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Health Coverage Tax Credit (HCTC)

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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.

For assistance on how to claim your HCTC, visit the IRS page at Health Coverage Tax Credit. The IRS also has a toll-free number for assistance on HCTC – 1-844-853-7210 – and an HCTC email address for specific questions: wi.hctc.stakehldr.en@irs.gov.

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

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

What health insurance coverage qualifies for HCTC?

For information about health insurance coverage that qualifies for HCTC, visit the IRS page 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 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.

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 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.

How do I claim HCTC for 2017?

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.

How do I claim HCTC for a year prior to 2017?

To claim HCTC for a year prior to 2017, you generally must file an amended tax return. For more information, visit the IRS page: Health Coverage Tax Credit.

How do I claim HCTC for 2016?

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.

What is the Advance Monthly Program (AMP)?

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

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