Am I exempt from the requirement to have health care coverage if I’m eligible for the Health Coverage Tax Credit?
Due to the delay in the reinstatement of advance HCTC payments from July through December 2016, if you weren’t enrolled, but were eligible for HCTC-qualifying health insurance coverage, you will be entitled to a hardship exemption. This exemption from the individual shared responsibility provision is for any months between July and December that you were HCTC-eligible.
In general, you (and your spouse and dependents) are eligible for HCTC in either of the following situations:
- You received Trade Adjustment Assistance, including Alternative Trade Adjustment Assistance and Reemployment Adjustment Assistance. HCTC eligibility ends the month after the month in which trade adjustment assistance ends.
- You’re between the age of 55 and 65 and receiving payments from the Pension Benefit Guaranty Corporation.
This exemption is claimed in the Federal Taxes section under the Health Insurance tab:
- Select whether you had insurance part of the year or not at all, and then any months you had coverage.
- At the Did you have a situation that waives the tax penalty for being uninsured? screen, under “Wasn’t required to get insurance”, select “Was eligible for the Health Coverage Tax Credit”.
- You’ll then be asked which months you were eligible for HCTC. Select the appropriate months—any portion of a month counts as the whole month.