You are here

Health Coverage Tax Credit (HCTC)

en Español

Alert Icon The Health Coverage Tax Credit has been extended to
December 31, 2020.
 

For more information visit IRS’ Health Coverage Tax Credit page.

The Health Coverage Tax Credit (HCTC) is a federal tax credit administered by the IRS, for 72.5 percent of health care insurance premiums, which may apply to certain individuals who are at least 55 and up to 65 years of age and are receiving benefits from PBGC.

For HCTC assistance, call the IRS’ toll-free number 844-853-7210 or email 
wi.hctc.stakehldr.en@irs.gov.

What This Means for You

Advanced Monthly Payments (AMP)

  • IRS’ Health Coverage Tax Credit webpage provides information for individuals who choose to participate in the HCTC Advance Monthly Program (including those who were enrolled previously).

Tax Returns

  • IRS will accept a copy of Form 1099-R as proof of PBGC payee status for the year for which a taxpayer is claiming HCTC. The Form 1099-R is an IRS tax form for reporting distributions from pensions.

  • PBGC will mail 2019 Forms 1099-R by January 31, 2020.
     
  • To claim the HCTC for Tax Year 2019, eligible individuals must file Form 8885, Health Coverage Tax Credit with their 2019 federal income tax return. For more information, visit the IRS page Claiming the Health Coverage Tax Credit.

Obtaining Your Proof of PBGC Payee Status

  • Your Form 1099-R for PBGC benefits paid in 2019 will be mailed to you by January 31, 2020.

  • Your Form 1099-R for Tax Year 2019 will be available on MyPBA* beginning February 3, 2020.

  • If you have not received your Form 1099-R by February 3, 2020, please call PBGC’s Customer Contact Center for assistance, 800-400-7242. (TTY/ASCII: 800-877-8339, ask to be connected to 800-400-7242.) Please have your Customer Identification Number or Social Security number ready for the customer service representative to assist you.

*MyPBA is PBGC’s secure online service that lets you perform certain common transactions with us. To ensure your account is active we encourage you to log in before you plan to do your taxes.

Frequently Asked Questions

Where can I get information on how to claim my HCTC?

For information about HCTC, including FAQs and eligibility, visit the IRS page: Health Coverage Tax Credit and scroll down to Claiming the Health Coverage Tax Credit.

What health insurance coverage qualifies for HCTC?

For information about health insurance coverage that qualifies for HCTC, visit the IRS page: Health Coverage Tax Credit and scroll down to Qualifying Health Insurance Coverage.

Do I need an official letter of eligibility from PBGC to claim my HCTC?

The IRS will accept a copy of your Form 1099-R issued by PBGC in lieu of the letter of eligibility from PBGC for the year that you are claiming HCTC. Your Form 1099-R serves as proof of PBGC payee status for the HCTC.

How can I obtain another copy of my tax Form 1099-R?

If you have a MyPBA account with PBGC, you can log in to your account to view and print your Form 1099-R.

If you don’t have a MyPBA account, call PBGC’s Customer Contact Center for assistance at 800-400-7242 (8 a.m. - 7 p.m. ET, Monday - Friday, except federal holidays). You can request a copy of Form 1099-R, which will be mailed to you within four business days.

The 2019 Form 1099-R will be available on or after February 3, 2020.

How do I claim HCTC for 2019?

To claim HCTC for the 2019 tax year, file Form 8885, Health Coverage Tax Credit, with your 2019 federal income tax return. For more information, visit the IRS page Claiming the Health Coverage Tax Credit. Please note, PBGC will mail all 2019 Forms 1099-R by January 31, 2020.

If you have a MyPBA account with PBGC, you can log in to your account to view and print your 2019 Form 1099-R on or after February 3, 2020.

How do I claim HCTC for a year prior to 2019?

To claim HCTC for a tax year prior to 2019, you generally must file an amended tax return.

For more information, visit the IRS page Claiming the Health Coverage Tax Credit.

Last updated January 9, 2020