Retirement tax questions

The Health Coverage Tax Credit (HCTC) was a federal tax credit administered by the IRS for 72.5 percent of health care insurance premiums. HCTC may have applied to certain individuals at least 55 and up to 65 years of age which are receiving benefits from PBGC

Eligible for the HCTC if you are:

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

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 benefits under Medicare, Medicaid, the Children’s Health Insurance Program, the Federal Employees Health Benefits Program or eligible to receive benefits under the U.S. military health system.

For Records and Eligibility Documentation: a copy of the official letter from the PBGC stating you received a benefit paid by the PBGC or a  copy of Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, from the PBGC showing you received a benefit paid by the PBGC.

Health Coverage Tax Credit