Form 8885

[helloruger]

1. I am a PBGC payee, my insurance is through my husbands railroad Early Retirement Plan which is at no cost to both of us, but we do purchase at 100% cost the Early Retirement Supplemental Plan. Does this qualify? If so, do we both get the credit?

2. If qualify, I received a letter from PBGC in September 2020 that I could possibly qualify for this credit for tax year 2019. Can I amend for that year?

[DaveF1006]

Yes, you can receive a credit for PBGC  purchase according to this Turbo Tax article.  Yes, you were able to claim this in 2019 and you can amend to receive the credit. if you meet the criteria.

1. Log into Turbo Tax
2. Go to federal>Deductions and Credits>Medical> show more  start next to Health Coverage Tax Credit.  
3. Health Coverage Tax Credit>start  
4. in the questions, it will ask if you are both eligible. The letter should specify if you are both eligible to receive the credit.
5. Note. In order to claim, one or both of you need to insured through the marketplace.

[helloruger]

Please clarify your bullet point #5. As I read the 3 requirements for the HCTC it states: You can't claim the HCTC under a qualified health care plan offered through a Health Insurance Marketplace. 

[KrisD15]

Right, the credit can't be based on a plan from the marketplace, and yours isn't since you say it is through the railroad retirement. 

Additionally, one (or both) of you need to have purchased a plan through the Marketplace. 

Yes, you can amend for 2019 if it results in a refund. 

You have 3 years from the date you filed your return (or 2 years after you paid the tax due, whichever is later) to file an amended return.

Please click here for how to amend a return you already filed