Health Coverage Tax Credit (HCTC) Election Information

 

You MUST file Form 8885 with Form 1040, 1040-SR, 1040-NR, 1040-SS, or 1040-PR on or before April 15, 2020, or request an extension to file your tax return on or before April 15, 2020, even if you’re not claiming any additional HCTC on Form 8885.

How to make an election?

  1. Check the box on line 1 of Form 8885 for the first eligible coverage month you’re electing to take the HCTC.
  2. Check all boxes on line 1 for each coverage month after the election month for which you’re eligible to take the HCTC. If you aren’t eligible to take the HCTC for a particular coverage month, do not check the box for that particular month because the election doesn't apply for that month.

NOTE: You cannot claim the HCTC on line 2 of Form 8885 for any advance monthly payment amount included on Form 1099-H. Claiming these amounts on your Form 8885 means you would receive the credit twice.

For example, you participated in the Advance Monthly Payment Program and paid $27.50 (27.5%) of a $100 monthly premium to “U.S. Treasury-HCTC.” You received a Form 1099-H showing an advance payment of $72.50 (72.5% of the $100 premium). You wouldn’t include any part of the $100 premium on line 2 because you already received the benefit of the Advance Monthly Payment Program. You must still file Form 8885 to elect the HCTC for eligible coverage months. For more information, refer to Form 8885 and its instructions.

What will happen if you don’t make a timely election?

You’ll need to repay, as an additional tax, all 2019 advance monthly payment amounts. Also, if you filed Form 14095, The Health Coverage Tax Credit (HCTC) Reimbursement Request, you’ll need to repay all reimbursements of the HCTC you received in 2019.