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HCTC: Eligibility Requirements and How to Receive the HCTC

The Health Coverage Tax Credit (HCTC) can help you stay covered.

The HCTC pays 72.5% of qualified health insurance premiums making health insurance more affordable for you and your family. This page helps you determine your eligibility and explains how you can claim the HCTC. The HCTC is not available for tax years after 2013

Can I claim the HCTC?
To claim the HCTC, you must: 

    1. Meet the candidate requirements. Specifically, you must be one of the following:

  •  An eligible  Trade Adjustment Assistance (TAA), Alternative TAA(ATAA), or Reemployment TAA (RTAA) recipient. An eligible TAA recipient is  someone who receives a Trade Readjustment Allowance (TRA) or is in an approved break in training, or receives Unemployment Insurance (UI) in lieu of TRA, while otherwise eligible for TRA. TAA recipients also must meet eligibility deadlines for enrollment in TAA approved training or receive a written waiver to maintain HCTC eligibility.
  •  A Pension Benefit Guaranty Corporation (PBGC) payee who is 55 years old or older.
  •  A qualified family member of an individual who fell under one of the categories listed above at the time of Medicare enrollment, death, or divorce.  For information on establishing HCTC eligibility and how to claim the HCTC if you are a family member, please see the qualified family members page.

    2. Meet general requirements.  You meet the general requirements for the HCTC if the following statements are true for every month you want to receive the tax credit:

  •  You are covered by a qualified plan for which you pay more than 50% of the premiums.
  •  You are not enrolled in Medicare Part A, B, C; or you are enrolled in Medicare but only claiming premiums for your qualified family members.
  •  You are not enrolled in Medicaid, or the Children's Health Insurance Program (CHIP).
  •  You are not enrolled in Federal Employees Health Benefits Program (FEHBP) or eligible to received benefits under the U.S. military health system (TRICARE).
  •  You are not in prison under federal, state, or local authority.
  •  You cannot be claimed as a dependent on someone else's federal income tax return.

     3. Be enrolled in a qualified health plan
           Learn more about qualified health plans and view a list of state qualified health plans.

Once the HCTC Program is notified, TAA recipients and PBGC payees, will be mailed an HCTC Eligibility Certificate. Please note that it can take some time for the HCTC Program to receive your eligibility information from either the state or the PBGC following a trade certification or pension trusteeship. If you believe you are a candidate for the HCTC but have not received an Eligibility Certificate, you can contact us.

If you believe you are eligible and would like to learn more about claiming the Yearly HCTC, please visit the HCTC Information for Yearly Filers page.

How can I learn more?
If you are a retiree with questions about your pension benefit, please contact the PBGC at 1-800-400-7242.  If you are a worker who has petitioned for trade certification and would like to know your trade-affected status, please contact the Department of Labor at 1-877-872-5627.  If you have already been trade certified and would like to begin receiving TAA benefits, please contact your local One-Stop Career Center or unemployment office.

 

Return to the HCTC Program home page.

 

Page Last Reviewed or Updated: 02-Jan-2014