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12592: 8885 - Health Coverage Tax Credit


1040 Individual Data Entry

Form 8885 Health Coverage Tax Credit (HCTC)

 

The Health Coverage Tax Credit (HCTC) was set to expire at the end of 2013, but has been extended. Qualified plans offered through the Health Insurance Marketplace qualify for the HCTC.  For further guidance see, "Section 4. Frequently Asked Questions" in Notice 2016–2.

Data Entry

  • Drake14: Form 8885 is not available in Drake14.
    Per the IRS, when preparing or amending the 2014 1040 tax return to include Form 8885:

    "To elect the HCTC for 2014, you must file an amended return.  Complete the 2013 Form 8885 for 2014 after crossing out '2013' and writing '2014' at the top of Form 8885."

  • See 2015 Form 8885 instructions for more details on claiming the HCTC in tax year 2014.

  • Drake15: the 8885 screen is accessible from the Health Care tab in the 1040 package. You can take the HCTC for 2015 if you were an eligible trade adjustment assistance (TAA) recipient, alternative TAA (ATAA) recipient, reemployment TAA (RTAA) recipient, Pension Benefit Guaranty Corporation (PBGC) pension payee, or qualifying family member.

  • Drake16 and forward: the 8885 screen is accessible from the Health Care tab in the 1040 package.

    For questions about claiming the HCTC, see Questions and Answers on Qualified Health Insurance Plans for 2016 Health Coverage Tax Credit Eligibility.

For more information see:

  1. The instructions for Form 8885:  https://www.irs.gov/pub/irs-pdf/i8885.pdf
  2. The IRS site at: http://www.irs.gov/uac/Form-8885,-Health-Coverage-Tax-Credit
  3. Internal Revenue Bulletin Notice 2016-2 at https://www.irs.gov/irb/2016-02_IRB/ar09.html
  4. Health Coverage Tax Credit at https://www.irs.gov/credits-deductions/individuals/hctc

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