HCTC: Eligibility Requirements and How to Receive the HCTC

The Health Coverage Tax Credit (HCTC) can help you stay covered.

The HCTC pays 72.5% of qualified health insurance premiums making health insurance more affordable for you and your family. This page helps you determine your eligibility and explains how you can receive the HCTC, either monthly or yearly.

Begin saving today. A tax credit like the HCTC can be a huge help to your monthly budget and provide continued coverage.

Can I receive the HCTC?
To receive for the HCTC, you must:

Meet the candidate requirements. Specifically, you must be one of the following:
- Receiving Trade Adjustment Assistance (TAA) benefits - including Reemployment or Alternative TAA or
- Receiving pension payments from the Pension Benefit Guaranty Corporation (PBGC) and be 55 years old or older
- The spouse or dependant of someone who fell into one of the categories above at the time of Medicare enrollment, death, or divorce. For more information, please see the qualified family members page.
Meet the general requirements
- Learn about the general requirements and determine whether your family members are eligible, too.
Be enrolled in a qualified health plan
- Learn more about qualified health plans and view a list of state qualified health plans.

If you are a TAA recipient or PBGC payee, you will receive an HCTC Eligibility Kit in the mail. The kit includes an HCTC Eligibility Certificate, an HCTC Eligibility Guide, and a Monthly Registration Form. Please note that it can take some time for the HCTC Program to receive your eligibility information from either the state or the PBGC following a trade certification or pension trusteeship. If you believe you are a candidate for the HCTC but have not received an Eligibility Kit, you can contact the HCTC Customer Contact Center toll-free at 1-866-628-HCTC (4282).

How can I receive the HCTC?
You can receive the HCTC on a monthly or yearly basis.

You can receive the HCTC each month to help pay for your family's health insurance premiums as they become due or
You can claim the HCTC when you file your federal income tax return, for months during which you met all eligibility requirements and paid your premiums in full directly to your qualified health plan.

	How does it work?	How do I register?	Helpful Resources
Monthly	The monthly option helps you pay for health insurance as you go. You pay 27.5% of your premiums to the HCTC Program each month The HCTC Program adds 72.5% and sends the full payment to your health plan	Use the HCTC Eligibility Kit to confirm your eligibility Review the HCTC Eligibility Guide, then complete the HCTC Monthly Registration Form and collect the required supporting documents Mail the form and supporting documents back to the HCTC Program The HCTC Program will send you a monthly invoice for 27.5% of your premium once you are enrolled Learn more by going to the monthly HCTC page.	HCTC Eligibility Guide HCTC Monthly Registration Form TAA Information Guide PBGC Information Guide Required Supporting Documentation
Yearly	With the yearly option, you pay your health plan premiums in full and then claim the credit on your federal income tax return. You pay 100% of your premiums throughout the year directly to your qualified health plan. You claim the 72.5% HCTC on your federal income tax return. You receive the tax credit as a refund or as a credit toward your year-end taxes.	There is no formal registration process for the Yearly HCTC You pay 100% of your premiums each month to a qualified health plan and keep records of your payments Complete and submit Form 8885, Health Coverage Tax Credit, and required documentation with your federal income tax return Learn more by going to the Yearly HCTC page.	HCTC: Information for Yearly Filers Form 8885

How does it work?

How do I register?

Helpful Resources

Monthly

The monthly option helps you pay for health insurance as you go.

You pay 27.5% of your premiums to the HCTC Program each month
The HCTC Program adds 72.5% and sends the full payment to your health plan

Use the HCTC Eligibility Kit to confirm your eligibility
Review the HCTC Eligibility Guide, then complete the HCTC Monthly Registration Form and collect the required supporting documents
Mail the form and supporting documents back to the HCTC Program
The HCTC Program will send you a monthly invoice for 27.5% of your premium once you are enrolled

Learn more by going to the monthly HCTC page.

Yearly

With the yearly option, you pay your health plan premiums in full and then claim the credit on your federal income tax return.

You pay 100% of your premiums throughout the year directly to your qualified health plan.
You claim the 72.5% HCTC on your federal income tax return.
You receive the tax credit as a refund or as a credit toward your year-end taxes.

There is no formal registration process for the Yearly HCTC
You pay 100% of your premiums each month to a qualified health plan and keep records of your payments
Complete and submit Form 8885, Health Coverage Tax Credit, and required documentation with your federal income tax return

Learn more by going to the Yearly HCTC page.

HCTC: Information for Yearly Filers

Form 8885

Note: In some cases, monthly participants may claim the HCTC on their federal income tax return as well. Visit the Monthly Participants and Yearly Filers page to learn more.

Who cannot register for the monthly HCTC program
The monthly HCTC is not available to you if:

You have health coverage through your spouse's employer that is not COBRA
You have a foreign address outside of the United States or its territories

If you fall into one of these two categories, you can only claim the Yearly HCTC.

How can I learn more?
If you are a retiree with questions about your pension benefit, please contact the PBGC. If you are a worker who has petitioned for trade certification and would like to know your trade-affected status, please contact the Department of Labor. If you have already been trade certified and would like to begin receiving TAA benefits, please contact your local One-Stop Career Center or unemployment office.

See answers to frequently asked questions.

For more information, please contact us.

Return to the HCTC Program home page.

Page Last Reviewed or Updated: 03-Aug-2012