Claiming the HCTC requires that you are an eligible recipient of a qualifying trade adjustment assistance program, currently on an approved break from such training or receiving unemployment insurance in lieu of training. You may also qualify if you are 55 or older and a PBGC payee.

How does the Hctc work?

If you don’t request advance monthly payments and instead pay 100 percent of your health insurance premiums, you can claim your HCTC when you file your federal income tax return. This may increase your refund or lower the amount of tax that you would otherwise owe.

Are COBRA payments tax deductible?

Premiums for COBRA insurance are tax deductible, as they are paid entirely by you on an after-tax basis. If you buy medical coverage through an insurance marketplace, then premiums would be tax deductible as a medical expense.

Can I get a tax credit for COBRA?

With exceptions for coverage under multiemployer (union) plans and for State coverage continuation requirements (“Mini-COBRA”), the employer maintaining the group health plan will be entitled to a fully refundable federal payroll tax credit (technically, against the Medicare Tax) under new Internal Revenue Code Section …

What do you need to know about the HCTC?

In addition to receiving TAA or PBGC benefits, to be eligible for the HCTC, you must not be imprisoned, and you must not be covered under other health insurance, such as Medicare, Medicaid, or your spouse’s employer-sponsored health plan.

Who is not eligible for the HCTC tax credit?

You are not eligible for the HCTC if you: 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) Was this helpful?

When is last eligible month for HCTC payment?

Do not send a payment to the HCTC Program in December 2019 if it is for a coverage month that begins in January 2020 or later. The last eligible coverage month for the HCTC is December 2019.

When do I get my HCTC form from the IRS?

The IRS also has a toll-free number for assistance on HCTC – 1-844-853-7210 – and an HCTC email address for specific questions: [email protected] Your Form 1099-R for PBGC benefits paid in 2017 will be mailed to you by January 31, 2018.