370 / How does an individual claim the additional 7.5 percent retroactive health coverage tax credit?

Boxes 3 through 14, on Form 1099-H, reflect the tax credit amount the individual received for each month in (an 80 percent tax credit for payments made by the HCTC Program in
January and February and a 65 percent tax credit for payments made in March through December).

To claim the additional 7.5 percent retroactive credit:

1. Refer to the box to the left of box 8 on Form 1099-H. This is the additional
   7.5 percent retroactive credit that the HCTC Program has calculated. If the amount listed is $0.00, there is no retroactive credit amount.
2. Complete and file Form 8885, Health Coverage Tax Credit, with Form 1040, U.S. Individual Income Tax Return. Enter the retroactive tax credit amount on line
   7 of Form 8885, Health Coverage Tax Credit. It is not necessary to complete lines 1 through 6 and it is not necessary to submit any supporting documentation.

Note: If a credit is claimed for any month for which a payment was made directly to a qualified health plan, lines 1 through 6 must be completed for those months. Then, the additional 7.5 percent retroactive credit amount is added to the sum of any amount on Part II, line 6, of Form 8885 and the total is entered on Part II, line 7. All required supporting documentation must be submitted and copies should be retained.

Planning Point: Form 8885 must be filed along with Form 1040.