HCTC: Information for Yearly Filers

http://www.irs.gov/individuals/article/0,,id=185770,00.html

HCTC: Information for Yearly Filers

You can claim the yearly HCTC on your federal tax return for months in which you met all HCTC eligibility requirements and paid your premiums directly to your health plan. How to Claim the Yearly HCTC Make sure you meet all the HCTC Eligibility Requirements Make sure you have a Qualified Health Plan and pay that health plan directly throughout the year Keep the following documents for your records: Records of your payments and other supporting documents to submit with IRS Form 8885 HCTC Program invoices or IRS Form 1099H for those times you claimed the monthly HCTC HCTC Program documents or letters Fill out IRS Form 8885 and include it with all required documents with your federal tax return. For a full listing of all the documents you will need for the yearly HCTC, refer to the instructions found on IRS Form 8885 What Happens After Claiming the Yearly HCTC After the IRS processes your federal tax return, you will receive the HCTC in the form of a refund or as a credit against the taxes you owe. If you do not meet all the eligibility requirements or you submit incomplete documentation to the IRS, you will not receive the 65% tax credit. Caution: if you receive the HCTC and the IRS later determines that you were not eligible to receive the tax credit, you will have to repay the IRS any credit amount you received. Tips for Filing for the Yearly HCTC Please keep in mind the following points when you file for the yearly tax credit: If you are a current monthly HCTC Program participant, but made additional payments directly to your health plan during the tax year while you were eligible for the HCTC, you can claim the yearly HCTC for those payments. Find out more information by visiting the HCTC: Information for Monthly Participants and Yearly Filers page Review the list of HCTC State-Qualified Heath Plans to verify your health plan was qualified for the HCTC during the last tax year Staple IRS Form 8885 to your 1040 series form when you have completed it. If you have additional forms or schedules to attach, attach all forms in sequential order as shown on the upper right-hand corner of each form. You should staple the supporting documentation together with all of your tax schedules and forms You do not need to change anything or attach any forms on your state tax return as a result of claiming the yearly HCTC If you file electronically, you will need IRS Form 8453, U.S. Individual Income Tax Declaration for an IRS e-file Return Review other IRS publications that may help you file for the yearly HCTC: IRS Publication 502, Medical and Dental Expenses IRS Publication 17, Your Federal Income Tax for Individuals IRS Publication 501, Exemptions, Standard Deduction, and Filing Information for questions on your status as a dependent Return to the Information for Individuals page. Return to the HCTC Program home page. Go to the HCTC Quick Links page to view a glossary of terms, FAQs and additional resources.