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HCTC Information Session for TAA Audiences

On December 19, 2011 the Health Coverage Tax Credit Program hosted an information session that provided TAA representatives with an overview of the recent changes to the program due to the Trade Adjustment Assistance (TAA) Extension Act of 2011. If you were unable to attend, or would like to watch a replay, please click on the links below to view the presentation. It is available in two formats: .wmv for Windows Media Player users, and .avi for other media player users.

12/19/2011 HCTC Information Session.wmv
For all Windows Media Player users

12/19/2011 HCTC Information Session.avi
For all other media player users

Helpful Materials for Partners

  • TAA Information Guide – Quick reference sheet that provides information on the HCTC eligibility requirements, qualified health plans, and how TAA recipients can receive the HCTC.
  • PBGC Information Guide – Quick reference sheet that provides information on the HCTC eligibility requirements, qualified health plans, and how PBGC payees can receive the HCTC.
  • HCTC Eligibility Guide- The guide is a comprehensive document that outlines all of the HCTC eligibility requirements, the types of qualified health plans, and how to receive the tax credit.  The HCTC Eligibility Kit is the initial mailing sent to all candidates; which includes an HCTC Eligibility Certificate, Eligibility Guide, and Monthly Registration Form. 
  • NEG Contact List – Document that lists the states offering National Emergency Grants (NEG’s) with contact information.

Frequently Asked Questions
Many of the attendees asked great questions during the Information Session or emailed us after the presentation. We have highlighted some of the most frequently asked questions that we received as a result of this information session below. If you cannot find the answer to your question or would like more information, please email us—we're here to help.

Question

Answer

For those that received the 65% NEG Bridge grant during March – December 2011, can they request the additional 7.5% retroactive credit with their federal income tax return? Yes, they can. Participants who received NEG Bridge Grant or Gap Filler assistance from their state from March – December 2011, are also eligible to receive the additional 7.5% retroactive credit. Participants will need to determine the 7.5% calculation on their own, as it will not be provided to them with the Form 1099-H, and claim the retroactive credit by filing Form 8885, Health Coverage Tax Credit, with their Form 1040, U.S. Individual Income Tax Return.
Can qualified family members have their health insurance premiums reimbursed back to January or March?

Qualified family members can claim the HCTC for all months in 2011 in which they paid 100% of their health insurance premiums directly to a qualified health plan. They can claim the tax credit by filing Form 8885, Health Coverage Tax Credit, with their Form 1040, U.S. Individual Income Tax Return. Premiums paid in January and February can be claimed at 80% and the months of March – December can be claimed at 72.5%.

For important information on how to claim the Yearly HCTC, visit the qualified family members page.

Why do all these provisions end on January 1, 2014? The TAA Extension Act of 2011 set an end date for the HCTC program, which is January 1, 2014. On that date, the HCTC will no longer be available.
What should we tell an individual if their employer refuses to extend their COBRA coverage?

If an employer refuses to extend COBRA coverage for an individual, you can recommend that they send questions to the Internal Revenue Service at the address below:
     Internal Revenue Service
     Cincinnati Compliance Services (CEO)
     Attn: COBRA – MS 5701G
     201 West Rivercenter Blvd
     Covington, KY 41011

For more information on COBRA coverage extensions, visit the Latest News page.

How do I request updated informational brochures for distribution? We are in the process of updating all of our brochures to reflect the recent legislative changes to the HCTC Program.  If you would like to request brochures, please email us with the quantity and where you would like the materials sent.  Once the brochures have been updated, we will begin fulfilling requests. 
Do current participants need to do anything to receive the 72.5% credit?

No.  Participants who are currently enrolled in the monthly HCTC program do not need to submit anything to begin receiving the 72.5% tax credit.  No action is necessary.

Starting January 2012, individuals who are enrolled in the monthly HCTC program will receive an invoice reflecting their updated 27.5% invoice amount.  The monthly HCTC program will begin paying 72.5% of their qualified health insurance premiums.

However, participants who received the 65% tax credit through the Monthly HCTC in any month from March – December 2011, are eligible to receive an additional 7.5% retroactive credit.  Participants eligible to claim the retroactive credit must file Form 8885, Health Coverage Tax Credit with their Form 1040, U.S. Individual Income Tax Return. Instructions on how to claim this additional credit will be included with the Form 1099-H, Health Coverage Tax Credit (HCTC) Advance Payments, which will be mailed by January 31, 2012.


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Return to the HCTC Information for Partners page.

Go to the HCTC Quick References page to view a glossary of terms, Frequently Asked Questions and additional resources.




 

Page Last Reviewed or Updated: 2012-08-04