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Federal input screens

Screen 8885 - Health Coverage Tax Credit

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Months qualifying for the Health Coverage Tax Credit
Enter
X
 for each month the taxpayer and/or spouse qualify for the Health Coverage Tax Credit. If you mark the
All
 field, all 12 months are marked automatically.
note
The Health Coverage Tax Credit (HCTC, Form 8885) and the Premium Tax Credit (PTC, Form 8962) can't be claimed for the same coverage for the same month.
  • If all premiums entered in the 1095A screen and the PTC screen, Shared Policy Allocation, are included in HCTC
    Qualified health insurance payments
     in the 8885 screen, enter
    X
     in the
    Claiming HCTC (Form 8885) for all premiums
     field in the PTC screen.
  • If only a portion of the premiums in the 1095A screen or the 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 screen or the PTC screen.
For example, an eligible taxpayer can claim the PTC for January through September then elect the HCTC for October through December. Enter premiums in the 1095A screen in the months January through September. If advance payments were made, enter the advance payments for the applicable months in January through December. Enter the premiums paid for October through December in the 8885 screen, Qualified health insurance payments.
HCTC Advance Payments received for any months not checked above
Enter the amount of excess advance payments received for those months when the taxpayer or spouse doesn't qualify for the HCTC. The excess advance payments received report on Form 1099-H or Form 14095. This information calculates the repayment of excess Advanced Monthly Payments when not filing Form 8962.
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.
Qualified health insurance payments
Enter the amount of health insurance payments paid for the eligible months that the taxpayer / spouse indicate as qualifying for the Form 8885 Health Insurance Credit. The Health Coverage Tax Credit is equal to 72.5% of insurance payments.
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 for which the premiums were paid directly to the health plan, including premiums paid to "U.S. Treasury - HCTC."
note
  • Insurance payments entered in this field (which are included in Form 8885, line 2) are deducted from the total medical expenses entered in the A screen for purposes of calculating 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. The Health Coverage Tax Credit (HCTC, Form 8885) and the Premium Tax Credit (PTC, Form 8962) can't be claimed for the same coverage for the same month.
Portion of insurance paid...
Enter the portion of the amount entered as Qualified health insurance payments paid from an Archer Medical Savings Account (MSA) or Health Savings Account (HSA). Enter the portion paid for the eligible months indicated. These amounts are subtracted from the health insurance paid with the net amount qualifying for the health insurance credit.

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