The Trade Preferences Extension Act of 2015, Public Law 114-27 extended and modified the Health Coverage Tax Credit (HCTC) through Dec. 31, 2019 when the HCTC will expire. Check this page for program updates.
This means that all advanced payments of the HCTC end Dec. 31, 2019.
However, eligible taxpayers who did not request advance monthly payments in 2019 and instead paid 100 percent of their health insurance premiums can claim the HCTC when they file their 2019 federal income tax return. Use Form 8885, Health Coverage Tax Credit, to elect and figure any eligible HCTC amounts.
Taxpayers who were previously eligible for the HCTC may want to contact their current health plan administrator for more information.
Check HealthCare.gov for health coverage options available to taxpayers and their families. This includes enrolling in health coverage through the Health Insurance Marketplace during the 2020 open enrollment period beginning November 1, 2019 through December 15, 2019. Health coverage begins January 1, 2020. Eligible taxpayers enrolling through the Marketplace may qualify for the Premium Tax Credit to help pay premiums.
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).