Updated November 4, 2026. Quick answer: Worksheet Q in Publication 974 (2025) is the IRS calculation that lowers your monthly premium tax credit by the monthly permitted benefit from a QSEHRA when that benefit was not affordable. Part I and Part II handle an even benefit over the whole year. Part III handles benefits that changed or months that were affordable, and lines 23 to 27 add back the months with no QSEHRA.
Pub 974 worksheet walk-throughs: Pub 974 Worksheet F.
When Worksheet Q applies
The publication ties the sheet to the QSEHRA rules: “If you are provided a QSEHRA, and it is considered affordable coverage for a month, no PTC is allowed for that month.” The Form 8962 instructions say the same: “If the QSEHRA is affordable for a month, no PTC is allowed for the month.” For an unaffordable month the publication sends you here: “Use Worksheet Q to figure your monthly PTC for months in which you were provided a QSEHRA.” Whether a month was affordable is decided on Worksheet N, and the permitted benefit itself is in box 12 of Form W-2 with code FF.
Which part to complete
The worksheet opens with two routing rules. “If the monthly permitted benefit was the same for each month you were provided the QSEHRA and the QSEHRA was not considered affordable for all of those months, go to Part I.” The other branch reads “If the monthly permitted benefit was not the same for each month you were provided the QSEHRA or the QSEHRA was considered affordable for some but not all the months it was provided, go to Part III.” The caution adds a trap: “If you received a self-only permitted benefit for part of the year and a family permitted benefit for another part of the year, you must complete Part III even though the amount reported on your Form W-2 reflects this change.”
Part I and Part II, lines 1 to 8
| Line | What it asks |
|---|---|
| 1 | “Enter the amount from box 12, code FF , of Form W-2” |
| 2 | “Enter the number of months you were provided the QSEHRA in 2025” |
| 3 | “Divide line 1 by line 2.” This is the monthly permitted benefit; it then sends you to Part II if you are completing Form 8962 line 11, or to Part III for lines 12 through 23 |
| 4 | “Enter the smaller of Form 8962, line 11, column (a) or (d)” |
| 5 | “Divide line 4 by 12.0” |
| 6 | “Enter the smaller of line 3 or line 5” |
| 7 | “Multiply line 6 by line 2” |
| 8 | “Subtract line 7 from line 4.” The result goes on Form 8962, line 11, column (e), with QSEHRA written in the top margin |
Line 6 is the heart of Part II: the credit is reduced by the smaller of the monthly benefit and one twelfth of the annual credit, so a benefit larger than the credit cannot push the credit below zero.
Part III, the monthly calculation
Part III has one row per month, January to December (lines 9 to 20), with three columns. For column A the publication says “If you completed Form 8962, lines 12 through 23, enter the smaller of column (a) or (d) on the lines in Part III for the months you were provided a QSEHRA.” Column B depends on affordability: “For the months the QSEHRA is considered affordable coverage, enter in column B the amount you entered in column A.” For unaffordable months, “If you completed Part I, enter the amount from line 3 on the lines for the months you completed column A.” “If you skipped Part I, enter the monthly permitted benefit amount (the amount from box 12, code FF , of Form W-2, divided by the number of months you were provided the QSEHRA) on the lines for the months you completed column A.” Column C is “Subtract col. B from col. A.” and it cannot go below zero.
Lines 21 to 27, where the answer goes
| Line | What it asks |
|---|---|
| 21 | “If you are completing Form 8962, lines 12 through 23, stop here and enter the amounts from column C above in column (e) for the months you completed column A.” |
| 22 | “If you are completing Form 8962, line 11, add the amounts in column C above and enter the result here.” |
| 23 | “Enter the smaller of Form 8962, line 11, column (a) or (d)” |
| 24 | “Divide line 23 by 12.0” |
| 25 | “Multiply line 24 by the number of months you were provided the QSEHRA in 2025” |
| 26 | “Subtract line 25 from line 23” |
| 27 | “Add lines 22 and 26.” This is the Form 8962 line 11, column (e) entry when the QSEHRA did not cover all of 2025 |
The sheet also tells you to write QSEHRA in the top margin of Form 8962 for every entry it produces. The line-by-line walk through that form is on the Form 8962 lines 11 to 23 page.
