Instructions for IRS Form 8941 "Credit for Small Employer Health Insurance Premiums"

This document contains official instructions for IRS Form 8941, Credit for Small Employer Health Insurance Premiums - a tax form released and collected by the Internal Revenue Service (IRS), a subdivision of the U.S. Department of the Treasury. An up-to-date fillable IRS Form 8941 is available for download through this link.

Instruction Details:

  • This 30-page document is available for download in PDF;
  • Actual and applicable for filing 2020 taxes;
  • Complete, printable, and free.

Download your copy of the instructions by clicking the link below or browse hundreds of other forms in our library of IRS-released tax documents.

ADVERTISEMENT
ADVERTISEMENT

Download Instructions for IRS Form 8941 "Credit for Small Employer Health Insurance Premiums"

Download PDF

Fill PDF online

Rate (4.6 / 5) 118 votes
2020
Department of the Treasury
Internal Revenue Service
Instructions for Form 8941
Credit for Small Employer Health Insurance Premiums
Section references are to the Internal Revenue Code
tax under section 1381 may be able to claim the credit as
unless otherwise noted.
a general business credit, as discussed next.
Future Developments
For all other eligible small employers, the maximum
credit is 50% of premiums paid and can be taken against
For the latest information about developments related to
both regular and alternative minimum tax. The credit is
Form 8941 and its instructions, such as legislation
claimed as part of the general business credit on Form
enacted after they were published, go to
IRS.gov/
3800.
Form8941.
Partnerships, S corporations, cooperatives,
Reminders
estates, trusts, and tax-exempt eligible small
TIP
employers must file this form to claim the credit.
Exception for eligible small employers in certain
All other taxpayers must not complete or file this form if
counties. Certain small employers whose principal
their only source for this credit is a partnership, S
business address is in a county with no qualified health
corporation, cooperative, estate, or trust. Instead, they
plan through a Small Business Health Options Program
must report this credit directly on line 4h in Part III of Form
(SHOP) Marketplace may be able to claim the credit for
3800, General Business Credit.
small employer health insurance premiums. For more
information, see
Exception for eligible small employers in
Eligible Small Employers
certain counties
in the instructions for line A.
You’re an eligible small employer for the tax year if you
Waiver for Hawaii. Employers in Hawaii can’t claim this
meet the following three requirements.
credit for insurance premiums paid for health plan years
beginning after 2016. For more information, see
Waiver
1. You paid premiums for employee health insurance
for Hawaii
in the instructions for line A.
coverage under a qualifying arrangement. A
qualifying arrangement is generally an arrangement that
General Instructions
requires you to pay a uniform percentage (not less than
50%) of the premium cost for each enrolled employee’s
Purpose of Form
health insurance coverage (defined later). However, an
arrangement that requires you to pay a uniform premium
Eligible small employers (defined below) use Form 8941
for each enrolled employee (composite billing) and offers
to figure the credit for small employer health insurance
different tiers of coverage (for example, employee-only,
premiums for tax years beginning after 2009. For tax
dependent, and family coverage) can be a qualifying
years beginning after 2013, the credit is only available for
arrangement even if it requires you to pay a uniform
a 2-consecutive-tax-year credit period. The maximum
percentage that is less than 50% of the premium cost for
credit is generally a percentage of premiums the employer
employees not enrolled in employee-only coverage.
paid during the tax year for certain health insurance
In addition, an arrangement that requires you to pay a
coverage the employer provided to certain employees
separate premium for each employee based on age or
enrolled in a qualified health plan offered through a Small
other factors (list billing) can be a qualifying arrangement
Business Health Options Program (SHOP) Marketplace.
even if it requires you to pay a uniform percentage that is
But the credit may be reduced by limitations based on the
less than 50% of the premium cost for some employees.
employer’s full-time equivalent employees, average
annual wages, adjusted average premiums, and state
For details, see Employer Premiums Paid, Health
premium subsidies and tax credits.
