Health Coverage Tax Credit (HCTC) Program Toolkit
A federal tax credit that subsidizes the cost of private health insurance coverage is available for certain trade impacted Ohioans. The Department of Treasury and the Internal Revenue Service are responsible for implementing this credit under the Health Coverage Tax Credit (HCTC) Program. The credit is equal to 80 percent of the premium paid by eligible individuals under qualified health insurance. The remaining 20 percent of the premium is paid by the eligible individual. Those deemed eligible may file claims in advance to help pay for the health plan premiums as they become due, or receive a credit on their income tax for any month they were eligible and didn’t receive advance payment.
Claiming the Credit
There are two ways to claim the Health Coverage Tax Credit:
1. Register with the IRS to receive the advance payment of the credit on a monthly basis.
2. Claim the credit when filing a federal tax return.
Groups Eligible to Receive HCTC
Individuals receiving a Trade Readjustment Allowance (TRA).
Individuals who would be eligible for TRA under the Trade Assistance Act (TAA) program, but who have not exhausted state unemployment compensation benefits.
Individuals receiving benefits under the Reemployment Trade Adjustment Assistance (RTAA) program.
HCTC Eligibility Requirements
You must be covered by “qualified” health insurance.
You cannot be claimed as a dependent on another individual’s tax return.
You do not have other specified coverage, including Medicare.
You must not be incarcerated in a federal, state or local prison.
Qualified Health Providers in Ohio
HCTC Customer Contact Center
- Frequently Asked Questions: www.irs.gov/individuals/article/0,,id=109956,00.html#Individuals
If you have other insurance related questions, you can contact the Ohio Department of Insurance, Consumer Services Division at 1-800-686-1526.