualifying arrangement (total from Worksheet 4, column (a)) . . . . . . . . . .
13
14
Enter the number of FTEs you would have entered on line 2 if you only included employees
included on line 13 (from Worksheet 7, line 3) . . . . . . . . . . . . . . . . .
14
15
Credit for small employer health insurance premiums from partnerships, S corporations,
cooperatives, estates, and trusts (see instructions) . . . . . . . . . . . . . . .
15
16
Add lines 12 and 15. Cooperatives, estates, and trusts, go to line 17. Tax-exempt small employers,
skip lines 17 and 18 and go to line 19. Partnerships and S corporations, stop here and report this
amount on Schedule K. All others, stop here and report this amount on Form 3800, Part III, line 4h
16
17
Amount allocated to patrons of the cooperative or beneficiaries of the estate or trust (see instructions) 17
18
Cooperatives, estates, and trusts, subtract line 17 from line 16. Stop here and report this amount
on Form 3800, Part III, line 4h . . . . . . . . . . . . . . . . . . . . . .
18
19
Enter the amount you paid in 2023 for taxes considered payroll taxes for purposes of this credit.
See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . .
19
20
Tax-exempt small employers, enter the smaller of line 16 or line 19 here and on Form 990-T,
Part III, line 6f . . . . . . . . . . . . . . . . . . . . . . . . . . .
20
For Paperwork Reduction Act Notice, see separate instructions.

Cat. No. 37757S

Form 8941 (2023)