Insurance Coverage, and Qualifying Arrangement, later.
For information about insurance plans offered
2. You had fewer than 25 full-time equivalent employ-
through a SHOP Marketplace, visit
ees (FTEs) for the tax year. You may be able to meet
TIP
Healthcare.gov.
this requirement even if you had 25 or more employees.
For example, an employer with 48 employees that are
For tax-exempt eligible small employers, the
each half-time employees has 24 FTEs and can claim the
maximum credit is 35% of premiums paid, is limited to the
credit. For details, see Worksheets 1 and 2.
amount of certain payroll taxes paid, and is claimed as a
Although the term “eligible small employer” is
refundable credit on Form 990-T, Exempt Organization
defined in the Internal Revenue Code to include
!
Business Income Tax Return. A tax-exempt eligible small
employers with “no more than” 25 FTEs, the
employer is an eligible small employer described in
CAUTION
phaseout of the credit amount operates in such a way that
section 501(c) that is exempt from taxation under section
an employer with exactly 25 FTEs is not, in fact, eligible
501(a). A tax-exempt employer not described in section
for the credit.
501(c) is generally not eligible to claim this credit.
However, a tax-exempt farmers’ cooperative subject to
Nov 16, 2020
Cat. No. 55222U
2020
Department of the Treasury
Internal Revenue Service
Instructions for Form 8941
Credit for Small Employer Health Insurance Premiums
Section references are to the Internal Revenue Code
tax under section 1381 may be able to claim the credit as
unless otherwise noted.
a general business credit, as discussed next.
Future Developments
For all other eligible small employers, the maximum
credit is 50% of premiums paid and can be taken against
For the latest information about developments related to
both regular and alternative minimum tax. The credit is
Form 8941 and its instructions, such as legislation
claimed as part of the general business credit on Form
enacted after they were published, go to
IRS.gov/
3800.
Form8941.
Partnerships, S corporations, cooperatives,
Reminders
estates, trusts, and tax-exempt eligible small
TIP
employers must file this form to claim the credit.
Exception for eligible small employers in certain
All other taxpayers must not complete or file this form if
counties. Certain small employers whose principal
their only source for this credit is a partnership, S
business address is in a county with no qualified health
corporation, cooperative, estate, or trust. Instead, they
plan through a Small Business Health Options Program
must report this credit directly on line 4h in Part III of Form
(SHOP) Marketplace may be able to claim the credit for
3800, General Business Credit.
small employer health insurance premiums. For more
information, see
Exception for eligible small employers in
Eligible Small Employers
certain counties
in the instructions for line A.
You’re an eligible small employer for the tax year if you
Waiver for Hawaii. Employers in Hawaii can’t claim this
meet the following three requirements.
credit for insurance premiums paid for health plan years
beginning after 2016. For more information, see
Waiver
1. You paid premiums for employee health insurance
for Hawaii
in the instructions for line A.
coverage under a qualifying arrangement. A
qualifying arrangement is generally an arrangement that
General Instructions
requires you to pay a uniform percentage (not less than
50%) of the premium cost for each enrolled employee’s
Purpose of Form
health insurance coverage (defined later). However, an
arrangement that requires you to pay a uniform premium
Eligible small employers (defined below) use Form 8941
for each enrolled employee (composite billing) and offers
to figure the credit for small employer health insurance
different tiers of coverage (for example, employee-only,
premiums for tax years beginning after 2009. For tax
dependent, and family coverage) can be a qualifying
years beginning after 2013, the credit is only available for
arrangement even if it requires you to pay a uniform
a 2-consecutive-tax-year credit period. The maximum
percentage that is less than 50% of the premium cost for
credit is generally a percentage of premiums the employer
employees not enrolled in employee-only coverage.
paid during the tax year for certain health insurance
In addition, an arrangement that requires you to pay a
coverage the employer provided to certain employees
separate premium for each employee based on age or
enrolled in a qualified health plan offered through a Small
other factors (list billing) can be a qualifying arrangement
Business Health Options Program (SHOP) Marketplace.
even if it requires you to pay a uniform percentage that is
But the credit may be reduced by limitations based on the
less than 50% of the premium cost for some employees.
employer’s full-time equivalent employees, average
annual wages, adjusted average premiums, and state
For details, see Employer Premiums Paid, Health
premium subsidies and tax credits.
