Form 1099-H: Health Coverage Tax Credit (HCTC) Advance Payments 2024

What the Form Is For

Form 1099-H is an information return that reports advance payments made under the Health Coverage Tax Credit (HCTC) program. Think of it as a receipt showing that the government paid part of your health insurance premiums directly to your insurance company on your behalf.

Important Note:
The HCTC program expired on December 31, 2021, and Form 8885 (used to claim the yearly credit) has been discontinued since tax year 2022. However, Form 1099-H may still be issued for reconciliation purposes if there were any advance payments made in prior years that need correction or if you're dealing with a late filing situation from earlier tax years.

If you received advance payments through this program (primarily available from 2002–2021), the HCTC paid up to 72.5% of qualified health insurance premiums for eligible individuals. The program was designed to help specific groups afford health coverage:

Eligible Trade Adjustment Assistance (TAA) recipients – Workers who lost jobs due to foreign trade
Alternative TAA (ATAA) or Reemployment TAA (RTAA) recipients – Workers age 50+ with hard-to-transfer skills who found lower-paying jobs
Pension Benefit Guaranty Corporation (PBGC) payees – Individuals age 55+ whose pension plans were taken over by the PBGC

Source: IRS.gov - About Form 1099-H

When You’d Use It (Late/Amended Filings)

You’ll receive or need to file Form 1099-H in specific situations:

If You’re the Recipient

You receive Form 1099-H from the IRS HCTC Program (or your insurance provider) if advance payments were made on your behalf during the calendar year. You should receive this form by early February following the tax year. Keep this form for your records – do not attach it to your tax return.

The form shows you how much the government paid toward your premiums, which affects your ability to claim additional credits.

If You’re Filing Late or Amended Returns

If you’re dealing with tax years 2013–2021 and need to file a late or amended return:

Use the form to reconcile any advance payments you received
You cannot claim the yearly HCTC for months when you received advance payments shown on Form 1099-H
If you need to file an amended return for those years, you may need to obtain Form 8885 (Health Coverage Tax Credit) for prior years

For Tax Year 2024

Since the HCTC expired in 2021, Form 1099-H would only be relevant if you’re addressing issues from earlier years or if there’s a special circumstance requiring late reporting.

Source: IRS.gov - Instructions for Form 1099-H

Key Rules for 2024

Current Status

The HCTC program is no longer active as of January 1, 2022
Form 1099-H reporting continues only for corrections or late filings from prior tax years (2002–2021)
The companion form (Form 8885) has been discontinued starting with tax year 2022

Historical Requirements

These apply for understanding past filings:

Who Must File

Health insurance providers who received HCTC advance payments on behalf of eligible individuals must file Form 1099-H. However, the IRS HCTC Program typically handled this filing automatically unless the provider elected to file independently.

Filing Deadlines (When Program Was Active)

Furnish to recipients: January 31
File with IRS: February 28 (paper) or March 31 (electronic)

Maximum Credit Amount

The advance payment couldn’t exceed 72.5% of the total qualified health insurance premium.

Qualified Health Plans Included

COBRA coverage (if you paid more than 50% of costs)
State-qualified health plans
Spousal employer coverage (with restrictions)
Certain individual/non-group plans
Voluntary Employee Beneficiary Association (VEBA) plans from employer bankruptcy

Disqualifying Coverage

You couldn’t receive HCTC if enrolled in Medicare, Medicaid, CHIP, FEHBP, TRICARE, or if imprisoned.

Source: IRS.gov - HCTC FAQs

Step-by-Step Overview (High Level)

For Recipients (Understanding Your Form 1099-H)

Step 1: Receive the Form

By early February, you should receive Form 1099-H from the IRS HCTC Program if advance payments were made for you during the previous calendar year.

Step 2: Review the Information

Box 1: Total HCTC advance payments made on your behalf for the year
Box 2: Number of months you received HCTC payments (maximum 12)
Boxes 3–14: Monthly breakdown showing advance payment amounts for each month

Step 3: Verify Accuracy

Check that the amounts match your insurance records and the months you were enrolled in qualified coverage.

Step 4: Use for Tax Filing (for years 2013–2021)

If filing for those years, you could not claim the yearly credit for months showing advance payments on Form 1099-H. The form helped you complete Form 8885 to reconcile your credit.

Step 5: Keep for Records

Store the form with your tax records. Do not mail it with your return.

