Form 1099-G: Certain Government Payments (2010 Tax Year) – A Complete Guide

What this form shows (and why it matters)

Form 1099-H reports the advance monthly HCTC payments the government sent directly to your health insurer on your behalf in 2010. You didn’t receive this cash; it reduced what you had to pay for premiums during the year. For 2010, the HCTC program generally covered up to 80% of qualified premiums for eligible individuals (with you paying the rest). Every CRS Report

Key boxes:

• Box 1 — Total advance HCTC paid for the year (already received as a benefit; not additional credit).
• Box 2 — Number of months you received advance payments.
• Boxes 3–14 — Month-by-month advance payment amounts (these should add up to Box 1). The IRS’s 1099-H instructions describe these boxes and emphasize not double-claiming advances. IRS

Practical takeaway: Don’t claim Box 1 again as a new credit. You already got that benefit via advance payments. Use Form 8885 to reconcile and, if applicable, claim only any remaining credit for premiums you personally paid out-of-pocket. IRS+1

Who was eligible in 2010 (snapshot)

In 2010, eligibility largely covered:

• Workers eligible for Trade Adjustment Assistance (TAA/RTAA/ATAA), and
• Certain retirees (age 55–65) receiving pensions paid by the Pension Benefit Guaranty Corporation (PBGC).
  The credit was advanceable (monthly) and refundable (you could receive it even with little/no tax liability). Every CRS Report

Filing timelines (late or amended returns)

• Agencies were to furnish 1099-H by Jan 31, 2011. Use it when filing your 2010 return (originally due Apr 15, 2011).
• Late filing / amending: If you’re filing now or need to correct 2010, include Form 8885 with your 2010 return to reconcile advance payments and claim any extra credit for amounts you paid yourself. Do not attach the 1099-H; keep it with your records. IRS

2010 rules you shouldn’t miss

• 80% rate in 2010: The program’s temporary enhancement covered up to 80% of qualified premiums (the balance was your share). Every CRS Report
• No double-dipping: You cannot both take the HCTC advance (Box 1) and claim that same amount again as a credit or as a medical expense deduction. IRS materials instruct you to exclude 1099-H advance payments from Schedule A medical expenses and to use 8885 only for amounts you actually paid. IRS
• Month-by-month eligibility: You had to be eligible each month to receive that month’s advance; Boxes 3–14 reflect the months paid. IRS
• COBRA premium assistance overlap: You could not claim HCTC for months you received the separate COBRA premium assistance subsidy; choose one or the other for the same month. (IRS HCTC guidance and contemporaneous instructions reflect this non-overlap rule.) IRS

How to handle Form 1099-H (quick steps)

1. Check the form: Box 1 (total), Box 2 (months), and Boxes 3–14 (monthly details). The monthly boxes should sum to Box 1. If not, contact the issuer for a correction. IRS
2. Gather records: Premium invoices, proof of any out-of-pocket payments, and HCTC correspondence.
3. Complete Form 8885 (2010):
   • List the months you were eligible and premiums you paid yourself.
   • Reconcile with the advance amounts shown on 1099-H.
   • Claim only any additional credit still due for your out-of-pocket premiums. IRS
4. Adjust Schedule A (if you itemize): Exclude any premiums paid via HCTC advances from your medical deduction. Only include what you paid.
5. File your 2010 return (or amended return) with Form 8885 attached. Keep Form 1099-H with your records. IRS

Frequent mistakes (and easy fixes)

• Claiming the advance again: Treat Box 1 as already received. Don’t re-claim it on 8885. IRS
• Including advances in medical deductions: Schedule A must exclude the Box 1 amount.
• Mixing payment types: Only direct premiums you paid to the insurer (not payments you sent to the HCTC program that were already subsidized) may generate a remaining credit on 8885. IRS
• Ignoring month math: Box 2 should match the count of months with dollar amounts in Boxes 3–14; those monthly boxes must total Box 1. IRS
• COBRA overlap: Don’t claim HCTC for months you also received COBRA premium assistance. IRS

After you file

• IRS matching: The IRS matches your 8885 reconciliation to 1099-H data; smooth matches mean normal processing. IRS
• Extra credit: If you paid significant amounts out-of-pocket beyond the advances, 8885 may yield an additional refundable credit. Every CRS Report
• Repayment risk: If you received advances for months you weren’t actually eligible, you may need to repay that portion. IRS

Quick FAQs

Is 1099-H income?
No. It reports advance credit payments already applied to your premiums. You reconcile on Form 8885; you don’t add Box 1 to income. IRS

I also paid some premiums out-of-pocket. Can I get more credit?
Yes—use Form 8885 to claim any additional HCTC for months you were eligible and paid qualifying premiums yourself. IRS

Can I deduct HCTC-paid premiums on Schedule A?
No. Exclude the Box 1 amount from medical expenses; only deduct what you paid.

What if my 1099-H numbers look wrong?
Ask the issuer for a corrected form before filing; the IRS 1099-H instructions specify the box logic and totals. IRS

Why does everyone keep saying “80%” for 2010?
Because the temporary enhancement in effect then set the HCTC share at up to 80% of qualified premiums for that period. Every CRS Report

Sources

• IRS Instructions for Form 1099-H (box descriptions; reconciliation / no double-claiming). IRS
• IRS Form 8885 instructions (reconcile advances; claim only amounts you paid; filing mechanics). IRS
• CRS report on the HCTC (program overview; 2010 80% rate; eligibility; refundable/advanceable nature). Every CRS Report
• IRS Publication 502 (medical expenses) guidance to exclude HCTC advance payments from Schedule A medical deductions.

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