Updated October 17, 2026. Quick answer: Codes 2F, 2G and 2H on Form 1095-C line 16 tell the IRS which section 4980H affordability safe harbor your employer used for you: the Form W-2 safe harbor (2F), the federal poverty line safe harbor (2G) or the rate of pay safe harbor (2H). They are employer-side entries. The instructions also set out the adjusted percentage for plan years beginning in 2025.
What the three codes are
All three sit in Code Series 2 on line 16. The list of situations in the filer’s instructions includes “The ALE Member met one of the section 4980H affordability safe harbors with respect to this employee”. Here the ALE Member is the employer filing the form. The recipient instructions describe the whole line: “This code provides the IRS information to administer the employer shared responsibility provisions.” And they say: “Other than a code 2C, which reflects your enrollment in your employer’s coverage, none of this information affects your eligibility for the premium tax credit.”
So 2F, 2G and 2H do not change your own credit analysis. They are a record of how the employer tested affordability. The overview for the form is Form 1095 explained.
Code 2F: Form W-2 safe harbor
The instruction is: “Enter code 2F if the ALE Member used the section 4980H Form W-2 safe harbor to determine affordability for purposes of section 4980H(b) for this employee for the year.” It carries a whole-year condition: “If an ALE Member uses this safe harbor for an employee, it must be used for all months of the calendar year for which the employee is offered health coverage.” Since the safe harbor is by the year, you may see 2F in every month in which you were offered coverage, or in the All 12 Months box.
Code 2G: federal poverty line safe harbor
The instruction is: “Enter code 2G if the ALE Member used the section 4980H federal poverty line safe harbor to determine affordability for purposes of section 4980H(b) for this employee for any month(s).” Unlike 2F, the wording says any month or months, so this code can appear in only some months.
Code 2H: rate of pay safe harbor
The instruction is: “Enter code 2H if the ALE Member used the section 4980H rate of pay safe harbor to determine affordability for purposes of section 4980H(b) for this employee for any month(s).” Like 2G, it is stated by month. Which employee-side figure the employer measured against is a question for the employer’s benefits office, because the code itself only names the safe harbor.
When a safe harbor code is not used
The instructions bar the code in a particular situation: “An affordability safe harbor code should not be entered on line 16 for any month that the ALE Member did not offer minimum essential coverage, including an individual coverage HRA, to at least 95% of its full-time employees and their dependents”. The note ties that to the employer’s filing: “any month for which the ALE Member checked the “No” box on Form 1094-C, Part III, column (a)”. Form 1094-C is the employer’s transmittal and you do not receive it.
Ranking against 2C, 2E and the others
Enrollment generally outranks a safe harbor code: “regardless of whether any other code in Code Series 2 might also apply (for example, the code for a section 4980H affordability safe harbor) except as provided below.” That is the 2C rule, covered on the line 16 code 2C page. The multiemployer rule outranks the safe harbors: “an ALE Member eligible for the relief provided in the multiemployer arrangement interim guidance for a month for an employee should enter code 2E (multiemployer interim rule relief), and not code 2F, 2G, or 2H”. See the line 16 codes 2D and 2E page. The not-employed and not-full-time codes are on the line 16 codes 2A and 2B page.
The adjusted percentage note
After the list of codes the instructions add a note about the percentage used in these tests: “References to 9.5% in the section 4980H affordability safe harbors and Qualifying Offer Method are applied based on the percentage as indexed for purposes of applying the affordability thresholds under section 36B (the premium tax credit).” And then the figures: “The percentage, as adjusted, is 8.39% for plan years beginning in 2024, and 9.02% for plan years beginning in 2025.”
This note describes the employer-side tests behind the codes. The pages ACA affordability percentage for 2026 and ACA affordability percentage for 2027 cover the percentages used on the ACA side for those years. The related line 14 code that uses the same adjusted percentage is on the line 14 code 1A page.
Where to look next on the form
Line 15 shows the dollar figure for the coverage offered, covered on the line 15 page. If your offer was an individual coverage HRA, line 17 shows a ZIP code, covered on the Part III and line 17 page. The kind of income measure used elsewhere on the return is covered in managing MAGI for ACA subsidies, and the credit calculator page is ACA subsidy calculator.
Edition and tax year
The 2025 Form 1095-C and the 2025 Instructions for Forms 1094-C and 1095-C were the ones read for this page. They were the current files on irs.gov on 2026-10-17. Check the tax year printed on the form you received.
Common mistakes
- Reading 2F, 2G or 2H as a statement that your own coverage was affordable to you. The instructions say the code reports that the employer “used the section 4980H Form W-2 safe harbor” or another named safe harbor, and the recipient instructions say it does not affect premium tax credit eligibility.
- Expecting a safe harbor code in a month with no qualifying offer. The instructions say “An affordability safe harbor code should not be entered on line 16 for any month that the ALE Member did not offer minimum essential coverage” to at least 95% of its full-time employees.
- Expecting 2F, 2G or 2H in a multiemployer month. The instructions say to enter 2E “and not code 2F, 2G, or 2H”.
Related: ACA affordability percentage for 2026, ACA affordability percentage for 2027, ACA subsidy calculator, and Managing MAGI for ACA subsidies.
Sources
- Form 1095-C (2025), Employer-Provided Health Insurance Offer and Coverage: https://www.irs.gov/pub/irs-pdf/f1095c.pdf
- 2025 Instructions for Forms 1094-C and 1095-C: https://www.irs.gov/pub/irs-pdf/i109495c.pdf
Read from the IRS documents linked above on October 17, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the account provider or the IRS is the right place to confirm anything consequential.