Health Coverage Tax Credit

The Health Coverage Tax Credit has been extended through December 31, 2021

The Health Coverage Tax Credit (HCTC), a Federal tax credit administered by the IRS, has been extended for all coverage months beginning in 2021. This means eligible individuals can receive a tax credit to offset the cost of their monthly health insurance premiums for 2021 if they have qualified health coverage for the HCTC. A health plan offered through the Health Insurance Marketplace is not qualified coverage for the HCTC.

A letter was sent in October 2020 advising participants in the HCTC Advance Monthly Program to seek alternative insurance options due to the impending expiration of the HCTC at the end of 2020. All participants were later removed from the HCTC Advance Monthly Program.

With the extension of the HCTC for 2021, participants may be able to work with their vendors or providers to be placed back on health coverage that qualifies for the HCTC and either re-enroll in the HCTC Advance Monthly Program or claim the HCTC on their annual Federal income tax return filed next year.

The IRS expects to begin processing Forms 13441-A on January 15, 2021; forms received prior to this date will be held for processing.

Steps to re-enroll in the HCTC Advance Monthly Program

Individuals previously enrolled in the HCTC Advance Monthly Program who wish to re-enroll must:

Forms may be submitted by one of the following:

  • Mail to the address on the form.
     
    • Fax to 855-250-1731
    • Include your HCTC PIN or last four of your SSN on each page you fax.
       
  • Include a cover sheet with the date, your name, and either your HCTC PIN or last four of your SSN.
     

Caution: email is not always secure, it's highly suggested to password protect personal information, and send the password in a separate email.

Due to high volumes, we can't send you an acknowledgment. Don't submit duplicate requests. Doing so could delay the processing of your form.

Note: Allow up to six weeks (if all requirements are met) from receipt of your new Form 13441-A to receive a response. Participants should continue to pay full premiums directly to their insurance vendor or provider until they receive the HCTC approval letter confirming their 2021 Advance Monthly Program payment amounts.

Enrolled participants may request reimbursement for 72.5% of the payments they paid directly to their vendor or provider for 2021 qualified health coverage by:

  • Filing Form 14095, HCTC Reimbursement Request, once they've submitted a payment through the program for 2021 or;
     
  • Filing Form 8885, Health Coverage Tax Credit, to claim reimbursement on their annual Federal income tax return.

Individuals not enrolled in the HCTC Advance Monthly Program, or those enrolled with vendors or providers not participating in the program, may also be eligible to claim reimbursement for 72.5% of their payments for 2021 qualified health coverage by:

Eligibility

Eligibility for the HCTC is restricted to the following groups of individuals:

  • Individuals eligible for Trade Adjustment Assistance (TAA) allowances because of a qualifying job loss.
     
  • Individuals between 55 and 64 years old whose defined-benefit pension plans were taken over by the Pension Benefit Guaranty Corporation (PBGC).

You may be eligible to elect the HCTC only if you are one of the following:

  • An eligible trade adjustment assistance recipient, alternative TAA recipient, or reemployment TAA recipient;
     
  • An eligible Pension Benefit Guaranty Corporation payee; or
     
  • The family member of an eligible TAA, ATAA, or RTAA recipient, or PBGC payee who is deceased or who finalized a divorce with you.

You are not eligible for the HCTC if you:

  • Can be claimed as a dependent on another person’s federal income tax return; or
     
  • Are enrolled in Medicare, Medicaid, the Children’s Health Insurance Program, or the Federal Employees Health Benefits Program or are eligible to receive benefits under the U.S. military health system (TRICARE); or
     
  • Are enrolled in an Affordable Care Act Marketplace insurance.

For more information about the HCTC