The health coverage tax credit (HCTC) is an IRS tax credit for 72.5% of health care insurance premiums, which may apply to certain individuals who are 55–65 years of age and are receiving benefits from the Pension Benefit Guaranty Corporation PBGC. It was scheduled to expire at the end of 2019 but since President Donald Trump signed the Taxpayer Certainty and Disaster Tax Relief Act of 2019 (the Act) into law it has been extended for all coverage months beginning in 2020. This means individuals who are eligible can receive a tax credit to offset the cost of their monthly health insurance premiums for 2020 if they have qualified health coverage for the HCTC.
Eligibility for the HCTC is restricted to the following groups of individuals:
- Individuals eligible for Trade Adjustment Assistance (TAA) allowances because of a qualifying job loss
- Individuals between 55 and 64 years old whose defined-benefit pension plans were taken over by the Pension Benefit Guaranty Corporation (PBGC)
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