Search Help Topics:

The Health Coverage Tax Credit (HCTC) is a tax credit that pays 72.5% of qualified health insurance premiums for eligible individuals and their families. The HCTC acts as partial reimbursement for premiums paid for qualified health insurance coverage and can now be claimed for qualified coverage through 2020.

For more information refer to the IRS Health Coverage Tax Credit website.

You must complete and mail Form 13441-A Health Coverage Tax Credit (HCTC) Monthly Registration and Update, with all required supporting documents to the IRS to enroll.

You must follow special instructions to claim the HCTC for 2020 when you file your federal income tax return in 2021. You will file Form 8885 Health Coverage Tax Credit, and attach documentation that shows that you were an eligible individual for the HCTC and that the premiums claimed for your 2020 coverage were paid.

If you electronically file your Federal income tax return, you must submit the required documents with a Form 8453 U.S. Individual Income Tax Transmittal for an IRS e-file Return.

To submit with Form 8453:

  1. From within your TaxAct return (Online or Desktop), click Federal. On smaller devices, click in the upper left-hand corner, then click Federal.
  2. Click Other Credits in the Federal Quick Q&A Topics menu to expand, click Other credits to expand, then click Health coverage tax credit - Taxpayer/Spouse.
  3. The program will proceed with the interview questions for you to enter or review the appropriate information.

Note that any link in the information above is updated each year automatically and will take you to the most recent version of the document at the time it is accessed.


Was this helpful to you?