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Account NC 2022
Level 1

Nonrefundable portion of COBRA



I have us QB desktop enhanced payroll.  I'm noticing that my Q1 2022 941 returns if taking a credit for Non refundable portion of COBRA with an option for a refund or to apply to the next period. Is credit available for everyone even though I didn't have any COBRA or paid time off for employees? 

Any info would be helpful. 


Thank you, 


3 Comments 3
QuickBooks Team

Nonrefundable portion of COBRA

Good day to you, @Account NC 2022.

The nonrefundable portion of the COBRA credit is limited to the employer's share of Medicare tax on wages paid in the quarter. The remaining after that share is first reduced by any credit claimed on Form 941, line 11d.


For more information about this, you can check the Nonrefundable portion of COBRA premium assistance credit (Form 941, line 11e) section in this article: Instructions for Schedule B (Form 941) (03/2022).


Furthermore, I suggest contacting the IRS for further guidance. They can provide additional details  about this and how to handle this type of situation.


I've also added this article that provides complete information about the changes in reporting tax liabilities: Changes to Reporting Tax Liabilities if you Claim Certain Nonrefundable Credits.


I'll be around if you have other follow-up questions about your taxes or with your QuickBooks Desktop (QBDT). I'll be more than happy to help you. Have a good one!

Nora S
Level 1

Nonrefundable portion of COBRA

I am working in QB 2021 Premier Accountant.  When creating a 941 for Q1 QB is entering the medicare amount automatically in line 13f for COBRA credit.  I am not able to override.  I have run updates, reboot and tried another company file.  Same issue. 

QuickBooks Team

Nonrefundable portion of COBRA

Welcome to the QuickBooks Community, Nora S. I appreciate you for performing some steps to fix the issue. I'll be providing details on how 13f works in QuickBooks Desktop. Then, to ensure you'll be routed to the right support team to assist you further on this matter.


Line 13f in QuickBooks Desktop is taken from amounts entered for the Other Tax Payroll Item, US - COBRA Subsidy Credit. Usually, these amounts should be entered on liability adjustments per employee as negative amounts, in order to flow to line 11e correctly.


However, the issue about Line 13f is reporting the wrong amount on 941 has been recently tagged as an ongoing issue. Our product engineers are now working to fix this as soon as possible. For now, you can fill out and file the form outside QuickBooks as a workaround.


I recommend contacting our QuickBooks Desktop Support Team, so they can add you to our notification list. This will help our engineers determine the number of affected users. You'll also receive an update through email once this has been resolved.


Additionally, I'm adding this article so you'll be able to see different details on how QuickBooks populates each Line on 941: How QuickBooks populates Form 941.


Lastly, you may refer to this article to view common issues with Form 941 or Schedule B and how to fix them: Troubleshoot Form 941 in QuickBooks Desktop Payroll.


If you have any other questions about 941, mention me in the comment section below. I'll get back to you as quickly as possible.

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