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Health Coverage Tax Credit (HCTC)

Alert Icon The Health Coverage Tax Credit has been extended to
December 31, 2021.
 

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 2020 Forms 1099-R on February 1, 2021.
     
  • To claim the HCTC for Tax Year 2020, eligible individuals must file Form 8885, Health Coverage Tax Credit with their 2020 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 IRS Form 1099-R, for benefits paid by PBGC, will be mailed to you through the U.S. Postal Service on February 1, 2021. Please allow time for delivery. Your IRS Form 1099-R will be available to download and print from MyPBA: My Benefit Access* beginning February 2, 2021.

*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

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.

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.

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.

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 our Customer Contact Center at 1-800-400-7242. Visit our Contact Us page for hours and more info. You can request a copy of Form 1099-R, which will be mailed to you within four business days.

Your Form 1099-R for benefits paid by PBGC in 2020 will be mailed to you through the U.S. Postal Service on February 1, 2021. Please allow time for delivery. Your IRS Form 1099-R will be available to download and print from MyPBA beginning February 2, 2021.

To claim HCTC for the 2020 tax year, file Form 8885, Health Coverage Tax Credit, with your 2020 federal income tax return. For more information, visit the IRS page Claiming the Health Coverage Tax Credit. Please note, PBGC will mail all 2020 Forms 1099-R by February 1, 2021.

If you have a MyPBA account with PBGC, you can log in to your account to view and print your 2020 Form 1099-R on February 2, 2021.

Last Updated: July 29, 2021