What Is Form 1099-H: Health Coverage Tax Credit Advance Payments?
Form 1099-H, Health Coverage Tax Credit Advance Payments, is one of a series of Internal Revenue Service (IRS) 1099 forms used to report various non-employee payments and transactions. Form 1099-H is used to report advance payments of qualified health insurance payments for the benefit of eligible trade adjustment assistance (TAA), alternative TAA (ATAA), reemployment TAA (RTAA), or Pension Benefit Guaranty Corporation (PBGC) payees and their qualifying family members.
- Recipients of TAA, ATAA, RTAA, and PBGC benefits may be eligible for the health coverage tax credit (HCTC), which can help lower health insurance premiums.
- You will receive a 1099-H form if your health insurance provider received advance payments on your behalf as a recipient of TAA, ATAA, RTAA, or PBGC.
- The HCTC program is set to expire at midnight on Dec. 31, 2021.
Who Needs to File Form 1099-H: Health Coverage Tax Credit Advance Payments?
You will receive Form 1099-H if your health insurance provider accepted advance payments from the Department of the Treasury on your behalf as a recipient of TAA, ATAA, RTAA, or PBGC benefits. The advance payments help you pay your monthly health insurance premiums. Note that this is not the same as the advanced premium tax credit that some people receive through the Health Insurance Marketplace.
As a result of the American Rescue Plan of 2021, all taxpayers with insurance bought on the ACA Marketplace are now eligible for the healthcare coverage tax credit; previously, filers were ineligible if their income exceeded 400% of the federal poverty line.
What Is Form 1099-H Used for?
Providers of qualified health insurance coverage that receive advance payments of the health coverage tax credit (HCTC) from the Department of the Treasury on behalf of eligible recipients use Form 1099-H to report the payments to the Internal Revenue Service (IRS). If you are an HCTC recipient, you’ll get a copy of Form 1099-H.
The advance payments are part of the HCTC, a federal tax credit that can help individuals and families significantly lower their monthly health insurance premiums. You may be eligible for the HCTC if you are:
- Eligible for TAA allowances due to a qualifying job loss
- An ATAA or RTAA recipient
- Between age 55 and 64 and your defined-benefit pension plan was taken over by the Pension Benefit Guaranty Corporation (PBGC)
You are not eligible for the HCTC if you:
- Can be claimed as a dependent on someone else's federal income tax return
- Are enrolled in Medicare, Medicaid, the Children’s Health Insurance Program (CHIP), or the Federal Employees Health Benefits Program—or are eligible to receive benefits under the U.S. military health system (TRICARE)
- Are enrolled in an Affordable Care Act (ACA) marketplace insurance plan
As an HCTC participant, you can pay part of your health insurance premiums to the HCTC program each month. The HCTC program will add the remaining balance and send the full payment to your health plan. Alternatively, you can make full payments to your health plan each month, then receive the HCTC as a yearly tax credit. Currently, the HCTC program is set to expire as of midnight on Dec. 31, 2021.
You can have your HCTC benefits paid directly to your health insurance provider, or you can receive them as a yearly tax credit.
How to Read Form 1099-H: Health Coverage Tax Credit Advance Payments
The left side of the form includes details about the "Issuer/Provider" (your health insurance company) and the "Recipient" (you, the taxpayer), including names, addresses, and tax identification numbers (TIN). The right side of the form has 14 boxes.
- Box 1: Amount of HCTC advance payments. Box 1 shows the total amount of HCTC advance payments of qualified health insurance costs that were made on your behalf. The amount can’t be more than 72.5% of your total health insurance premiums for the year.
- Box 2: No. of mos. of HCTC advance payments and reimbursement credits paid to you. Box 2 shows the total number of months you received HCTC payments.
- Boxes 3 through 14. Boxes 3 through 14 show the amount of HCTC advance payments paid for you for each month of the year. The total of the amounts shown in these boxes should equal the amount shown in Box 1.
All copies of Form 1099-H are available on the IRS website.
Where to Get Form 1099-H
If you receive health coverage tax credit advance payments to help you pay for your health insurance premiums, your insurance provider will send you a copy of Form 1099-H.
Where to Mail Form 1099-H
Nowhere, if you are the recipient. There are three copies of Form 1099-H. The issuer sends Copy A to the IRS, Copy B to the taxpayer, and retains Copy C. You may need to report some of the information from Form 1099-H on your income tax return, but you don’t need to submit a copy with your return. You should, however, keep your copy with your tax records.