HCTC

[crodaja]

I have a HCTC question. I was layed off in March due to Covid. I paid 100% of the COBRA premiums after that. I contributed 3700 post tax to my HSA. I used that $3700 I contributed plus an additional $1933 (pre tax) to pay the COBRA premium. If I would not have contributed and used that $3700 post tax I could claim the HCTC credit.  But because I did and paid for HSA it knocks my refund down almost $4k because I don't get the HCTC credit. Is this right?

[ColeenD3]

Probably not.

Eligibility for the HCTC is restricted to the following groups of individuals:

• Individuals eligible for  Trade Adjustment Assistance 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 PDF, 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); or
   
• Are enrolled in an Affordable Care Act Marketplace insurance.