The yearly HCTC gives eligible individuals the tax credit as a refund or credit against taxes owed on their federal tax return.

How the Yearly HCTC Works
An individual has to meet all HCTC eligibility requirements to receive the yearly tax credit. You also must pay 100% of your monthly premium directly to your health plan each month and keep records of your payments.

To receive the HCTC, you complete and submit your federal tax return along with the IRS form for the Health Coverage Tax Credit, IRS Form 8885. You also have to send in supporting documents with this form. Once the IRS processes your return and form, you will receive a percentage of your premium costs as either a tax credit toward taxes you owe or a refund.

Claiming the Yearly HCTC
The PBGC or your state must notify the HCTC Program of your initial eligibility for the HCTC. Once they report you as a candidate for the tax credit, you will receive the HCTC Program Kit in the mail. You do not need to fill out the HCTC Registration Form mailed with the HCTC Program Kit to claim the yearly HCTC on your federal tax return. Please note that if your primary mailing address is outside the 50 states or the District of Columbia, you will not receive a Program Kit in the mail. Therefore, you should contact the HCTC Program to determine if you are eligible for the tax credit.

You may claim the yearly HCTC if:

• You met the eligibility requirements for the HCTC during the calendar year and did not receive the monthly HCTC
• You received the monthly HCTC but also made some payments directly to your health plan for eligible premium amounts. You can claim the yearly HCTC on your federal tax return for these eligible premium amounts you paid directly to your health plan

Visit the HCTC: Information for Yearly Filers to find out how to claim the HCTC on your federal tax return.

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