Form 8885 HCTC

[helloruger]

I qualify for the HCTC. I pay my premiums a month in advance. Do I use the amount I pay each month or what I am charged per month? As I pay January's in December previous year. My rates change so it makes a difference.

[JohnW152]

Please clarify – are you referring to premiums that you pay in advance, or advance payments you receive?

According to the TurboTax article What Is Form 8885: Health Coverage Tax Credit, you would omit any advance payments you received.

See also Line 2 in the Instructions for Form 8885. 

[helloruger]

These are premiums I pay one month in advance. Please advise.

[helloruger]

I am filing for the full credit on my 2020 tax return. I did not sign up for any advanced payments. Since I have to pay my premium one month ahead, I need to know if I use the premiums charged for the months January 2020 to December 2020 or when I paid those premiums December 2019 to November 2020. As my premium increased mid year so there would be a difference. Please advise.

[ThomasM125]

You would enter what you paid during the year but exclude any premiums that were not due. So, if you paid your January 2021 premium in December of 2020,  but it wasn't due until January, you would not include it in 2020.