Fillable Form 8885 - Health Coverage Tax Credit

Form 8885 (2012)

Page

Individual health insurance does not include any

Qualifying Family Member

insurance connected with a group health plan or federal-

A qualifying family member is:

or state-based health insurance coverage.

• Your spouse (but see Married Persons Filing Separate

3. Coverage under a COBRA continuation provision (as

Returns below), or

defined in section 9832(d)(1)).

• Anyone whom you can claim as a dependent (but see

Note. As of February 2009, electing to receive the 65%

the exception for Children of Divorced or Separated

COBRA premium reduction will disqualify you from

Parents below).

receiving the HCTC in the same month. You must pay

For any month that you are eligible to claim the HCTC,

more than 50% of your COBRA coverage to be eligible

you can include premiums paid for a qualifying family

for the HCTC.

member for that month if all of the following statements

4. Coverage under a state-qualified health plan.

were true as of the first day of that month.

State-qualified health plans include:

• The qualifying family member was covered by a

a. Continuation coverage provided by the state under a

qualified health insurance plan (defined earlier) for which

state law that requires such coverage.

you paid the premiums. You and your qualifying family

b. A qualified state high risk pool (as defined in section

member do not have to be covered by the same plan.

2744(c)(2) of the Public Health Service Act).

• The qualifying family member was not enrolled in

c. A health insurance program offered for state

Medicare Part A, B, or C.

employees.

• The qualifying family member was not enrolled in

d. A state-based health insurance program that is

Medicaid or the Children’s Health Insurance Program

comparable to the health insurance program offered for

(CHIP).

state employees.

• The qualifying family member was not enrolled in the

e. An arrangement entered into by a state and (a) a

Federal Employees Health Benefits Program (FEHBP) or

group health plan (including such a plan which is a

eligible to receive benefits under the U.S. military health

multiemployer plan as defined in section 3(37) of ERISA),

system (TRICARE).

(b) an issuer of health insurance coverage, (c) an

• The qualifying family member was not covered by, or

administrator, or (d) an employer.

eligible for coverage under, any employer-sponsored

f. A state arrangement with a private sector health care

health insurance plan (see the instructions for line 1).

coverage purchasing pool.

If you are a TAA, ATAA, or RTAA recipient or PBGC

g. A state-operated health plan that does not receive

payee who enrolled in Medicare, you can receive the

any federal financial participation.

HCTC for the health plan premiums of your qualified

family member(s) for up to 24 months from the month you

5. A health plan purchased through a Voluntary

enrolled in Medicare, or until January 1, 2014, whichever

Employees' Beneficiary Association (VEBA) that was

comes first. In order to receive the HCTC, your qualified

established through the bankruptcy of your former

family members must meet all of the requirements

employer. For more information, see the TIP at the end of

described above.

this section.

Married Persons Filing Separate Returns

Exception. A qualified health insurance plan does not

include any of the following.

Your spouse is not treated as a qualifying family member

if your filing status is married filing separately and either

• Any state-based coverage listed in 4a through 4g above

(1) or (2) below applies.

unless it also meets the requirements of section 35(e)(2).

1. Your spouse also was an eligible TAA recipient,

• A flexible spending or similar arrangement.

ATAA recipient, RTAA recipient, or PBGC pension payee

• Any insurance if substantially all of its coverage is of

in 2012.

excepted benefits described in section 9832(c). For

2. All of the following apply:

example, if you purchase dental or vision benefits

separately, these benefits are not part of a qualified

a. You lived apart from your spouse during the last 6

health insurance plan for the HCTC. But, if you purchase

months of 2012.

dental or vision benefits as part of a comprehensive

b. A qualifying family member (other than your spouse)

package and these benefits do not represent substantially

lived in your home for more than half of 2012.

all of its coverage, these benefits may be part of a

c. You provided over half of the cost of keeping up

qualified health insurance plan and the premiums paid

your home.

may be eligible for the HCTC.

If you are not sure whether your health

Children of Divorced or Separated Parents

insurance plan is a qualified health insurance

TIP

Even if you cannot claim your child as a dependent, he or

plan, go to IRS.gov, enter HCTC Resources for

she is treated as your qualifying family member for the

Individuals in the search box and link to HCTC:

HCTC if both of the following apply.

Resources for Individuals found under that heading. You

• You were the child’s custodial parent. This is the parent

can also contact the HCTC Customer Contact Center at

with whom the child lived for the greater number of nights

1-866-628-HCTC (1-866-628-4282) or 1-866-626-4282

in 2012. If the child was with each parent for an equal

(TTY).

number of nights, the custodial parent is the parent with

the higher adjusted gross income.

Form 8885 - Health Coverage Tax Credit - 2012 Page 4

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