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What is the Health Coverage Tax Credit?

SOLVEDby TurboTax337Updated 2 weeks ago

The Health Coverage Tax Credit (HCTC) was a refundable tax credit that paid 72.5% of qualified health insurance premiums for eligible individuals and their families. If you qualified for HCTC, it was claimed on Form 8885.

This credit expired on December 31, 2021.  If you qualified for this credit and did not take it in previous years, you can amend going back as far as three years to claim the credit on previous tax returns.

To qualify for this credit, one of the following must be true:

  • You're eligible for the Trade Adjustment Assistance (TAA) program and received a Trade Readjustment Allowance (TRA) or were entitled to receive a TRA, except you hadn’t exhausted your unemployment insurance
  • You received benefits under the Alternative Trade Adjustment Assistance (ATAA) program
  • You received benefits from the Reemployment Trade Adjustment Assistance (RTAA) program
  • You received pension benefit payments from the Pension Benefit Guarantee Corporation (PBGC) and be between 55 and 64 years old

You are not eligible for the HCTC if you:

  • Can be claimed as a dependent on another person’s federal income tax return
  • 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)
  • Purchased health insurance through Healthcare.gov or a state Marketplace

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