25.19.3  Eligibility

25.19.3.1  (09-01-2008)
Public Law 107-210 - Overview

  1. The Trade Act of 2002 extended and amended the Department of Labor's Trade Adjustment Act (TAA) Program and allowed a federal tax credit for health insurance premiums paid by eligible TAA recipients, and persons at least age 55, not enrolled in Medicare, and receiving pensions through the Pension Benefit Guaranty Corporation (PBGC).

  2. This refundable tax credit may be paid on an advance basis, when health plan premiums are due each month, or upon filing a Form 1040 (Federal Tax Return) with Form 8885 (Health Coverage Tax Credit).

  3. The tax credit was first available for December 2002 and the advance program began August 2003. The program is authorized through Fiscal Year (FY) 2007.

25.19.3.1.1  (09-01-2008)
Trade Adjustment Assistance (TAA)

  1. Trade Adjustment Assistance (TAA) helps trade-affected workers. Certified persons may be qualified to receive one or more TAA Program benefits and services to help them return to work.

  2. Some services include:

    • Rapid Response Assistance

    • Reemployment Services

    • Job Search Allowances

    • Relocation Allowances

    • Job Training

    • Income Support known as Trade Readjustment Allowances (TRA)

    • Training Waivers Under TAA

    • Health Coverage Tax Credit (HCTC)

25.19.3.1.2  (09-01-2008)
Alternative Trade Adjustment Assistance (ATAA)

  1. Alternative Trade Adjustment Assistance (ATAA) benefits are provided as an alternative to the benefits offered under the TAA program.

  2. Alternative assistance allows older workers, who are at least 50 years old and for whom retraining may not be appropriate, to accept another job at a lower wage and receive a wage subsidy.

25.19.3.1.3  (09-01-2008)
Pension Benefit Guaranty Corporation (PBGC)

  1. The Pension Benefit Guaranty Corporation (PBGC), is a federal agency created by the Employment Retirement Income Security Act of 1974 (ERISA) to protect pension benefits in private sector traditional pension plans and to disperse uninterrupted payment of certain pension benefits for individuals if their pension plan ends due to a company's bankruptcy.

  2. The PBGC is not funded by general tax revenues.

25.19.3.2  (09-01-2008)
Eligibility Requirement Overview

  1. TRA Benefit Recipients: The first group is people who receive a Trade Readjustment Allowance (TRA) under the Trade Adjustment Assistance (TAA) Program. This group includes people who are eligible for a TRA but have not used up their Unemployment Insurance (UI) benefits.

  2. ATAA Benefit Recipients: The second group includes workers who are at least 50 years of age, who receive a certain percentage of the wage differential between the wages of their previous, adversely-affected employment and their new full-time employment. Other criteria apply.

    Note:

    If a participant is registered for the tax credit under TAA, then becomes an ATAA participant, re-registration and re-qualification for the HCTC is required.

  3. PBGC Benefit Recipients: The third group includes individuals at least 55 years old and receiving pension benefits from the Pension Benefit Guaranty Corporation (PBGC), or who received a lump sum payment from the PBGC after August 5, 2002. Those who are at least 55 years old and are currently receiving PBGC benefits as a survivor or a beneficiary may qualify as well.

25.19.3.3  (09-01-2008)
Automatic Program Kit Overview

  1. Program Kit fulfillments are generated automatically from Trade Adjustment Assistance, Alternative Trade Adjustment Assistance, eligibility lists submitted by the State Workforce Agencies, and lists of Pension Benefit Guaranty Corporation beneficiaries from the PBGC.

25.19.3.4  (09-01-2008)
End of Month Eligibility Audit Overview

  1. The End-of-Month Audit is a survey of those HCTC eligible individuals whose status is Registered or Enrolled, for whom the states previously transmitted an Eligibility Record, but have not transmitted a record giving the individual eligibility for the current month.

  2. The audit is started at least three (3) days before the end of the month and must be completed within five (5) days.


More Internal Revenue Manual