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Who is eligible to receive the Health Coverage Tax Credit (HCTC)?

Two kinds of people are eligible for the Health Coverage Tax Credit (HCTC) -- those receiving Trade Adjustment Assistance (TAA) benefits or Pension Benefit Guaranty Corporation (PBGC) benefits.

TAA is a federal program to help workers who lose their jobs or whose hours of work and wages are reduced as a result of increased imports. TAA offers a variety of benefits and reemployment services -- including training, job search and relocation allowances, income support and other services - to help unemployed workers prepare for and obtain suitable employment. The Employment and Training Administration of the U.S. Department of Labor administers the TAA program. States serve as agents to the Labor Department in administering the TAA program.

To be eligible for the HCTC as a TAA beneficiary in any month, you must be an eligible TAA recipient. This means you must be receiving a trade readjustment allowance under the Trade Act of 1974 at any time during the month. If you would be eligible for such a trade readjustment allowance except that you have not exhausted your regular unemployment insurance benefits, you can qualify for the health insurance tax credit. People receiving benefits under the Alternative Trade Adjustment Assistance Program (established under section 246 of the Trade Act of 1974) are also eligible for assistance. All TAA recipients remain eligible for the tax credit for one month after the end of the month that their eligibility for TAA status ceases.

People who are receiving retirement benefit payments from the Federal Pension Benefit Guaranty Corporation (PBGC) and who are 55 or older are also eligible to claim the HCTC.

In addition to receiving TAA or PBGC benefits, to be eligible for the HCTC, you must not be imprisoned, and you must not be covered under other health insurance, such as Medicare, Medicaid, or your spouse's employer-sponsored health plan. (However, if your spouse's employer pays less than half of your premium for group health coverage, you can claim the HCTC for your share of the employer-sponsored coverage.

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Important: This content reflects information from various individuals and organizations and may offer alternative or opposing points of view. It should not be used for medical advice, diagnosis or treatment. As always, you should consult with your healthcare provider about your specific health needs.