Step 2 - General Requirements

To be eligible for the HCTC, you must also meet some general requirements. You meet these general requirements if the following statements are true for every month that you want to claim the tax credit:

• You are not receiving Medicare benefits
• You are not entitled to health coverage through the military health system, TRICARE. This does not include health benefits received as a Veterans Affairs benefit
• You do not have health coverage through Medicaid, State Children's Health Insurance Program (SCHIP), or Federal Employees Health Benefits Program (FEHBP)
• You are not in prison
• You cannot be claimed as a dependent on someone else’s federal tax return

Eligibility for Your Family Members
Your family members can also receive the tax credit if they meet the same general requirements and you can claim them as a dependent on your federal tax return*. Note that this requirement is met if you file jointly with your spouse. Your family member must also have a qualified health plan, either the same qualified plan as you or a separate qualified plan.

According to the IRS tax code, there are two types of dependents:

1. Qualified Child
2. Qualified Relative

To find out more information about dependents, view the IRS Dependent Tax Tutorial.

* Exception for Children of Divorced or Separated Parents
Even if you cannot claim your child as a dependent on your federal tax return, he or she may be eligible for the HCTC if both of the following apply:

• You were the child's custodial parent (the parent with whom the child lived for the greater part of the year (6 months or more))
• The child's other parent can claim the child as a dependent under the rules for children of divorced or separated parents

If both of above apply, the child's other parent cannot treat the child as a qualifying family member for the HCTC. The child must also meet all of the other general eligibility requirements to be eligible for the HCTC.

Go to Step 3 - Qualified Health Plan.
Return to the HCTC Program home page.
Go to the HCTC Quick References page to view a glossary of terms, FAQs and additional resources.