The Health Coverage Tax Credit (HCTC) is a program that can help pay for nearly two-thirds of eligible individuals’ health plan premiums. To be eligible, taxpayers must be enrolled in a qualified health plan, which includes COBRA, state-qualified health plans, or if the taxpayer is enrolled under a spouse’s work plan and pays more than 50 percent of the total health care costs.
The HCTC only assists three groups: people who receive a trade readjustment allowance under the Trade Adjustment Assistance Program, workers who are at least 50 years of age who receive a certain percentage of the wage differential between the wages of their previous, adversely-affected employment and their new full-time employment, and people who are at least 55 years old and receive pension benefits from the Pension Benefit Guaranty Corporation.
The HCTC may also cover your family. You can choose to receive the credit either monthly or when you file your yearly tax return.