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Benefit Your Future: Health Coverage Tax Credit (HCTC)|
Benefit Your Future Health Coverage Tax Credit (HCTC) |
Last Updated: June 02, 2008 |
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DOL Web Site
DOL Divisions and Programs
Tax Credit Programs
Benefit Your Future: Health Coverage Tax Credit (HCTC)
Health Coverage Tax Credit (HCTC)
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What Benefit Does The HCTC Provide? |
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What Is Qualifyng Health Insurance? |
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HCTC Application Process |
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HCTC Contact Information |
What Benefit does the HCTC Provide?
The HCTC is a federal refundable tax credit that pays 65% of the qualified health insurance premiums paid by eligible individuals. The eligible individual pays the remaining 35% of the premium. If you are eligible, you can use the HCTC to help purchase health coverage for yourself and your family members. Eligible individuals can apply for the refund at the end of the year on your income tax return even if you do not owe federal income tax, or effective August 1, 2003 you can receive an advance to help pay for health insurance premiums as they become due.
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Who is Eligible for the Health Coverage Tax Credit?
Individuals with qualifying health insurance who are:
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Receiving a Trade Readjustment Allowance (TRA), or |
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Eligible to receive TRA except they have not exhausted unemployment insurance (UI) benefits, or |
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Receiving benefits under Alternative Trade Adjustment Assistance (ATAA), or |
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Receiving a Pension Benefit Guaranty Corporation (PBGC) benefit payment, and are 55 years or older, and are not eligible for Medicare. |
| Note: Workers eligible for HCTC based on income support from Trade Adjustment Assistance (TAA) remain eligible only as long as they continue to receive TRA/UI/ATAA. They qualify for the credit for only one month after TAA income support stops. If claiming advance HCTC credit, this means they will have to resume paying 100% of the insurance premium, then re-apply through the HCTC Center if they should again begin receiving TRA/UI/ATAA benefit payments. If claiming end-of-the-year credit, subsequent receipt of benefit payments (including retroactive receipt) will result in the proper identification of the months as HCTC-applicable for the purposes of claiming the tax credit. |
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What is Qualifying Health Insurance?
Qualifying Health Insurance includes:
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Consolidated Omnibus Budget & Reconciliation Act of 1986 (COBRA) continuation coverage |
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Spousal Coverage if the employer subsidizes less than 50% of the premium |
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Individual Policy if the policy began 30 days prior to separation from the employer |
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Health Reinsurance Association of Connecticut (phone number: 1-800-842-0004) |
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State-based COBRA continuation coverage |
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Trade Act Participants
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The individual is advised he or she is a potential HCTC candidate when he or she receives the 857 TRA Approval form and/or an affirmative ATAA determination notice, based on eligibility for TAA/ATAA income support. |
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Once the individual begins receiving TRA, UI or ATAA benefits, he or she is added to a daily file transmitted by Connecticut DOL to the HCTC program, to identify the individual as a potential HCTC candidate. |
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The HCTC Customer Contact Center sends the worker a Health Coverage Tax Credit Program Kit and Registration Form. |
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The worker completes the registration form and submits any required documents to the HCTC Processing Center. |
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The HCTC Customer Contact Center evaluates the worker's health coverage and determines HCTC eligibility. |
Pension Benefit Guaranty Corporation Recipients
Each month the PBGC sends the HCTC an eligibility list. The list contains the names of all PBGC retirees and other individuals (such as individuals who applied for a lump sum payment after August 5, 2003, and their plan was trusteed), who are age 55 or older and receiving a pension benefit from PBGC, as of the first day of the month. For additional application information, contact the PBGC at 800-400-7242 or http://www.pbgc.gov. The PBGC website includes a section of frequently asked questions on HCTC: http://www.pbgc.gov/workers-retirees/benefits-information/content/page13692.html#4.
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1-860-263-6060
Published by the Connecticut Department of Labor, Project Management Office
