Instructions For Form 8885 - Health Coverage Tax Credit - Internal Revenue Service - 2016 Page 3
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5Note. If you are an eligible TAA, ATAA, or
qualifying family member for the HCTC if
subject to the general eligibility and
RTAA recipient or PBGC payee who
both of the following apply.
election rules for the HCTC and the PTC,
enrolled in Medicare, you may be able to
You were the child’s custodial parent.
you may be able to claim the PTC and the
take the HCTC for coverage of qualifying
Generally, the custodial parent is the
HCTC in the same month for different
family members. You can receive the
parent with whom the child resided for the
coverage. For example, if you elect the
HCTC for the health plan premiums of
greater number of nights in 2016. If the
HCTC for self-only COBRA coverage in a
your qualifying family member(s) for
counting nights rule applies, and the child
month, you can take the PTC for the
eligible coverage months up to 24 months
resided with each parent for an equal
Marketplace coverage of your family
from the month you enrolled in Medicare,
number of nights in 2016, the custodial
members for that same month if you and
or until the first coverage month that
parent is the parent with the higher
they are otherwise eligible to take the PTC
begins on or after January 1, 2020,
adjusted gross income for 2016; and
and the HCTC, as applicable.
whichever comes first. In order to receive
The child’s other parent can claim the
You may also be able to claim the
the HCTC, your qualifying family members
child as a dependent under the rules for
HCTC and the PTC for different coverage
must meet all of the requirements
children of divorced or separated parents
of the same individuals in different months
described above.
(see the instructions for Form 1040,
of the year but need to apply the following
line 6c, or Pub. 501, Exemptions,
Married Persons Filing
special instructions for completing Form
Standard Deduction, and Filing
8962. If you elected to take the HCTC or
Separate Returns
Information, for details).
received the benefit of advance payments
Your spouse is not treated as a qualifying
of the HCTC for at least one month of the
Conversely, if you can claim your child
family member if you and your spouse file
year and the individual(s) covered under
as a dependent under the special rule for
separate returns and either (1) or (2)
the qualified health insurance coverage for
a child of divorced or separated parents
below applies.
the HCTC were also enrolled in a qualified
but you are not the child’s custodial
1. Your spouse also was an eligible
health plan offered through a Marketplace
parent, the child is not your qualifying
TAA, ATAA, RTAA recipient, or PBGC
for at least one other month of the year,
family member for purposes of the HCTC.
payee in 2016; or
complete Form 8962 as provided in the
The child must also meet all of the
Form 8962 instructions, but:
2. All of the following apply.
other conditions of a qualifying
!
Figure your PTC for only those months
a. You lived apart from your spouse
family member defined earlier in
not checked on Form 8885, line 1;
CAUTION
during the last 6 months of 2016.
order for you to claim the HCTC for the
Complete Form 8962, column (f) of
b. A qualifying family member (other
qualified health insurance coverage of the
lines 12 through 23, for all months for
than your spouse) lived in your home for
child.
which advance payment of the premium
more than half of 2016.
tax credit (APTC) was made, even those
Participants in a Health
months checked on Form 8885, line 1;
c. You provided over half of the cost
Insurance Marketplace
and
of keeping up your home.
If you complete Form 8962, line 27
A qualified health plan offered through a
Children of Divorced or
(Excess advance payment of PTC),
Marketplace is not qualified health
Separated Parents
determine Form 8962, line 28 (Repayment
insurance coverage for the HCTC in 2016.
limitation) as follows:
Even if you cannot claim your child as a
And, you cannot take the PTC for any
dependent, he or she is treated as your
months checked on line 1. However,
IF . . .
THEN . . .
The amount on Form 8962, line 5, is 400 or 401
Leave Form 8962, line 28, blank and enter the amount from line 27
on line 29.
The amount on Form 8962, line 24, is zero or blank
Leave Form 8962, line 28, blank and enter the amount from line 27
on line 29.
You did not receive the benefit of advance monthly
Leave Form 8962, line 28, blank and enter the amount from line 27
payments of the HCTC
on line 29.
The amount on Form 8962, line 24, is greater than zero
After you complete Form 8962, line 27, complete Form 8885.
and
Then, add the amount from Form 8885, line 5, if any, to the applicable
repayment limitation provided in the instructions for Form 8962,
You received the benefit of advance monthly payments of
line 28. Enter the result on Form 8962, line 28 and complete line 29.
the HCTC for at least one month of the year for individual(s)
who were enrolled in a qualified health plan offered through
a Marketplace for at least one other month of the year
statements listed on the form, and as
Specific Instructions
Employersponsored health insurance
further explained in these instructions,
coverage. Do not check the box for any
must be true as of the first day of that
month that, as of the first day of the month,
Line 1
month. You must also check the box for
either (1) or (2) apply.
each month after the election month for
You must elect the HCTC to receive the
1. You were covered under any
which all of the statements listed on the
benefit of the HCTC. Check the box for the
employer-sponsored health insurance
form are true as of the first day of that
first eligible coverage month you are
plan (including any employer-sponsored
month, even if you are not claiming the
electing to take the HCTC. All of the
health insurance plan of your spouse)
HCTC for those months.
Instructions for Form 8885 (2016)
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