What is the Health Coverage Tax Credit?
The Health Coverage Tax Credit (HCTC) is a refundable tax credit that pays 72.5% of qualified health insurance premiums for eligible individuals and their families. If you qualify for HCTC, it’s claimed on Form 8885.
To qualify for this credit, you must have received one of the following types of assistance:
- Eligible for the Trade Adjustment Assistance (TAA) program and received a Trade Readjustment Allowance or was entitled to receive TRA except you hadn’t exhausted your unemployment insurance
- Benefits under the Alternative Trade Adjustment Assistance (ATAA) program
- Benefits from the Reemployment Trade Adjustment Assistance (RTAA) program
- Pension benefit payments from the Pension Benefit Guarantee Corporation (PBGC) and be age 55 to 65