The Health Coverage Tax Credit (HCTC) pays 80% of health insurance premiums. To qualify for the HCTC, individuals must be receiving Trade Adjustment Assistance (TAA) benefits – including Reemployment and Alternative TAA or be over the age of 55 and receiving pension payments from the PBGC. Individuals must also be enrolled in a qualified health plan. To learn more about the HCTC, eligibility requirements, and how to enroll, click here.
Latest News
For those seeking to complete IRS Form 8885 for the Yearly HCTC
At this time, the 2009 Form 8885 is not yet available. It is anticipated that the form will be available on February 26th. To access the form when it's posted, please visit www.irs.gov and search for "Form 8885." Form 8885 should be one of the first links listed. You also can search for "HCTC," then go to the "HCTC: Information for Yearly Filers" page and click on "Fill out IRS Form 8885."
You're Invited to Attend an HCTC Information Session
The HCTC Program is conducting a number of onsite education sessions to provide you with information and answer your questions. Events are planned in the following cities:
| City | Date | Address |
| Detroit, MI | February 15th-17th | Greater Burnette Baptist Church |
| Saginaw, MI | February 18th | Four Points by Sheraton |
| Grand Rapids, MI | February 19th | Radisson Hotel |
| Miami, FL | February 25th | Holiday Inn |
HCTC representatives will be available from 9:00 AM - 3:00 PM.
HCTC overview presentations are planned for 9:30 AM, 11:30 AM, and 1:30 PM
More Recovery Act Changes for the HCTC
The Trade Adjustment Assistance Health Coverage Improvement Act was passed as part of the American Recovery and Reinvestment Act of 2009. The HCTC changed as a result of this new law.
New! HCTC Eligibility Extended for Qualified Family Members
We know paying for health insurance can be difficult, particularly after significant life events and even with the aid of Medicare. Now, after an HCTC-eligible individual enrolls in Medicare, dies, or divorces, his or her qualified family members may continue receiving the HCTC for up to 24 months. To find out more, please click here.
U. S. Territories Can Participate in Monthly HCTC
Great news! Now eligible individuals in U.S. territories are able to participate in the monthly HCTC Program. You will need to ensure that your 20% payments are received on time by the program, so consider paying in advance or using a reimbursement credit.
Find out more about the Recovery Act changes here.
HCTC Overview
The HCTC helps make health insurance more affordable for trade-affected workers, Pension Benefit Guaranty Corporation (PBGC) payees, and their families by paying 80% of health insurance premiums. Once registered for the monthly program, you'll pay 20% of your premium, we'll add 80%, and then we'll send the full 100% to your health plan for you. The HCTC is a refundable tax credit - it is paid in full no matter how much federal income tax a recipient owes. The HCTC is available on a monthly basis to help you pay for health insurance as you go, or on a yearly basis when you file your federal tax return, in which case the credit will be applied as a refund or toward your year-end taxes. The HCTC Program partners with various federal and state agencies and Health Plan Administrators (HPAs) to deliver the tax credit to eligible individuals.
History and Purpose of the HCTC
The HCTC began as a ground breaking tax credit program in 2002, and in 2009 benefits were expanded as a result of the American Recovery and Reinvestment Act (ARRA). Described by some participants as "a lifesaver," the Health Coverage Tax Credit (HCTC) is a federally funded tax credit that allows individuals to pay only 20% of their health insurance.
Nationwide, thousands of people are potentially eligible for the program. Some of them are displaced workers who are certified by the Department of Labor as eligible to receive Trade Readjustment Allowances under the Trade Adjustment Assistance(TAA) program. Others may be eligible because they receive benefits from the Pension Benefit Guaranty Corporation (PBGC) and are 55 years old or older.
Congress understood that losing one's health coverage could be as distressing as losing one's job or having one's pension taken over. The purpose of the HCTC, therefore, is to make health coverage more affordable for these groups of people who otherwise might not be insured. The HCTC is unique, because it is the first time a federal tax credit is being used to help people who are affected by trade or employers experiencing financial hardship afford health insurance coverage.
The HCTC was first made available on a monthly basis in August 2003, and on a yearly basis for Tax Year 2002. The HCTC Program continually makes operational improvements to better administer this pioneering tax credit.
Return to the HCTC Program home page.
