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If at the end of the year youve taken more premium tax credit in advance than youre due based on your final income, youll have to pay back the excess when you file your federal tax return. If youve taken less than you qualify for, youll get the difference back.
Who is eligible for the HCTC? A Pension Benefit Guaranty Corporation (PBGC) payee who is 55 years old or older. An eligible Trade Adjustment Assistance (TAA), Alternative TAA (ATAA), or Reemployment (RTAA) RTAA recipient.
Claiming the HCTC requires that you are an eligible recipient of a qualifying trade adjustment assistance program, currently on an approved break from such training or receiving unemployment insurance in lieu of training. You may also qualify if you are 55 or older and a PBGC payee.
You should use IRS Form 8885 to claim the HCTC on your federal tax return. This form helps you determine if you are eligible and provides instructions for claiming the credit. You should complete and submit it along with your federal tax return. If you do not have IRS Form 8885, call the IRS at 1-800-TAX-FORM.
To be eligible for the premium tax credit, your household income must be at least 100 percent and, for years other than 2021 and 2022, no more than 400 percent of the federal poverty line for your family size, although there are two exceptions for individuals with household income below 100 percent of the applicable
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HCTC is a Federal tax credit program administered by the Internal Revenue Service (IRS). HCTC helps cover the cost of health insurance while you participate in the TAA program to make your health insurance premiums more affordable.
Schedule C (Form 8995-A) offsets your trade or business that generated a qualified business loss against the QBI from your other trades or businesses. The qualified business loss must be apportioned among all your trades or businesses with QBI in proportion to their QBI.

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