Tomorrow, the IRS will begin processing tax year 2014 amended returns for taxpayers who are eligible to claim the Health Coverage Tax Credit for 2014.
This affects taxpayers who are for eligible trade adjustment assistance, alternative TAA and reemployment TAA recipients, Pension Benefit Guaranty Corp. pension payees or qualifying family members.
Changes to the HCTC for taxpayers for 2014 include:
- Taxpayers must make an election to claim the HCTC for a month during which they were eligible for the HCTC. Once they elect to claim the HCTC, they can’t claim the Premium Tax Credit for the same coverage in that month or in any subsequent months during the year in which they are eligible to claim the HCTC. If they elect to claim the HCTC for eligible coverage for which they previously claimed the PTC on Form 8962, they must correct the PTC they previously claimed when they amend their tax return.
- They may claim the HCTC for all qualified health plans offered through a Health Insurance Marketplace in addition to all plans that were previously qualified.
- They no longer have to be enrolled in non-group (individual) coverage for at least 30 days before they became eligible for the HCTC in order for their coverage to be qualified health insurance for the HCTC.
To claim the HCTC for 2014, a taxpayer must first file or have filed an original 2014 federal income tax return without claiming the HCTC. Form 1040X (https://www.irs.gov/pub/irs-prior/f1040x--2014.pdf) amends an original 2014 return to claim the HCTC using Form 8885, “Health Coverage Tax Credit.” Among the instructions: “Write ‘HCTC’ in large, bold letters at the top of the first page of the 1040X.”
Visit the HTCTC page on IRS.gov for more information.
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