Do I need to reduce my Premium Tax Credit due to a health reimbursement arrangement?

If you participated in a Qualified Small Employer Health Reimbursement Arrangement (QSEHRA) you may need to reduce your Premium Tax Credit (PTC). Your employer should report reimbursement amounts on Form W-2, Box 12 code FF.

If you were covered under a QSEHRA, it affects your Premium Tax Credit (PTC) for that month:
  • If the QSEHRA is affordable that month, you cannot claim any PTC for that month.
  • If the QSEHRA is not affordable that month, reduce your monthly PTC by the permitted benefit amount.
See Publication 974  for more details.

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