Health Coverage Tax Credit Advance Payments
Form 1099-H—Health Coverage Tax Credit Advance Payments is filled out by those who receive advance payments of qualified health insurance payments for the benefit of eligible TAA, Reemployment TAA, or PBGC pension recipients. Also, Form 1099-H needs to be filed if their qualifying family members also received the above.
The purpose of this tax form is to determine those who are eligible for the benefits mentioned above to grant them a credit for lowering the health insurance premiums.
What to do with Form 1099-H?
Form 1099-H—Health Coverage Tax Credit (HCTC) Advance Payments is going to be issued to you if your health insurance provider accepted advance payments from the Department of the Treasury.
Who is eligible for HCTC-Health Coverage Tax Credit?
There are multiple reasons as to why you may receive Form 1099-H. In general, you will be furnished with a Form 1099-H for Health Coverage Tax Credit if you received or receive:
- TAA allowances due to loss of job
In addition to these, you qualify for HCTC if you’re between the ages of 55 and 64 and your benefit pension plan was taken over by the PBGC, Pension Benefit Guantary Corporation.
On Form 1099-H, you will see the amount of HCTC advance payments and the number of months the HCTC has received. You can then figure out the monthly premiums you need to pay yourself.
This tax form should be kept in your records. You may be required to show proof of the amount of advance payments made by the Department of the Treasury.
Since Form 1099-H is also going to be filed to the IRS by the health insurance provider, you don’t need to do anything additional for tax purposes. The IRS will simply have your advance payment information.