Health Coverage Tax Credit (HCTC)
Investment ID: 015-000200176
Overview
Program Title
Health Coverage Tax Credit (HCTC)
Description
HCTC, extended and modified by Public Law 114-27 enacted June 2015, provides a solution to process any claims both current and retroactive for a tax credit equal to a percent of certain health coverage costs and provide support for external stakeholders.
Type of Program
Non-major IT Investments
Multi-Agency Category
Not Applicable
Associated Websites
https://www.irs.gov/Credits-&-Deductions/Individuals/HCTC
Investment Detail
The HCTC is a refundable federal tax credit that was first made available in 2002 to subsidize the cost of qualified health insurance coverage for certain individuals and their qualifying family members (generally an individual's spouse and dependent children). The HCTC's subsidy level varied over time, but it currently covers 72.5 percent of the premium for qualifying coverage. The HCTC is generally available to an individual who satisfies each of the following conditions: 1) the individual meets the general eligibility requirements; 2) the individual pays 27.5 percent or more of the cost of coverage for qualified health insurance; 3) the individual does not have other specified coverage; and 4) the individual is not incarcerated or claimed as a dependent by another person.