Insurance Coverage, and Qualifying Arrangement, later.
For information about insurance plans offered
2. You had fewer than 25 full-time equivalent employ-
through a SHOP Marketplace, visit
ees (FTEs) for the tax year. You may be able to meet
TIP
Healthcare.gov.
this requirement even if you had 25 or more employees.
For example, an employer with 48 employees that are
For tax-exempt eligible small employers, the
each half-time employees has 24 FTEs and can claim the
maximum credit is 35% of premiums paid, is limited to the
credit. For details, see Worksheets 1 and 2.
amount of certain payroll taxes paid, and is claimed as a
Although the term “eligible small employer” is
refundable credit on Form 990-T, Exempt Organization
defined in the Internal Revenue Code to include
!
Business Income Tax Return. A tax-exempt eligible small
employers with “no more than” 25 FTEs, the
employer is an eligible small employer described in
CAUTION
phaseout of the credit amount operates in such a way that
section 501(c) that is exempt from taxation under section
an employer with exactly 25 FTEs is not, in fact, eligible
501(a). A tax-exempt employer not described in section
for the credit.
501(c) is generally not eligible to claim this credit.
However, a tax-exempt farmers’ cooperative subject to
Nov 16, 2020
Cat. No. 55222U
Employer Premiums Paid
3. You paid average annual wages for the tax year of
less than $56,000 per FTE. For details, see Worksheets
Only premiums you paid for health insurance coverage
1 and 3.
under a qualifying arrangement (discussed later) for
individuals considered employees are counted when
If you had more than 10 FTEs and average
figuring your credit.
annual wages of more than $27,000, the FTE and
!
average annual wage limitations (discussed later)
State premium subsidy or tax credit. If you’re entitled
CAUTION
will separately reduce your credit. This may reduce your
to a state tax credit or a state premium subsidy paid
credit to zero even if you had fewer than 25 FTEs and
directly to you for premiums you paid, don’t reduce the
average annual wages of less than $56,000.
amount you paid by the credit or subsidy amount. Also, if
a state pays a premium subsidy directly to your insurance
Employers treated as a single employer. Treat the
provider, treat the subsidy amount as an amount you paid
following employers as a single employer to figure the
for employee health insurance coverage.
credit.
Wellness programs. A wellness program is generally an
Employers who are corporations in a controlled group
insurance program of health promotion or disease
of corporations.
prevention. If you pay part or all of the cost of an
Employers who are members of an affiliated service
employee’s participation in a wellness program, treat the
group.
amount you paid toward the employee’s participation as
Employers who are partnerships, proprietorships, etc.,
an amount you paid for employee health insurance
under common control. See Regulations sections
coverage.
1.414(c)-2, 1.414(c)-3, and 1.414(c)-4.
Tax-exempt employers under common control. See
Tobacco surcharges. A tobacco surcharge is generally
Regulations section 1.414(c)-5.
an additional amount charged for insurance for a tobacco
For details, see section 45R(e)(5)(A) and Regulations
user. If you pay part or all of an employee’s tobacco
section 1.45R-2(b).
surcharge, you can’t use the amount you paid to figure
your employer premiums paid.
