HCTC is an IRS tax credit for 72.5 percent of health care insurance premiums, which may apply to certain individuals who are 55–65 years of age and are receiving benefits from PBGC.
The HCTC is effective through the end of 2019.
Proof of Payee Status
- Your Form 1099-R for PBGC benefits paid in 2017 will be mailed to you by January 31, 2018.
- Your Form 1099-R will be available on MyPBA* beginning February 1, 2018.
- If you have not received your 1099-R by February 7, 2018, please call our Customer Contact Center for assistance, 800-400-7242. (TTY/ASCII: 800-877-8339, ask to be connected to 800-400-7242.) Please have your Social Security number ready for the customer service representative.
*MyPBA is PBGC’s secure online service that lets you perform certain common transactions with us. If you haven't used MyPBA in a while, we encourage you to log in before you plan to do your taxes to ensure your account is active.
State Income Taxes
While PBGC is required to withhold federal income tax, we do not withhold for state taxes. If your state taxes retirement income, you may owe tax on your PBGC benefit. To find out more contact your state tax office.
Frequently Asked Questions
The IRS will accept a copy of your tax Form 1099-R issued by PBGC in lieu of the letter of eligibility from PBGC for the year that you are claiming HCTC.
Note: Form 1099-R shows information on distributions from pensions, annuities, retirement or profit-sharing plans, etc.
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 the PBGC Customer Contact Center for assistance at 1-800-400-7242 (8 a.m. to 7 p.m. ET, Monday-Friday, except federal holidays). You can request a copy of 1099 forms for years 2014, 2015, 2016 and/or 2017, and these will be mailed to you within four business days.
PBGC will mail all 2017 1099-R forms by January 31, 2018.
To claim HCTC for 2017, you must file Form 8885, Health Coverage Tax Credit, with your 2017 federal income tax return. For more information, visit the IRS page: Claiming the Health Coverage Tax Credit for Tax Year 2017.
To claim HCTC for 2016, you must file Form 8885, Health Coverage Tax Credit, with your 2016 federal income tax return. For more information, visit the IRS page: Claiming the Health Coverage Tax Credit for Tax Year 2016.
Under AMP, the IRS will pay a portion of your healthcare premium on a monthly basis.
For more information, see the IRS's Enrolling in 2018 Advance Monthly Payments of the Health Coverage Tax Credit and Questions and Answers about 2018 Advance Monthly Payments of the Health Coverage Tax Credit.
It's helpful for AMP enrollees to include the most recently available Form 1099-R issued by PBGC with your AMP enrollment form.
Last Updated: January 31, 2018