HCTC is Back, AND you can file amended returns for 2015 & 2014!!!
Health Coverage Tax Credit
The Health Coverage Tax Credit is a tax credit that pays 72.5% of
qualified health insurance premiums for eligible individuals and their
families.
Who can claim the Health Coverage Tax Credit?
You may only elect to take the HCTC if you are one of the
following:
·
An eligible trade adjustment assistance (TAA) recipient,
alternative (ATAA) recipient, reemployment (RTAA) recipient.
·
An eligible Pension Benefit Guaranty Corporation (PBGC) pension
payee.
·
The family member of a TAA, ATAA, or RTAA recipient or PBGC
pension payee who is deceased or who finalized a divorce with you.
You are not eligible if you could have been claimed as a dependent
on another person’s federal income tax return.
What health insurance plans qualify for the Health Coverage Tax Credit?
All plans that were previously qualified for the HCTC qualify for
the HCTC through 2019.
·
For 2014 and 2015 only: qualified coverage includes qualified health plans offered
through a federally facilitated or a state-based Health Insurance
Marketplace.
·
For 2016 and beyond: Health Insurance Marketplace coverage will no longer be qualified
coverage for the HCTC.
Be sure to review the Instructions for Form 8885 for information about qualified health
insurance plans that are eligible for the HCTC in 2014, 2015 and 2016.
How do I claim HCTC for 2015?
·
File Form 8885, Health Coverage Tax Credit with your 2015 income tax
return and elect HCTC when you file.
·
Attach documentation about your HCTC
eligibility, that your 2015 health plan was qualified and that the premiums
claimed for your 2015 coverage were paid.
·
Follow special instructions, if you or anyone claimed
on your federal income tax return enrolled in 2015 Marketplace coverage and
received the benefit of advance payments of the Premium Tax Credit in 2015. You
must reconcile the advance payments on Form 8962, Premium Tax Credit.
How do I claim HCTC for 2014?
·
Attach documentation that proves your HCTC
eligibility, that your 2014 plan was qualified and that the premiums claimed
for your 2014 coverage were paid.
Claimed or reconciled the Premium Tax Credit in 2014? You must follow
additional instructions to claim the HCTC. Refer to these Questions and Answers for more information.
The Trade Preferences Extension Act of 2015
The Trade Preferences Extension Act of 2015 (Public Law 114-27),
enacted June 29, 2015, extended and modified the expired Health Coverage Tax
Credit. Previously, those eligible for the HCTC could claim the credit against
the premiums they paid for certain health insurance coverage through 2013.
The HCTC can now be claimed for coverage through 2019.
The IRS continues to work with its partners, the Pension Benefit
Guaranty Corporation, the Department of Labor and State Workforce Agencies to
ensure that all eligible taxpayers receive this important credit.
Page Last Reviewed or Updated: 13-Jan-2016
Or Online at: https://www.irs.gov/Credits-&-Deductions/Individuals/HCTCPBGC HCTC Guidance:
Health
Coverage Tax Credit (HCTC)
On June 29, 2015, President Obama signed legislation to
extend the HCTC through the end of 2019. HCTC is an IRS tax credit for health
care insurance premiums, which may apply to certain individuals who are 55–65
years of age and are receiving benefits from PBGC.
Frequently Asked Questions
Q:
Do I need an official letter of eligibility from PBGC to claim my Health
Coverage Tax Credit?
A: IRS
will accept a copy of your 2014 tax form 1099-R in lieu of the letter of
eligibility from PBGC.
Q:
How can I obtain another copy of my 2014 tax form 1099-R?
A:
If you need another copy of your 2014 tax form 1099-R, log in to PBGC's MyPBA to print a copy. Your 2015 tax form
1099-R will not be available on MyPBA until February 2, 2016.
If
you don't have a MyPBA account, call the PBGC Customer Contact Center for
assistance at (800) 400-7242 (8 a.m. to 7 p.m. ET, Monday-Friday, except
federal holidays). A copy of your 2014 1099-R form will be mailed to you within
four business days. The 2015 1099-R will be mailed to you before February 1,
2016.
Q:
I don't have a computer. How can I get information about the HCTC and/or obtain
the forms to file an amended tax return to claim my HCTC?
A:
You may contact the IRS at their toll-free number, (800) 829-1040, or visit one
of their Taxpayer Assistance Centers for face-to-face assistance.
Q:
Do I mail my amended tax forms and documentation to PBGC?
A:
No. Mail your claim documents to:
Department
of Treasury
Internal Revenue Service
Austin, TX 73301-0215
Internal Revenue Service
Austin, TX 73301-0215
Q:
Where can I get more information on how to claim my HCTC?
A:
For more information about HCTC, including frequently asked questions,
eligibility and instructions, visit the IRS page: Health Coverage Tax Credit.
Last Updated: December 23, 2015
http://www.pbgc.gov/wr/benefits/hctc.html
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