Health Coverage Tax Credit (HCTC) Advance Payments

2016

Instructions for Form 1099-H

Department of the Treasury
Internal Revenue Service

Health Coverage Tax Credit (HCTC) Advance Payments
Section references are to the Internal Revenue Code unless
otherwise noted.

Future Developments

For the latest information about developments related to Form
1099-H and its instructions, such as legislation enacted after they
were published, go to www.irs.gov/form1099h.

What's New

When and where to file.
Taxpayer identification numbers.
Statements to recipients.
Corrected and void returns.
Other general topics.
You can get the general instructions at www.irs.gov/form1099h.

Specific Instructions

Truncating recipient's identification number on paper recipient statements. Pursuant to Treasury Regulations section
301.6109-4, all filers of this form may truncate a recipient's
identification number (social security number (SSN), individual
taxpayer identification number (ITIN), adoption taxpayer
identification number (ATIN), or employer identification number
(EIN)) on recipient statements. Truncation is not allowed on any
documents the filer files with the IRS. A filer’s identification number
may not be truncated on any form. See part J in the 2016 General
Instructions for Certain Information Returns.
HCTC extended and modified through 2019. The Trade
Preferences Extension Act of 2015 (Public Law 114-27), enacted
June 29, 2015, extended and modified the expired HCTC.
Previously, those eligible for the HCTC could claim the credit against
the premiums they paid for certain health insurance coverage
through 2013. The modified HCTC can now be claimed for coverage
from 2014 through 2019. For the latest information on the HCTC, go
to www.irs.gov/HCTC.
Online fillable form. Due to the very low volume of paper Forms
1099-H received and processed by the IRS each year, this form has
been converted to an online fillable format. You may fill out the form,
found online at www.irs.gov/form1099h, and send Copy B to the
recipient. For filing with the IRS, follow your usual procedures for
filing electronically if you are filing 250 or more forms. If you are filing
this form on paper due to a low volume of recipients, for this form
only, you may send in the black and white Copy A with Forms 1096
that you print from the IRS website.

File Form 1099-H if you received any advance payments during the
calendar year of qualified health insurance payments for the benefit
of eligible trade adjustment assistance (TAA), Alternative TAA,
Reemployment TAA, or Pension Benefit Guaranty Corporation
(PBGC) pension recipients and their qualifying family members.

Who Must File

Section 6050T requires that if you are a provider of qualified health
insurance coverage (defined in section 35(e)) and you receive
advance payments from the Department of the Treasury on behalf of
eligible recipients pursuant to section 7527, you must file Forms
1099-H to report those advance payments. You must also furnish a
statement reporting that information to the eligible recipient.

Statements to Recipients

If you are required to file Form 1099-H, a statement must be
furnished to the recipient. See part J in the 2016 General
Instructions for Certain Information Returns.

Box 1—Amount of HCTC Advance Payments

Enter the total amount of advance payments of health insurance
premiums received on behalf of the recipient for the period January
1, 2016, through December 31, 2016. The amount received in 2016
cannot exceed 72.5% of the total health insurance premium for the
individual.

Box 2—No. of Months HCTC Payments Received

Reminder

Enter the number of months payments were received on behalf of
the recipient. This number cannot be more than 12.

General instructions. In addition to these specific instructions, you
should also use the 2016 General Instructions for Certain
Information Returns. Those general instructions include information
about the following topics.
Backup withholding.
Electronic reporting requirements.
Penalties.
Who must file (nominee/middleman).

Boxes 3 Through 14—Amount of Advance
Payment(s) Included in Box 1

Dec 09, 2015

Enter the amount of the advance payment received for each month
in the applicable box. You may receive these payments prior to the
month for which they are paid. Be sure to enter the amounts in the
correct box.

Cat. No. 35080G