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1040-US: Claim both Health Coverage Tax Credit and Premium Tax Credit

Use the
8885
 screen in the Health Care folder to complete Form 8885, Health Care Coverage Tax Credit. Enter
X
 for each month the taxpayer and/or spouse qualify for the Health Coverage Tax Credit. To qualify, the taxpayer and/or spouse must be an eligible TAA, ATAA, RTAA, or PBGC payee or a qualified family member of the recipient, and covered by a qualified health insurance plan where the premiums were paid directly to the health plan, including premiums paid to "U.S. Treasury - HCTC."
Use the
Qualified health insurance payments
 field to calculate Form 8885, line 2. Amounts you enter here are deducted from the total medical expenses you enter in
Medical and dental expenses
 field in the
A
 screen to calculate the allowable itemized deduction for medical expenses. If Form 8962 has allocated policy amounts with another tax family, include only premium amounts allocated to the taxpayer's family.

Claiming the HCTC and PTC

You can't claim the Health Coverage Tax Credit (HCTC, Form 8885) and the Premium Tax Credit (PTC, Form 8962) for the same coverage for the same month.

All premiums qualify for both HCTC and PTC

Enter the premiums paid, including any Advance Premium Tax Credit, in the
Qualified health insurance payments
 field on the
8885
 screen and enter
X
 in the
Claiming HCTC (Form 8885) for all premiums
 field on the
PTC
 screen.

Some premiums qualify for both HCTC and PTC

If only a portion of the premiums in the
1095A
 or
PTC
 screen are included as qualified premiums on Form 8885, enter only the portion of the premiums that aren't HCTC qualified premiums in the
1095A
 or
PTC
 screen. For example, an eligible taxpayer can claim the PTC for January through September and then elect the HCTC for October through December. Enter premiums in the
1095A
 screen for January through September.
If advance payments were made, enter the advance payments for the applicable months in January through December. Enter the total premiums paid for October through December in the
Qualified health insurance payments
 field on the 8885 screen.
note
If you're filing Form 8885, Health Coverage Tax Credit, and Form 8962, Premium Tax Credit, and the taxpayer received excess advance HTCTC payments, then review the Excess Advance HCTC Repayment Worksheet in the instructions for Form 8885 to determine any required adjustment for Form 8885, line 5.

Taxpayer and spouse elect different credits

If there are separate health care policies and (for example) the taxpayer elects HCTC for his coverage and the spouse elects PTC for her separate coverage, then the repayment limitation would apply to the spouse’s coverage. Enter premiums, SLCSP premiums, and advance payments for the spouse in the
1095A
 screen.
Enter only the advance payments for the taxpayer in the
1095A
 screen. The IRS hasn't provided any guidance on how this repayment limitation should be calculated if both the taxpayer and spouse received advance payments of the Premium Tax Credit. UltraTax CS will apply the limitation from the Form 8962 instructions. If you need to change the limitation, use the
Repayment limitation (Force)
 field in the
PTC
 screen.

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