IRS Form 8941 walkthrough (Credit for Small Employer Health Insurance Premiums)

Eligible small employers use Form 8941 to figure the credit for small employer health insurance premiums for tax years beginning after 2009.

For tax years beginning after 2013, the credit is only available for a 2-consecutive-tax-year credit period.

The maximum credit is generally a percentage of premiums the employer paid during the tax year for certain health insurance coverage the employer provided to certain employees enrolled in a qualified health plan offered through a Small Business Health Options Program (SHOP) Marketplace.

But the credit may be reduced by limitations based on the employer’s full-time equivalent employees, average annual wages, adjusted average premiums, and state premium subsidies and tax credits.