No more than one Form 8941 can be filed with a
tax return, unless the exception described in
Dependent coverage. Dependent coverage is generally
TIP
Example 2 below applies.
coverage offered separately to an individual who is or may
become eligible for coverage under the terms of a group
Example 1. You’re a sole proprietor with two separate
health plan because of a relationship to a
businesses and you file a separate Schedule C (Form
participant-employee, whether or not a dependent of the
1040) for each business. You must treat both businesses
participant-employee. Dependent coverage doesn’t
as a single employer to figure the credit. You will file one
include coverage, such as family coverage, which
Form 8941 for both businesses.
includes coverage of the participant-employee. If you pay
part or all of the cost of an employee’s dependent
Example 2. You and your spouse are both sole
coverage, use the amount you paid to figure your
proprietors and file a separate Schedule C (Form 1040)
employer premiums paid.
for each of your separate businesses. Neither spouse was
an employee of the other spouse or participated in the
Portion of premiums paid. If you pay only a portion of
management of the other spouse’s business at any time
the premiums and your employees pay the rest, only the
during the tax year. No more than 50% of the gross
portion you pay is taken into account. For this purpose,
income of either business was derived from royalties,
any premium paid through a salary reduction arrangement
rents, dividends, interest, and annuities and you otherwise
under a section 125 cafeteria plan isn’t treated as an
meet the requirements listed in Regulations section
employer paid premium. For more information on cafeteria
1.414(c)-4(b)(5)(ii). Don’t treat both businesses as a
plans, see section 1 of Pub. 15-B, Employer’s Tax Guide
single employer to figure the credit. If you and your
to Fringe Benefits.
spouse are both eligible small employers, you can file two
Example 3. You offer health insurance coverage to
Forms 8941 with a jointly filed Form 1040 or 1040-SR.
employees under a qualifying arrangement that requires
Credit Period
you to pay 60% of the premium cost for employee-only
coverage for each employee enrolled in any health
For tax years beginning after 2013, the credit period
insurance coverage you provide to employees. The total
during which the credit can be claimed is a
premium for each employee enrolled in employee-only
2-consecutive-tax-year period beginning with the first tax
coverage is $5,200 per year or $100 ($5,200 ÷ 52) for
year in which:
each weekly payday. The total premium for each
An eligible small employer (or any predecessor) files an
employee enrolled in family coverage is $13,000 per year
income tax return with an attached Form 8941 with line A
or $250 ($13,000 ÷ 52) for each weekly payday.
checked “Yes” and a positive amount on line 12, or
A tax-exempt eligible small employer (or any
Each payday you contribute $60 (60% of $100) toward
predecessor) files Form 990-T with an attached Form
the premium cost of each employee enrolled in
8941 with line A checked “Yes” and a positive amount on
employee-only coverage and withhold the remaining $40
line 12.
from the employee's paycheck to obtain the $100 total
weekly premium. Each payday you contribute $60 (the
same amount you pay toward the premiums of employees
enrolled in employee-only coverage) toward the premium
-2-
Instructions for Form 8941 (2020)
cost of each employee enrolled in family coverage and
requirement. This is true whether the difference is due to a
withhold the remaining $190 from the employee’s
discount for participation or a surcharge for
paycheck to obtain the $250 total weekly premium.
nonparticipation. The employer contribution for
employees who don’t participate in the wellness program
To determine the premiums you paid during the tax
must be at least 50% of the premium (including any
year, multiply the number of pay periods during which the
premium surcharge for nonparticipation). However, for
employee was enrolled in the health insurance coverage
purposes of figuring the credit, the employer contributions
by $60. For example, you would’ve paid $3,120 ($60 × 52)
are taken into account, including those contributions
for an employee who was enrolled for the entire tax year.
attributable to an employee’s participation in a wellness
You would’ve paid $600 ($60 × 10) for an employee who
program.
was only enrolled for 10 pay periods. You will need an
additional set of calculations if the premium amounts
Tobacco surcharge. Any additional amount you or your
changed during the tax year.
employee pay to cover a tobacco surcharge isn’t taken
into account in figuring the uniform percentage
Health Insurance Coverage
requirement. Amounts you or your employee pay to cover
For tax years beginning after 2013, health insurance
a tobacco surcharge aren’t considered premiums paid for
coverage generally means coverage provided to
health insurance coverage when figuring this credit.
