Health Coverage Tax Credit (HCTC) via PBGC

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Re: Health Coverage Tax Credit (HCTC) via PBGC

Postby ahretirement » Fri Jan 11, 2019 3:32 pm

I just received a response from Ameneh Bordi at Kirkland and Ellis regarding our HCTC question. She writes...

Avaya did reach out to PBGC in regard to this question, but did not receive a response. Alight (Avaya’s benefit’s vendor) will be issuing tax forms for the period prior to the final transition -- but it may be possible for you to reach out to PBGC and request they provide a letter stating that Alight was issuing tax forms on PBGC’s behalf due to the transition for the first half of 2018.

I'm not confident that anyone at the PBGC will respond to us and provide a letter as described by Ms. Bordi; but, I will try.

John Lawrence
Avaya Retiree 2001
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Re: Health Coverage Tax Credit (HCTC) via PBGC

Postby sgaeth » Sat Jan 12, 2019 6:42 am

Thank you John, this issue is very important to many of us. Looking forward to see if you get a favorable response!
sgaeth
 
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Re: Health Coverage Tax Credit (HCTC) via PBGC

Postby tja5577 » Wed Feb 13, 2019 9:54 am

I just spoke to the PBGC regarding the question of when they took control of the Avaya pension. They told me that even though the PBGC took Trusteeship for the Avaya pension on December 15, 2017, they did not make any actual payments until June 2018. Based on this information, it appears that we can only claim 7 months of the Health Care Tax Credit.

I was hoping that the PBGC was paying the Avaya pension for the entire year and Avaya was just handling the distribution of checks for the first 5 months, but it appears that Avaya was still paying our pensions for that time period.

This is very disappointing information, since 5 months of a 72.5% reduction in my health care premiums is a significant amount of money.

If anyone has different information, please let me know.
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Re: Health Coverage Tax Credit (HCTC) via PBGC

Postby ceilwarren » Thu Feb 14, 2019 3:01 pm

I am sharing my experience with the HCTC because is it contrary to some information being shared and came at a very high price in the end. I needed personal health care insurance coverage for one year before I turned 65. I bought a plan through a health care broker who quoted me a price that included a Health Coverage Tax Credit of over $500/month. The broker did not explain to me that she had applied the credit nor did it show up on any of my bills so I was completely unaware that I had received it. However, when I filed my tax return for last year, I found out that I was not eligible for the HCTC because I was not within 400% of the poverty line for the state in which I lived. The bottom line was that I had to pay back over $6,000 to the IRS. So my understanding is that not everyone is eligible for this credit. Please ask a lot of questions about eligibility before you apply. The same thing happened to 2 other people I know.

Ceil Warren
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Re: Health Coverage Tax Credit (HCTC) via PBGC

Postby Dave » Thu Feb 14, 2019 3:34 pm

It is my understanding that there are no income requirements to get HCTC.

The only restriction is that you cannot be on an Obamacare plan.

Where did you get your information from about being at or below the 4X of poverty?
Dave
 
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Re: Health Coverage Tax Credit (HCTC) via PBGC

Postby Dave » Thu Feb 14, 2019 3:41 pm

ceilwarren wrote:I am sharing my experience with the HCTC because is it contrary to some information being shared and came at a very high price in the end. I needed personal health care insurance coverage for one year before I turned 65. I bought a plan through a health care broker who quoted me a price that included a Health Coverage Tax Credit of over $500/month. The broker did not explain to me that she had applied the credit nor did it show up on any of my bills so I was completely unaware that I had received it. However, when I filed my tax return for last year, I found out that I was not eligible for the HCTC because I was not within 400% of the poverty line for the state in which I lived. The bottom line was that I had to pay back over $6,000 to the IRS. So my understanding is that not everyone is eligible for this credit. Please ask a lot of questions about eligibility before you apply. The same thing happened to 2 other people I know.

Ceil Warren


You were not able to claim the HCTC on your 2017 taxes because the pension had not yet been taken over by the PBGC.

I think you and your broker are confused between Obamacare and the HCTC.
Dave
 
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Re: Health Coverage Tax Credit (HCTC) via PBGC

Postby ceilwarren » Thu Feb 14, 2019 3:58 pm

My apology....after I posted my story, I realized that my issue dealt with an advance payment of the Premium Tax Credit for health care coverage. Sorry for the confusion, but if you are buying health care coverage from a broker, please ask the question if they applied an advance PTC payment to your rate.
ceilwarren
 
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Re: Health Coverage Tax Credit (HCTC) via PBGC

Postby tomindenver » Thu Mar 14, 2019 9:48 am

Received my federal tax refund yesterday which included the HCTC credit. What a relief! I submitted my return using TurboTax on Feb 17, and the refund arrived March 13.
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