Health premiums credit

[David]

TP is a S Corp shareholder. His wife works for the company as well. Both are covered for health care from the company. Of course, they don't qualify for the health care premium credit.

The company hired an employee who started in September 2010. The employee worked 333 hours and earned $12K for the four months in 2010.

The instructions for Form 8941 appear to allow the full 35% credit since the FT equivalent is 1 and the annual wages are $12K.

It seems that the annual average wages should be $36K, which is the $12K of wages paid in 2010 annualized.

Is the annual average wages the actual amount of wages paid or the annualized average wages paid?

Thanks for your help.