employees enrolled in a qualified health plan offered
Dependent coverage. Premiums you pay for dependent
through a Small Business Health Options Program
coverage aren’t subject to the uniform percentage
(SHOP) Marketplace. For an exception that applies to
requirement. You aren’t required to pay a uniform
certain employers in certain counties, see the instructions
percentage (not less than 50%) for dependent coverage.
for
line
A, later. If this exception applies, health insurance
coverage means coverage, as defined under Health
Arrangements with composite billing. An
Insurance Coverage in the 2013 Instructions for Form
arrangement that requires you to pay a uniform premium
8941.
for each enrolled employee (composite billing) and offers
different tiers of coverage can be a qualifying arrangement
A stand-alone dental plan offered through a
even if it requires you to pay a uniform percentage that is
SHOP exchange will be considered a qualified
TIP
less than 50% of the premium cost for employees not
health plan for purposes of the credit.
enrolled in employee-only coverage. It is a qualifying
arrangement (assuming employee-only coverage is the
Employer premiums paid for health insurance
least expensive tier of coverage) if it requires you to pay
coverage can be counted in figuring the credit
!
each of the following amounts if you make the relevant tier
only if the premiums are paid under a qualifying
CAUTION
of coverage available.
arrangement.
A uniform percentage (not less than 50%) of the
Qualifying Arrangement
premium cost for each employee (if any) enrolled in
employee-only coverage.
A qualifying arrangement is generally an arrangement that
A uniform amount that is no less than the amount you
requires you to pay a uniform percentage (not less than
would’ve paid toward employee-only coverage for each
50%) of the premium cost for each enrolled employee's
employee (if any) enrolled in family coverage.
health insurance coverage (defined earlier). An
A uniform amount that is no less than the amount you
arrangement that offers different tiers of coverage (for
would’ve paid toward employee-only coverage for each
example, employee-only and family coverage) is generally
employee (if any) enrolled in any other tier of coverage
a qualifying arrangement if it requires you to pay a uniform
(figured separately for each tier).
percentage (not less than 50%) separately for each tier of
Arrangements with list billing and only employee-on-
coverage you offer. However, an arrangement can be a
ly coverage. An arrangement that requires you to pay a
qualifying arrangement even if it requires you to pay a
separate premium for each employee based on age or
uniform percentage that is less than 50% of the premium
other factors (list billing) that only provides employee-only
cost for some employees.
coverage can be a qualifying arrangement even if it
For more information about the following exceptions,
requires you to pay a uniform percentage that is less than
see Regulations section 1.45R-4.
50% of the premium cost for some employees. It is a
qualifying arrangement if it requires you to pay either of
State or local law. You will be treated as satisfying the
the following amounts.
uniform percentage requirement if your failure to
A uniform percentage (not less than 50%) of the
otherwise satisfy the requirement was solely attributable
premium charged for each employee enrolled in the
to additional contributions you made to certain employees
employee-only coverage.
to comply with state or local law.
A uniform percentage (not less than 50%) of your
Wellness program. If a plan of an employer provides a
employer-computed composite rate (defined later) for
wellness program, for purposes of meeting the uniform
your employee-only coverage for each employee enrolled
percentage requirement, the following applies. Any
in the employee-only coverage.
additional amount of the employer contribution attributable
Arrangements with list billing and other tiers of cov-
to an employee’s participation in the wellness program
erage. An arrangement that requires you to pay a
over the employer contribution with respect to an
separate premium for each employee based on age or
employee that doesn’t participate in the wellness program
other factors (list billing) that provides other tiers of
isn’t considered in calculating the uniform percentage
-3-
Instructions for Form 8941 (2020)
coverage can be a qualifying arrangement even if it
employer premiums paid, and although a state premium
requires you to pay a uniform percentage that is less than
subsidy paid directly to an insurance provider is treated as
50% of the premium cost for some employees. It is a
an employer premium you paid, the amount of your credit
qualifying arrangement (assuming employee-only
can’t be more than your net premium payments.
