Health Care

Health Care

How do health care reform and taxes connect? The Affordable Care Act is single largest change to the tax code in two decades. Find help navigating the complexities of the new health care legislation, Medicare, Medicaid and other medical deductions.

Posts: 1
Registered: ‎02-03-2018
Accepted Solution

Do I Qualify for Health Coverage Tax Credit (HCTC) Form 8885

Using HR Block Deluxe 2017 software: Health Coverage Credit Area: Have to manually fill out form 8885:
I'm an active TAA recipient and my wife and I had health coverage all year through the Marketplace. I also received premium tax credits to subsidize the payments throughout the year, and made monthly payments.


Health Coverage Tax Credit (HCTC) Form 8885 Instructions


Page 3 of 8885 Instructions (IRS Link above)--> "Participants in a Health Insurance Marketplace"

--"A qualified health plan offered through a Marketplace isn’t qualified health insurance coverage for the HCTC in 2017."

Question: I had health insurance through the marketplace. Does this mean I am disqualified from claiming this credit because of this statement?
Form 8885 Part I; Question 1: I'm certain about every requirement listed except the 2nd bullet point: "You were covered by HCTC-qualified health insurance coverage" - I can't figure out if marketplace health insurance is excluded in being able to claim this credit.
Health Coverage Tax Credit (HCTC) Form 8885
Next sentence from page 3 of instructions:
--"And, you can’t take the premium tax credit (PTC) for any months checked on line 1."
I think I already receive this credit throughout the year in advance to pay for a portion of my health insurance. They pay it directly to my insurer. I would be able to check all the boxes on line 1 for every month, because we had coverage all year.
Thanks for your time!
Associate (Pioneer)
Posts: 37
Registered: ‎01-08-2018

Re: Do I Qualify for Health Coverage Tax Credit (HCTC) Form 8885

[ Edited ]

Hello peoplearebusy,


Welcome to H&R Block Community.


Since you have a insurance through the MarketPlace and may have already received part of your premium tax credit, you need to fill out a Form 8962 instead of the form 8885. If you are using the either of the H&R Block program, the interview section will assist you in filing out this form. You will need a copy of your 1095-A to complete this section.


I hope this helps you out! Please ask if you have any further questions.


Lacy J

Tax Research Specialist