What is Form 1099-H?
Form 1099-H, the advance Health Insurance Tax Credit, is a series of Internal Revenue Service (IRS) "1099" forms used to report various unpaid payments and transactions. The Form 1099-H is used to report advance payments of qualifying health insurance payments for Reemployment TAA (RTAA), Alternative TAA (ATAA), Trade Adjustment Assistance (TAA), or pension benefit guaranty corporation (PBGC) payee, and their qualified family members.
Key Points to Note
Recipients of RTAA, ATAA, TAA, and PBGC benefits may be eligible for the Health Insurance Tax Credit, helping to reduce health insurance premiums.
You will receive a Form 1099-H if your health insurer receives advance payments on your behalf as an RTAA, ATAA, TAA, or PBGC beneficiary.
The HCTC program will expire at midnight on December 31, 2020.
Who needs Form 1099-H?
You need Form 1099-H if your health insurance provider has accepted advance payments from the Treasury Department on your behalf as a recipient of RTAA, ATAA, TAA, or PBGC benefits. The prepayment helps you pay for monthly health insurance premiums. Note that this is not the same as the prepayment tax credit that some people receive in the health insurance market.
What is Form 1099-H used for?
Qualified health insurance providers who receive advance payments of the Health Insurance Tax Credit (HCTC) from the Treasury Department on behalf of eligible beneficiaries use Form 1099-H to report the IRS payments. If you are an HCTC beneficiary, you will receive a copy of Form 1099-H.
Prepayments are part of the HCTC, a federal tax credit that can help individuals and families drastically lower their monthly health insurance premiums. You may be eligible for HCTC if:
Eligible for TAA allowance due to loss of qualified employment
An ATAA or RTAA recipient
Aged 55 to 64 and a defined benefit pension plan was taken over by the Pension Benefit Guaranty Corporation (PBGC)
You are not eligible for HCTC if:
Can be claimed as an employee on someone else's tax return.
You are enrolled in Medicaid, Medicare, the Child Health Insurance Program (CHIP), or the Federal Employee Health Benefits Program or eligible for United States Army Health Care Benefits.
You are enrolled in an Insurance Plan under the Affordable Care Act.
As an HCTC participant, you can pay a portion of the HCTC health insurance premiums each month. The HCTC plan will add an outstanding balance and send the full payment to your health plan. Alternatively, you can make a full payment from your health plan each month and then receive the HCTC as an annual tax credit. Currently, the HCTC program will expire at midnight on December 31, 2020.
You can receive your HCTC benefits directly from your health insurance provider, or you can receive them as an annual tax credit.
How to read Form 1099-H
The left side of the Form 1099-H includes details about "the issuer/provider" (your health insurance) and the "recipient," including addresses, names, and tax identification numbers. The right side of the form contains 14 boxes.
Box 1: number of HCTC advance payment. Box 1 is the total amount of HCTC advances for qualifying health insurance costs incurred on your behalf. The amount cannot exceed 72.5% of the total health insurance premiums for that year.
Box 2: Number of months of HCTC advance payments and repayment credits paid. Box 2 is the total number of months that you have received HCTC payments.
Tables 3-14. Tables 3 through 14 show the amount of HCTC advance payments you paid for each month of the year. The total values shown in these boxes must equal the value shown in box 1.
Where to get form 1099-H
If you receive deposits on your health insurance credit to help pay your health insurance premiums, your insurer will send you a copy of Form 1099-H.
Where to submit form 1099-H
Nowhere, if you are the recipient, three copies of Form 1099-H are available. The issuer sends copy A to the IRS, Copy B to the taxpayer, and keeps copy C. You may need to include some of the information from Form 1099-H in your tax return, but you don't need to send any copy with the return. However, you must keep the copy with your tax documents for future reference.
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