Example, annual calculation, invented numbers
Illustration, not an IRS example. Invented inputs, with every result computed from them: an employee had a QSEHRA for all 12 months, W-2 box 12 code FF shows $4,800, and Form 8962 line 11 shows $9,000 in column (a) and $7,200 in column (d).
| Line | Entry | Amount |
|---|---|---|
| 1 | Form W-2, box 12, code FF (invented) | $4,800 |
| 2 | Months provided the QSEHRA (invented) | 12 |
| 3 | Line 1 divided by line 2 (computed) | $400 (computed) |
| 4 | Smaller of Form 8962 line 11 column (a) $9,000 or (d) $7,200 (invented columns) | $7,200 |
| 5 | Line 4 divided by 12.0 (computed) | $600 (computed) |
| 6 | Smaller of line 3 or line 5 (computed) | $400 (computed) |
| 7 | Line 6 times line 2 (computed) | $4,800 (computed) |
| 8 | Line 4 minus line 7 (computed): Form 8962 line 11, column (e) | $2,400 (computed) |
The monthly benefit is $400 and one twelfth of the credit is $600, so line 6 is $400. Line 7 is $4,800 and the credit entered in column (e) falls from $7,200 to $2,400. A benefit larger than the credit would have been capped by line 6 and the result could not fall below zero.
Example, monthly calculation, invented numbers
Illustration, not an IRS example. Invented inputs, with every result computed from them. Form 8962 line 11 shows $6,000 in column (a) and $5,400 in column (d). A QSEHRA covered July to December only (six months), the W-2 shows $2,100 in box 12 code FF, and the QSEHRA was affordable for July to September and not affordable for October to December. Column A is the smaller of $500 and $450, which is $450 a month. The employee skipped Part I, so the unaffordable-month figure is $2,100 divided by 6, which is $350.
| Month | A: tentative credit | B: monthly permitted benefit | C: A minus B, not below zero |
|---|---|---|---|
| July | $450 | $450 | $0 |
| August | $450 | $450 | $0 |
| September | $450 | $450 | $0 |
| October | $450 | $350 | $100 |
| November | $450 | $350 | $100 |
| December | $450 | $350 | $100 |
Line 22 adds column C: $300. Because the QSEHRA did not cover all of the year, lines 23 to 26 are computed in turn. Line 23 is $5,400. Line 24 is $5,400 divided by 12, which is $450. Line 25 is $450 times 6, which is $2,700. Line 26 is $5,400 minus $2,700, which is $2,700. Line 27 adds lines 22 and 26: $300 plus $2,700, which is $3,000 for column (e).
Edition
This page reads Publication 974 (2025), Premium Tax Credit (PTC), the file irs.gov served on 2026-11-04 (sha256 in the kit data). Line numbers and letters belong to that edition, so check the label printed on the worksheet in your own copy before you follow a line reference.
Common mistakes
- Using Worksheet Q for a month the QSEHRA was affordable. An affordable month allows no credit at all, so column B copies column A.
- Dividing the W-2 amount by 12 when the QSEHRA ran for fewer months. Line 3 divides by the months provided, line 2.
- Skipping Part III when the benefit changed from self-only to family coverage. The caution on the sheet requires Part III.
- Leaving QSEHRA out of the top margin of Form 8962 when column (e) was reduced.
Related: Worksheet N, Form 8962 lines 11 to 23, and the QSEHRA limit for 2026.
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Answer againSources
- Publication 974 (2025), Premium Tax Credit (PTC): https://www.irs.gov/pub/irs-pdf/p974.pdf
- Instructions for Form 8962 (2025), Premium Tax Credit (PTC): https://www.irs.gov/pub/irs-pdf/i8962.pdf
Read from the IRS documents linked above on November 4, 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.