Form 1099-H (2017) Tax Year
Purpose of Form 1099-H
Form 1099-H reports Health Coverage Tax Credit advance payments made on behalf of eligible trade adjustment assistance recipients, Alternative TAA participants, Reemployment TAA recipients, or PBGC pension payees during 2017. You must track monthly payment amounts and reconcile recipient information on Form 8885 for all individuals who received these advance payments.
Required Reference Materials
You must obtain the 2017 General Instructions for Certain Information Returns and the 2017 Instructions for Form 1099-H before preparing this form. The IRS allows you to fill out Form 1099-H online and send Copy B to recipients.
For filing with the IRS, you must follow electronic filing procedures if you submit 250 or more forms. If you file on paper due to low recipient volume, you may print and send black-and-white Copy A from the IRS for this form only.
Recipient Information Requirements
Collect recipient identification numbers, which must be valid Social Security Numbers or Individual Taxpayer Identification Numbers. You must verify full legal names and complete mailing addresses for all individuals who received any HCTC advance payment during calendar year 2017.
Box 1: Total HCTC Advance Payments
Enter the total amount of HCTC advance payments in Box 1 for each recipient. The amount must reflect only qualified health insurance premiums paid directly to the provider on the recipient's behalf. The amount received in 2017 cannot exceed 72.5 percent of the total health insurance premium for the individual.
Box 2: Number of Months
Calculate and enter in Box 2 the total number of months during 2017 in which HCTC advance payments were made to or on behalf of each recipient. This number cannot exceed 12 months for the calendar year.
Boxes 3 Through 14: Monthly Payment Breakdown
Enter monthly payment amounts in Boxes 3 through 14, which correspond to January through December 2017. You may receive these payments before the month for which they are paid, so verify the payment period before entering amounts.
Confirm that the Box 1 total equals the sum of Boxes 3 through 14 for each recipient record to maintain reporting accuracy. Enter each amount in the correct box corresponding to the coverage month to ensure proper reconciliation when recipients file their tax returns.
Furnishing Statements to Recipients
You must furnish Copy B to each recipient by January 31, 2018. Retain records documenting payment dates and provider names for at least three years from the due date of the returns.
These records support your reporting obligations and provide documentation if the IRS requests verification of the amounts reported. Recipients use the information on Copy B to reconcile their advance payments against the actual credit claimed on Form 8885 when filing their federal tax returns.
Filing Copy A With the IRS
File Copy A with the IRS by February 28, 2018, if you submit paper forms. You may file electronically via the FIRE system using Publication 1220 specifications, which extends your deadline to April 2, 2018.
Electronic filing becomes mandatory if you file 250 or more forms of any single type. You must submit each form type separately with its own Form 1096 transmittal document when filing on paper.
Identification and Address Information
Include the issuer's or provider's federal identification number and complete address on all copies. Mark forms as VOID if correcting a prior filing or CORRECTED if amending a current-year record.
The agent or transmitter may sign Form 1096 on behalf of the payer if authorized under a valid agency agreement. This authorization does not relieve the payer of liability for penalties related to incorrect, incomplete, or untimely filing.
Reconciliation Requirements for 2017
HCTC recipients must reconcile advance payments against the actual Form 8885 credit claimed on Form 1040, Form 1040NR, Form 1040-SS, or Form 1040-PR to avoid recapture of excess advances. Recipients who received more in advance payments than their eligible credit amount must repay the excess when filing their tax returns.
The ACA shared responsibility period remained in effect through 2017, requiring recipients to maintain qualifying health coverage throughout eligible months. Recipients must report their coverage and HCTC advance payments accurately to comply with federal tax requirements and avoid penalties.
Electronic Filing Specifications
The FIRE system requires filers to follow specifications contained in Publication 1220 for 2017 data validation requirements. You may fill out Form 1099-H online and print copies for recipients.
Electronic submissions must conform to the technical requirements and file formats specified in Publication 1220 to ensure proper processing by IRS systems. Filers must validate data accuracy before transmission to prevent erroneous notices and processing delays.
Form Ordering and Submission
You cannot file Copy A of Forms 1097, 1098, 1099, 3921, 3922, or 5498 that you print from the IRS for most information returns, because the IRS processes paper forms using optical character recognition equipment. Form 1099-H represents an exception for low-volume filers who may print and submit black-and-white Copy A.
All other filers must order official scannable forms directly from the IRS or file electronically through the FIRE system to avoid processing delays and potential penalties. Downloaded forms from other sources lack the scannable red ink required for optical character recognition equipment processing.
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This checklist is for educational purposes only and does not constitute tax or legal advice. Always review official IRS instructions and consult a qualified professional for guidance.
