Instructions For Form 8885 - Health Coverage Tax Credit - Internal Revenue Service - 2016 Page 2
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5assistance program for older workers
or the month following the death or
Exception. Qualified health insurance
established by the Department of Labor.
divorce.
coverage does not include any of the
following.
Example. You received benefits under
Example. Your spouse was a PBGC
Any state-based coverage listed in
an alternative trade adjustment assistance
payee and died on August 20, 2015. You
items 4a through 4g above unless it also
program for older workers for October
are eligible to receive the HCTC as a
meets the requirements of section 35(e)
2016. The program was established by
recipient for coverage for August 2015
(2).
the Department of Labor. You were an
through July 2017, subject to the other
A flexible spending or similar
eligible ATAA recipient as of the first day
general HCTC requirements. If you didn’t
arrangement.
of October and November.
have separate coverage for August, you
Any insurance if substantially all of its
are eligible to receive the HCTC as a
RTAA Recipient
coverage is of excepted benefits
recipient for coverage for September 2015
described in section 9832(c). For
You were an eligible RTAA recipient as of
through August 2017, subject to the other
example, if you purchase dental or vision
the first day of the month if, for that month
general HCTC requirements.
or the prior month, you received benefits
benefits separately, these benefits are not
Qualified Health Insurance
under a reemployment trade adjustment
qualified health insurance coverage. But, if
Coverage
assistance program for older workers
you purchase dental or vision benefits as
established by the Department of Labor.
part of a comprehensive package and
Qualified health insurance coverage for
these benefits do not represent
the HCTC is any of the following.
Example. You received benefits under
substantially all of its coverage, the
a reemployment trade adjustment
1. Coverage under a group health
comprehensive package of benefits,
assistance program for older workers for
plan available through the employment of
including the dental and vision benefits,
January 2016. The program was
your spouse, but see the instructions for
may be qualified health insurance
established by the Department of Labor.
Line 1
for information on when enrollment
coverage and the premiums paid may be
You were an eligible RTAA recipient as of
in or an offer of employer-sponsored
eligible for the HCTC.
the first day of January and February.
coverage makes you an individual
For more information about
ineligible for the HCTC.
PBGC Payee
whether your coverage is qualified
2. Coverage under a non-group
TIP
You were an eligible PBGC payee as of
health insurance coverage, go to
(individual) health insurance plan other
the first day of the month if both of the
than a qualified health plan offered
following apply.
through a Marketplace. Individual health
Qualifying Family Member
1. You were age 55 to 65 and not
insurance does not include any insurance
enrolled in Medicare as of the first day of
connected with a group health plan or
A qualifying family member is:
the month; and
Your spouse (a spouse does not
federal- or state-based health insurance
include someone who is legally separated
coverage.
2. You received a benefit for that
from his or her spouse under a decree of
month that was paid by the PBGC under
3. Coverage under a COBRA
divorce or of separate maintenance (but
title IV of the Employee Retirement
continuation provision (as defined in
see
Married Persons Filing Separate
Income Security Act of 1974 (ERISA).
section 9832(d)(1)).
Returns
below)), or
4. State-based coverage. State-based
If you received a lump-sum payment
Anyone whom you can claim as a
coverage includes the following.
from the PBGC after August 5, 2002, you
dependent (but see the exception for
meet item (2) above for any month that
a. Continuation coverage provided by
Children of Divorced or Separated Parents
you would have received a PBGC benefit
the state under a state law that requires
below).
if you had not received the lump-sum
such coverage.
For any month that you are eligible to
payment.
b. A qualified state high risk pool (as
take the HCTC, you can include premiums
Continued Qualification for
defined in section 2744(c)(2) of the Public
paid for a qualifying family member for that
Health Service Act).
eligible coverage month if all of the
Family Members after Certain
following statements were true as of the
c. A health insurance program offered
Life Events
first day of that eligible coverage month.
for state employees.
Qualifying family members (spouses and
The qualifying family member was
d. A state-based health insurance
dependents) (see
Qualifying Family
covered by qualified health insurance
program that is comparable to the health
Member
below)) can be considered
coverage for which you paid some or all of
insurance program offered for state
recipients and file Form 8885 under their
the premiums. You and your qualifying
employees.
name and social security number after
family member do not have to be covered
certain life events. You are considered a
e. An arrangement entered into by a
by the same coverage.
recipient and are eligible to newly receive
state and (i) a group health plan (including
The qualifying family member was not
such a plan which is a multiemployer plan
or continue to receive the HCTC in the
enrolled in Medicare Part A, B, or C.
as defined in section 3(37) of ERISA), (ii)
event that a related TAA, ATAA, or RTAA
The qualifying family member was not
an issuer of health insurance coverage,
recipient or PBGC payee dies or finalizes
enrolled in Medicaid or the Children’s
a divorce with you and you were a
(iii) an administrator, or (iv) an employer.
Health Insurance Program (CHIP).
qualifying family member immediately
The qualifying family member was not
f.
A state arrangement with a private
before such event. The TAA, ATAA, or
enrolled in the Federal Employees Health
sector health care coverage purchasing
RTAA recipient or PBGC payee did not
Benefits Program (FEHBP) or eligible to
pool.
need to elect the HCTC prior to the event.
receive benefits under the U.S. military
g. A state-operated health plan that
People who were qualifying family
health system (TRICARE).
does not receive any federal financial
members can receive the tax credit for
The qualifying family member was not
participation.
eligible coverage months up to 24 months
covered by, or eligible for coverage under,
5. Coverage under a health plan
from the death or divorce, or until the first
any employer-sponsored health insurance
funded by a voluntary employees’
coverage month that begins on or after
coverage as described in the instructions
beneficiary association (VEBA) that was
January 1, 2020, whichever comes first.
for
Line
1.
established through a bankruptcy court.
Eligibility to receive the HCTC may begin
in either the month of the death or divorce
Instructions for Form 8885 (2016)
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