IRS will make advance monthly payments every 20th day of the month to HPAs for 100% of monthly participant insurance premiums. It generally takes up to 5 business days to process payments. We will only accept payments for one month at a time.
Any receipts of the 27.5% participant portion received after the 10th of each month will be paid in the following monthly cycle (21st through the 10th of the following month).
The letter from the IRS will confirm your 27.5 percent monthly payment amount for your portion of the premium. It includes instructions for making your monthly payment.
Your exact payment amount is due by the 10th day of each month. We must receive your payment by the HCTC due date. If your payment is less than the exact amount due, we won’t accept it and will return the payment to you. If we return your payment, you’ll be responsible for paying 100% of the unpaid premium directly to your health plan administrator. Any overpayment above the exact amount will be returned back to you. If a payment is less than the exact amount due, the payment will be returned and the individual is responsible for paying the unpaid premium directly to their health plan administrator. The participant should contact their HPA/TPA regarding any unexpected overpayment.
Follow these steps to make your monthly premium payment to the AMP HCTC program:
- To ensure we apply your payment correctly and timely, you must mail the fillable Form 13973, Health Coverage Tax Credit Blank HCTC Payment Coupon each month with your payment.
- Ensure your Participant Identification Number (PIN) is correct and legible on the voucher.
- Include the bottom portion of the HCTC payment coupon with your payment. Failure to provide all required information could delay processing of your payment or the return of your payment if after research, the IRS cannot verify payment posting.
- Mail the payment coupon along with your payment to:
US Treasury – HCTC
P.O. Box 970023
St. Louis, MO 63197-0023
The AMP HCTC program adds the 72.5 percent advance portion of the HCTC to your payment amount and sends the full payment to your health plan administrator each month.
The AMP HCTC Program accepts the following payment methods by mail: personal check, business check, certified check, cashier's check, and money order. Make your payment payable to US Treasury – HCTC. Write your HCTC Participant Identification Number on your payment and on your Form 13973, Health Coverage Tax Credit Blank Payment Coupon.
There is no penalty assessed by the Advanced Monthly Program for missing a monthly payment through the program, however penalties and charges up to termination may be assessed by your Administrator. If you have missed a payment, please contact your administrator to determine the status of your account.
Occasionally payments are returned to the HCTC program by Administrators. Payments could be returned due to a variety of reasons such as payment errors or account overpayments. When a payment is returned to the program research is conducted to determine why the payment was returned and where the payment should be allocated. When possible, payments will be remitted to Administrators to correct payment issues. If we are unable to correct the payment issue, the 27.5% payment will be refunded to the participant. Please allow 12 weeks from the date the payment was returned by the administrator for refund processing. If you are aware that a payment error has been made, please notify the program as soon as possible.
Repayment of amounts when ineligible: When enrolled in the monthly HCTC Program, you must inform the IRS of all changes that affect your eligibility and Family Member’s eligibility. If payments were made on your behalf, while ineligible, then it will be your responsibility to pay them back. You should include Form 8885 with your tax return and follow line 5, Form 8885 instructions, for Excess Advance HCTC Repayment.
Note: If you were eligible and did not request advance monthly payments in 2018/2019 and instead paid 100 percent of your health insurance premiums in 2018/2019, you can claim your HCTC when you file your federal income tax return.
You can request an HCTC reimbursement credit for premiums you paid directly to a qualified health plan for pre-enrollment coverage months in 2019. You must be a Monthly HCTC Participant, have received a letter from the IRS confirming your 2019 enrollment, and made at least one payment through the program for your request to be considered by the IRS.
You can request reimbursement beginning with the first pre-enrollment coverage month that you would have been eligible to receive the HCTC but you either chose not to be in the monthly HCTC Program or you had not received confirmation from the IRS that you were enrolled. Qualified family members applying for the HCTC after the Pension Benefit Guaranty Corporation (PBGC) payee or TAA recipient has enrolled in Medicare, finalized a divorce, or deceased can request reimbursement starting with the month in which the event took place.
Mail Form 14095, Health Coverage Tax Credit (HCTC) Reimbursement Request Form, and include the required documentation to the address listed on the form to request a 2019 HCTC reimbursement credit. Follow the instructions on Form 14095 to determine your eligibility and confirm you’ve included supporting documents to verify your eligibility. Once you mail the HCTC Reimbursement Request Form, it can take up to 12 weeks - if all requirements are met - before you receive your reimbursement by check. The IRS will mail a letter if your request is not approved or if additional supporting documentation is needed.
We will not process any reimbursement requests for months in which a payment was made on your behalf through the Advanced Monthly Program. If you made payment directly to your Administrator and through the Advanced Monthly Program in the same month you should contact your Administrator to determine how the payment was applied—your Administrator may advise you that you are paid ahead and to skip a payment month.
To allow for end of year processing the IRS will not accept Forms 14095 for the 2019 processing year after October 1, 2019. Reimbursement for any payments made during 2019 can still be claimed using Form 8885 when filing your federal tax return in 2020.
This statement is provided to you because the IRS HCTC Program made monthly payments of the HCTC on your behalf to cover a portion of your insurance costs in 2018. This statement refers to these payments as advance payments. Form 8885, Health Coverage Tax Credit, and its instructions provide details on how to make the election needed to claim the HCTC and reconcile HCTC advance payments. You must file Form 8885 with Form 1040, 1040NR, 1040-SS, or 1040-PR to elect the HCTC even if you’re not claiming any additional HCTC on Form 8885. Include all eligible coverage months when you complete Form 8885, line 1, to elect to receive the benefit of the HCTC and confirm your monthly eligibility for the HCTC. See the instructions for Form 8885 for information on when you have an eligible coverage month.
It is important to note that you MUST reconcile Advance Monthly Payments with your eligibility to claim the Health Coverage Tax Credit (HCTC) on Form 8885, Health Coverage Tax Credit, and MUST make an election to claim the benefit of the HCTC for 2018 by the due date of your tax return (including extensions). You MUST file Form 8885 with Form 1040, 1040NR, 1040-SS, or 1040-PR on or before April 15, 2019, or request an extension to file your tax return on or before April 15, 2019, even if you’re not claiming any additional HCTC on Form 8885. Failing to make a timely election will require you to repay as an additional tax all 2018 Advance Monthly Payment amounts and all reimbursements of the HCTC you received in 2018 because you filed Form 14095, The Health Coverage Tax Credit (HCTC) Reimbursement Request.
Due to the recent government shutdown, there will be a delay in 1099-H mail-outs. Form 1099-H reflects the months that you made payments through the Advance Monthly Payment Program. This form is informational and assists in the filing of Form 8885 (Health Coverage Tax Credit). You should still be able to file your individual income tax return based on your own records and those of your Health Plan Provider.
Please note, we cannot issue a Form 1099-H based on when the payments were applied as each Health Plan Administrator (HPA)/ Third Party Administrator (TPA) determines how to apply the payments they have received. Please contact your administrator if you have questions about how the payments were applied.