The monthly HCTC allows eligible individuals to receive the tax credit benefit each month to help pay for health insurance as premiums become due.

How the Monthly HCTC Works
An individual that is eligible for the tax credit applies to receive the monthly HCTC. You apply by filling out the HCTC Registration Form which is mailed with the HCTC Program Kit. Once you submit your Registration Form, the HCTC Program reviews it to determine if you are eligible. If you are eligible and your health plan administrator agrees to participate, you will be registered in the monthly HCTC Program.

The HCTC Program will send you an invoice once you are enrolled. You are then responsible for paying 20% of your health insurance premium to the HCTC Program by the due date each month. The HCTC Program then adds 80% to your payment and sends a check for 100% of your premium to your health plan.

Registering for the Monthly HCTC
To register for the monthly HCTC, you need to:

1. Receive the HCTC Program Kit and Registration Form in the mail. The HCTC Registration Form is not available online; you can only get a copy in the mail once the PBGC or your state alerts the HCTC Program of your initial eligibility.
2. Make sure you meet all the HCTC eligibility requirements, which are outlined in Steps 1, 2 and 3 on this website and in the Program Kit.
3. Fill out the HCTC Registration Form completely; an incomplete form or missing documents will delay the start of your monthly HCTC. If you have COBRA coverage, you must also complete and return the Addendum to the Monthly HCTC Registration Form.
4. Collect the supporting documents requested in the HCTC Registration Form.
5. Make a copy of your completed HCTC Registration Form and supporting documents for your records.
6. Use the postage-paid envelope included with the HCTC Program Kit to mail the Registration Form and supporting documents.
7. Continue to pay your health insurance bills in full directly to your health plan until you receive your first HCTC invoice. Keep records of payments you make because you can claim a 80% credit for these payments on your tax return.

Reimbursement for Monthly Premiums Paid During Enrollment in the Monthly HCTC Program
Monthly participants can request to receive reimbursement for payments made directly to a qualified health plan while eligible and enrolling in the monthly HCTC Program. To request reimbursment, complete and mail an HCTC Reimbursement Request Form.

Registration To-Do Lists
If you are registering for the monthly HCTC, you can use the following Registration To-Do Lists as a quick guide to make sure you complete all the necessary steps:

• TAA/ATAA Registration To-Do List - for individuals with TAA/ATAA eligibility
• PBGC Registration To-Do List - for individuals with PBGC eligibility

What Happens After Registering
After the HCTC Program processes your Registration Form, you will receive:

• A confirmation letter
• Your first monthly invoice
• An HCTC Registration Update Form
• An IRS Form 1099-H, once a year by January 31st, showing the months and amount of the monthly HCTC you received for the prior year; this form is informational and for your records only

Who Cannot Register for the Monthly HCTC Program
The monthly HCTC is not available to you if:

• You have health coverage through your spouse’s employer that is not COBRA
• Your primary mailing address is outside the 50 states or the District of Columbia

If you fall into one of these two categories, you can only claim the yearly HCTC on your federal tax return.

Temporary State-Level Assistance While You are Registering for the HCTC
You may be able to apply for temporary state-level assistance for the HCTC, also called National Emergency Grant (NEG) Bridge Grant or Gap-filler funds. NEG funds are intended to help individuals pay their qualified health plan premiums while they are registering for, but have not yet received, the monthly HCTC. This time period, or “gap”, ends when individuals receive their first invoice from the HCTC Program.

Refer to the NEG Contact List, or call the U.S. Department of Labor toll-free at 1-877-US-2JOBS to learn more about NEG Bridge Grants and to find out if they are available in your state.

How Long Can You Receive the Monthly HCTC?
You can receive the monthly HCTC for as long as you:

• Send your 20% payment each month by the HCTC due date
• Continue to meet all the eligibility requirements, including maintaining your eligibility for PBGC, TAA or ATAA benefits
  • TAA recipients: you must continue to file for TAA or ATAA benefits each month. After you do, your state will notify the HCTC Program, which will allow you to remain enrolled in the monthly HCTC Program. If you stop receiving a monetary benefit (unemployment insurance or a Trade Readjustment Allowance) or you are no longer in TAA-approved training or no longer have a training waiver, your eligibility will expire in the HCTC system. However, you will have an extra month, or “grace” month, of receiving the tax credit after your TAA benefits end. For example, if your TAA benefits end in January the last month you can receive the HCTC is February.

Return to the HCTC Eligibility Requirements and How to Receive the HCTC page.
Find out information about the yearly HCTC.
Return to the HCTC Program home page.
Go to the HCTC Quick References page to view a glossary of terms, FAQs and additional resources.