The Health Coverage Tax Credit is a tax credit that pays 72.5% of qualified health insurance premiums for eligible individuals and their families. The Health Coverage Tax Credit is a partial reimbursement for the premiums paid for on qualified health insurance coverage and can now be claimed for qualified coverage.
Are you eligible?
In order to be eligible to elect the Health Coverage Tax Credit you must be one or more of the following:
- An eligible trade adjustment assistance recipient, 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)
Qualifying Health Insurance Coverage
The Health Coverage Tax Program doesn’t provide health insurance coverage. You will therefore have to hold qualified health insurance to claim the credit. Individual health insurance plans that are in place for an individual or their family from a insurance company, agent or broker also qualify.