The Trade Preferences Extension Act of 2015, Public Law 114-27 extended and modified the expired Health Coverage Tax Credit (HCTC) through 2019.
The Health Coverage Tax Credit (HCTC) is a refundable tax credit that pays 72.5% of qualified health insurance premiums for eligible individuals and their families. Taxpayers may elect to receive the credit through their federal tax return or through advance monthly payments paid directly to their Health Plan Administrator.
Eligibility for the HCTC is restricted to the following groups of individuals:
- Individuals eligible for Trade Adjustment Assistance (TAA) allowances because of a qualifying job loss
- Individuals between 55 and 64 years old whose defined-benefit pension plans were taken over by the Pension Benefit Guaranty Corporation (PBGC)
You may be eligible to elect the HCTC only if you are one 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).