For Insurance Providers (Historical Filing Process)

Step 1: Determine Filing Responsibility

Determine if you need to file independently (most providers allowed the IRS HCTC Program to file on their behalf).

Step 2: Gather Data

Collect monthly payment data for each recipient.

Step 3: Complete the Form

Fill in recipient information, total annual payment, number of months, and monthly breakdowns.

Step 4: File and Furnish Copies

Submit to the IRS and furnish copies to recipients by the deadlines.

Step 5: Retain Records

Keep copies for at least three years.

Source: IRS.gov - Form 1099-H PDF

Common Mistakes and How to Avoid Them

Mistake #1: Attaching Form 1099-H to Your Tax Return

Why it’s wrong: Form 1099-H is an informational document, not a filing requirement.
How to avoid: Keep Form 1099-H for your records only.

Mistake #2: Claiming the Yearly Credit for Months with Advance Payments

Why it’s wrong: You can’t “double-dip.”
How to avoid: When completing Form 8885 (for prior years), exclude months shown on your Form 1099-H.

Mistake #3: Not Reporting Changes in Circumstances

Why it’s wrong: Changes can cause excess payments or ineligibility.
How to avoid: Report changes in eligibility, income, or coverage promptly.

Mistake #4: Incorrect Recipient Information

Why it’s wrong: Mismatched SSNs or names cause delays.
How to avoid: Verify TINs before filing and notify providers of updates.

Mistake #5: Missing the Premium Payment Deadline

Why it’s wrong: You must pay your share on time.
How to avoid: Pay by your tax return due date and keep proof.

Mistake #6: Confusing Form 1099-H with Form 1095-A

Why it’s wrong: These are for different programs.
How to avoid: Check your coverage type—HCTC vs. Marketplace.

Mistake #7: Not Keeping Supporting Documentation

Why it’s wrong: You’ll need proof if the IRS questions your filing.
How to avoid: Retain all insurance and payment records for at least three years.

What Happens After You File

For Recipients

Immediate Processing

When you file your return (for applicable prior years), the IRS processes Form 8885 with your return. The Form 1099-H information is already in the system.

Matching Process

The IRS matches HCTC advance payments on your Form 1099-H with your Form 8885 to verify:

No double-claimed credits
Accurate premium amounts
Eligibility compliance

Potential Outcomes

Everything Matches: Standard refund timeline applies.
Discrepancies Found: You may receive a CP2000 notice or refund adjustment.
Excess Advance Payments: Repayment may be required, with income-based limits ($600–$6,000).

For Insurance Providers

Post-Filing Follow-Up

Providers may receive:

Penalty notices for late or inaccurate forms
CP2100/CP2100A notices for mismatched TINs
Correction requests for errors

Long-Term Considerations

Keep all copies and supporting documentation for at least three years after filing.

Source: IRS.gov - General Instructions for Information Returns

Frequently Asked Questions (FAQs)

Q1: I received Form 1099-H in 2024. Does this mean the HCTC program is active again?

A: No. The program expired in 2021. You likely received a corrected or late-issued form.

Q2: Can I still claim the Health Coverage Tax Credit for 2024?

A: No. It’s not available after 2021. Use the Premium Tax Credit (PTC) instead.

Q3: I lost my Form 1099-H. How do I get a replacement?

A: Contact the issuer listed on the form or call the IRS Healthcare Hotline at 1-800-919-0452.

Q4: Do I need to report Form 1099-H amounts as income?

A: No. These payments aren’t taxable. They represent government-paid premiums on your behalf.

Q5: What’s the difference between Form 1099-H and Form 1095-A?

Form 1099-H: HCTC program (ended 2021)
Form 1095-A: Premium Tax Credit (current Marketplace program)

Q6: I was a PBGC pensioner. Am I still eligible for HCTC?

A: No. The program ended for all groups in 2021. Explore PTC options at HealthCare.gov.

Q7: My Form 1099-H has errors. What should I do?

A: Contact the issuer immediately for a corrected form before filing your return.

Additional Resources

IRS Form 1099-H Information: IRS.gov/Form1099H
Current Health Coverage Tax Help: HealthCare.gov
Premium Tax Credit Information: IRS.gov/Affordable-Care-Act
IRS Healthcare Hotline: 1-800-919-0452
Publication 974 (Premium Tax Credit): IRS.gov/Pub974

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