coverage is the least expensive tier of coverage) if it
Net premium payments are employer premiums paid
requires you to pay each of the following amounts if you
(discussed earlier) minus the amount of any state tax
make the relevant tier of coverage available.
credits you received or will receive and any state premium
A uniform percentage (not less than 50%) for each
subsidies paid either to you or directly to your insurance
employee enrolled in employee-only coverage, as
provider for premiums for health insurance coverage you
discussed under Arrangements with list billing and only
provide under a qualifying arrangement to individuals
employee-only coverage above.
considered employees.
A uniform amount that is either equal to the amount you
would’ve paid toward employee-only coverage (as
Payroll Tax Limitation for Tax-Exempt
discussed above), a uniform percentage (not less than
Eligible Small Employers
50%) of the premium charged, or a uniform percentage
(not less than 50%) of your employer-computed
The credit for tax-exempt eligible small employers can’t
composite rate (defined below) for your family coverage,
exceed the amount of certain payroll taxes. For tax years
for each employee (if any) enrolled in family coverage.
beginning in 2020, payroll taxes, for this purpose, mean
A uniform amount that is either equal to the amount you
only the following taxes.
would’ve paid toward employee-only coverage (as
Federal income taxes the tax-exempt employer was
discussed above), a uniform percentage (not less than
required to withhold from employees’ wages in calendar
50%) of the premium charged, or a uniform percentage
year 2020.
(not less than 50%) of your employer-computed
Medicare taxes the tax-exempt employer was required
composite rate (defined below) for any other tier of
to withhold from employees’ wages in calendar year 2020.
coverage, for each employee (if any) enrolled in any other
Medicare taxes the tax-exempt employer was required
tier of coverage (figured separately for each tier).
to pay for calendar year 2020.
Employer-computed composite rate. The
Premium Deduction Reduced
employer-computed composite rate for a tier of coverage
You must reduce your deduction for the cost of providing
is the average rate determined by adding the premiums
health insurance coverage to your employees by the
for that tier of coverage for all employees eligible to
amount of any credit for small employer health insurance
participate in the health insurance plan (whether or not
premiums allowed with respect to the coverage.
they actually receive coverage under the plan or under
that tier of coverage) and dividing by the total number of
More Information
such eligible employees.
For more information about this credit, see the following.
More than one plan. Different types of health insurance
Section 45R.
plans are generally not aggregated for purposes of
Regulations sections 1.45R-0 through 1.45R-5.
meeting the qualifying arrangement requirement. For
IRS.gov/Affordable-Care-Act/Employers/Small-
example, if you offer a major medical insurance plan and a
Business-Health-Care-Tax-Credit-and-the-SHOP-
stand-alone vision plan, you generally must separately
Marketplace.
satisfy the requirements for a qualifying arrangement with
respect to each type of coverage. For exceptions, see
Specific Instructions
Regulations section 1.45R-4(c).
State subsidies and credits. For this purpose, if you’re
Partnerships, S corporations, cooperatives,
entitled to a state tax credit or a state premium subsidy
estates, trusts, and tax-exempt eligible small
TIP
paid directly to you for premiums you paid, don’t reduce
employers must file this form to claim the credit.
the amount you paid by the credit or subsidy amount.
All other taxpayers must not complete or file this form if
Also, if a state pays a premium subsidy directly to your
their only source for this credit is a partnership, S
insurance provider, treat the subsidy amount as an
corporation, cooperative, estate, or trust. Instead, they
amount you paid for employee health insurance coverage.
must report this credit directly on line 4h in Part III of Form
3800.
State Premium Subsidy and Tax
Credit Limitation
Use Worksheets 1 through 7 to figure the amounts to
report on various lines of Form 8941.
