Form 1099-H: Health Coverage Tax Credit Advance Payments

What Is Form 1099-H: Health Coverage Tax Credit Advance Payments?

Form 1099-H: Health Coverage Tax Credit Advance Payments is an Internal Revenue Service (IRS) form used to report advance payments of qualified health insurance payments made to eligible taxpayers and members of their families from the Department of the Treasury. Payments benefit those eligible for trade adjustment assistance (TAA), alternative TAA (ATAA), reemployment TAA (RTAA), or Pension Benefit Guaranty Corporation (PBGC) payees and qualifying family members. Filed by health insurance providers, a copy of the form is sent to the IRS and another to the taxpayer. The HCTC program ended in 2021.

Key Takeaways

  • Form 1099-H is a federal income tax form required by the IRS.
  • The form is filed by health insurance providers that receive advance payments on behalf of the taxpayer as a recipient of TAA, ATAA, RTAA, or PBGC.
  • TAA, ATAA, RTAA, and PBGC benefits recipients may be eligible for the health coverage tax credit, which can help lower health insurance premiums.
  • If you receive the form, keep your copy but enter the information on Form 8885 to include with their annual tax returns.
  • The HCTC program expired on Dec. 31, 2021.

Who Can File Form 1099-H: Health Coverage Tax Credit Advance Payments?

Advance payments are part of the HCTC, a federal tax credit helping individuals and families significantly lower their monthly health insurance premiums. The following represent some of the eligibility criteria for the program:

  • 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 PBGC

The program expired on Dec. 31, 2021.

Qualified providers of health insurance coverage that received advance payments of the HCTC from the Department of the Treasury on behalf of eligible recipients used Form 1099-H to report the payments to the IRS. These entities file Form 1099-H whenever a taxpayer's health insurance provider accepted advanced payments for any of the reasons noted above.

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. 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 (TINs). 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.

As a result of the American Rescue Plan of 2021, all taxpayers with insurance purchased through the ACA Marketplace were eligible for the HCTC. Filers were previously ineligible if their income exceeded 400% of the federal poverty line.

How to File Form 1099-H: Health Coverage Tax Credit Advance Payments

If you received 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. You may need to report some of the information from Form 1099-H on IRS Form 8885. The latter is then attached and sent with Form 1040 or 1040-SR when you file your annual tax return. Keep in mind that you don’t need to submit a copy of Form 1099-H with your return. You should, however, keep your copy with your tax records.

2022 1099-H
2022 1099-H.

Download Form 1099-H: Health Coverage Tax Credit Advance Payments Here

All copies of Form 1099-H are available on the IRS website. You can be downloaded the current version by clicking on this link.

Advanced payments are not the same as the advanced premium tax credit that some people receive through the Health Insurance Marketplace.

Special Considerations for Form 1099-H: Health Coverage Tax Credit Advance Payments

You were not eligible for the HCTC if you:

  • Could be claimed as a dependent on someone else's federal income tax return
  • Were enrolled in Medicare, Medicaid, the Children’s Health Insurance Program (CHIP), or the Federal Employees Health Benefits Program—or were eligible to receive benefits under the U.S. military health system (TRICARE)
  • Were enrolled in an Affordable Care Act (ACA) marketplace insurance plan

As an HCTC participant, you were able to pay part of your health insurance premiums to the HCTC program each month. The HCTC program added the remaining balance and sent the full payment to your health plan. Alternatively, you were able to make full payments to your health plan each month and receive the HCTC as a yearly tax credit.

What Is Form 1099-H Used For?

Form 1099-H is provided to taxpayers by qualified health insurance providers who received advanced payments for coverage on behalf of eligible insured individuals from the Department of the Treasury.

How Do I Report Form 1099-H on My Tax Return?

You may need to report some of the information to the IRS if you receive Form 1099-H. This is done by filling out Form 8885 and attaching it to your Form 1040, 1040-SR, or equivalent form. You do not need to submit Form 1099-H with your tax return but should keep it for your records.

When Should I Receive My Copy of Form 1099-H

Issuers of Form 1099-H should submit copies to taxpayers by January 31. So if you were eligible and benefitted from the HCTC in 2021, you should receive the form by Jan. 31, 2022.

Article Sources

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  1. Internal Revenue Service. "About Form 1099-H, Health Coverage Tax Credit (HCTC) Advance Payments." Accessed Jan. 31, 2022.

  2. Internal Revenue Service. "Enrolling in Advance Monthly Payments of the Health Coverage Tax Credit." Accessed Jan. 31, 2022.

  3. Internal Revenue Service. "Instructions for Form 8885 (2021)." Accessed Jan. 31, 2022.

  4. Congressional Research Service. "The Health Coverage Tax Credit (HCTC): In Brief," Page 1. Accessed Jan. 31, 2022.

  5. Internal Revenue Service. "Form 1099-H (Rev. January 2022)," Accessed Jan. 31, 2022.

  6. Internal Revenue Service. "Form 1099-H (Rev. January 2022)," Page 1. Accessed Jan. 31, 2022.

  7. Internal Revenue Service. "Instructions for Form 1099-H." Accessed Jan. 31, 2022.

  8. Internal Revenue Service. "Eligibility for the Premium Tax Credit." Accessed Jan. 31, 2022.

  9. Congress.gov. "American Rescue Plan of 2021." Accessed Jan. 31, 2022.

  10. Internal Revenue Service. "Form 14095," Page 1. Accessed Jan. 31, 2022.

  11. Internal Revenue Service. "Health Coverage Tax Credit." Accessed Jan. 31, 2022.

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