HCTC extended 1 year, posted 2 days ago on IRS website

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HCTC extended 1 year, posted 2 days ago on IRS website

Postby bdbutterfield » Thu Dec 26, 2019 3:12 pm

Posted on the IRS web page https://www.irs.gov/credits-deductions/individuals/hctc 2 days ago it says the HCTC has been extended for 1 year. If you are eligible
for HCTC you will want to read this as it indicates you can work work with their vendors/providers to be placed back on HCTC qualified plans

Health Coverage Tax Credit


Businesses and Self Employed

[b]The Health Coverage Tax Credit (HCTC), a Federal tax credit administered by the IRS, has been extended for months beginning after December 31, 2019 through December 31, 2020. This means participants will receive a credit that they can use to offset the cost of their health coverage.[/b]

A letter was sent in October 2019 advising participants to seek out alternative insurance options due to the impending legislation expiration. As a result, they were removed from HCTC qualified provider plans.

Participants are now able to work with their vendors/providers to be placed back on HCTC qualified plans. Although a new letter will be sent to current participants, there may be a delay in receipt.

Next Steps:

Individuals who choose to participate in the HCTC Advance Monthly Program must submit Form 13441-A and appropriate supporting documentation to enroll. If they were previously enrolled, they must also submit Form 13441-A to re-enroll with their 2020 insurance rates. Instructions for submitting Form 13441-A can be found at: https://www.irs.gov/credits-deductions/ ... tax-credit.
The IRS expects to begin processing Forms 13441-A on January 15, 2020; forms received prior to this date will be held for processing.
Individuals should continue to pay their insurance provider directly until they receive Letter 4540 confirming their 2020 Advance Monthly Program payment amount.
Payments paid directly to the vendor/provider may be eligible for reimbursement:
Enrolled participants may request reimbursement for current year payments by using Form 14095 once they have submitted a payment through the program, or may claim reimbursement as a credit on their annual federal tax return by using Form 8885, Health Coverage Tax Credit.
Individuals who choose not to enroll, or those with vendors who are not participating in the program, may be eligible to claim Form 8885 on their annual federal tax return instead.

As mentioned above, the IRS will be sending a letter to all previously enrolled participants.

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).

For more information about the HCTC

Qualified Health Insurance Coverage
Qualifying Life Events
Qualifying Family Members
Claiming the Health Coverage Tax Credit
Third-Party Administrators

Page Last Reviewed or Updated: 23-Dec-2019
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