<nobr>Aug 8, 2003</nobr>

IRS Issues Fact Sheet on Health Coverage Tax Credit

The Internal Revenue Service has issued a fact sheet on the Health Coverage Tax Credit (HCTC) created by the Trade Act of 2002, which began August 1. The program assists workers in paying health premiums if a worker’s job is lost due to foreign trade or the worker is 55 or older receiving PBGC benefits. For those eligible, the HCTC can be used to pay 65% of the cost of eligible health insurance, provided that the health plan is either automatically qualified or state-qualified.

To receive the HCTC an individual must be enrolled in a qualified health insurance plan. Some individuals may already be enrolled in a form of insurance that is automatically qualified, such as COBRA continuation coverage, certain spousal coverage, or in some cases individual (non-group) health insurance coverage. Recipients can receive their benefits either in advance - to help pay health plan premiums as they come due - or in a lump sum when they file their federal tax returns.

Websites:

Click here for more information.

Back to Previous Page