Your credit may be reduced if you’re entitled to a state tax
Use Worksheets 1, 2, and 3 to figure the amounts to
credit or a state premium subsidy for the cost of health
report on lines 1, 2, and 3 of Form 8941.
insurance coverage you provide under a qualifying
Use Worksheet 4 to figure the amounts to report on
arrangement to individuals considered employees. The
lines 4, 5, and 13 of Form 8941.
state tax credit may be refundable or nonrefundable and
Use Worksheets 5, 6, and 7 to figure the amounts to
the state premium subsidy may be paid to you or directly
report on lines 8, 9, and 14 of Form 8941.
to your insurance provider.
Line A
Although a state tax credit or premium subsidy paid
directly to you doesn’t reduce the amount of your
Answer “Yes” if one of the following applies.
-4-
Instructions for Form 8941 (2020)
Worksheet 1. Information Needed To
You paid premiums for employee health insurance
coverage you provided through a SHOP Marketplace or
Complete Line 1 and Worksheets 2
through a direct enrollment process, if available in your
and 3
state.
You qualify for an exception to this requirement, as
discussed below.
If you need more rows, use a separate sheet and include
If you answer “Yes” because you paid premiums for
the additional amounts in the totals below.
employee health insurance coverage you provided
(a)
(b)
(c)
through a SHOP Marketplace, enter the Marketplace
Individuals
Employee
Employee
identifier, if any.
Considered
Hours of
Wages
If you answer “No,” don’t file Form 8941 unless you’re
Employees
Service
Paid
filing it for a partnership, S corporation, cooperative,
 1.
estate, trust, or tax-exempt eligible small employer that
received from another entity a credit that must be reported
 2.
on line 15. For more information, see the instructions for
 3.
line 15.
 4.
Waiver for Hawaii. Hawaii has received a 5-year State
 5.
Innovation Waiver under section 1332 of the Affordable
Care Act. Employers in Hawaii can’t participate in the
 6.
SHOP Marketplace or claim the credit for insurance
 7.
premiums paid for health plan years beginning after 2016.
For more information on the waiver, visit CMS.gov.
 8.
Exception for eligible small employers in certain
 9.
counties. For calendar year 2020, SHOP Marketplaces
10.
in certain counties across the United States didn’t have
11.
qualified health plans available for employers to offer to
employees. However, relief is available, which allows
12.
eligible small employers with a principal business address
13.
in those counties to claim the credit for 2020 if they
properly claimed the credit under section 45R for all or
14.
part of 2019. For details, see Notice 2018-27, 2018-20,
15.
I.R.B. 580, available at
IRS.gov/irb/
16.
2018-20_IRB#NOT-2018-27.
17.
To see whether a particular county has coverage
available through a SHOP Exchange for 2020 and
18.
TIP
beyond, go to
Healthcare.gov/small-business
and
19.
enter “plans and prices” in the search box.
20.
Line C
21.
Answer “Yes” if a tax return you (or any predecessor) filed
22.
for a tax year beginning in 2014, 2015, 2016, 2017, or
23.
2018 included a Form 8941 with line A checked “Yes” and
line 12 showing a positive amount. For more information,
24.
see
Credit
Period, earlier.
25.
If you answer “Yes,” don’t file Form 8941 unless you’re
filing it for a partnership, S corporation, cooperative,
Totals:
estate, trust, or tax-exempt eligible small employer that
received from another entity a credit that must be reported
Column (a), Individuals Considered
on line 15. An entity that qualifies for this exception
shouldn’t report any amount on line 12. For more
Employees
information, see the instructions for line 15.
Enter the name or other identifying information for all
individuals considered employees for purposes of this
credit.
In general, all employees who perform services for you
during the tax year are taken into account in determining
your FTEs, average annual wages, and premiums paid.
Rules that apply to certain types of employees are
discussed below.
-5-
Instructions for Form 8941 (2020)