- TRA: 608-267-7772
- TAA: 888-258-9966
Trade Adjustment Assistance (TAA) and Trade Readjustment Allowance (TRA)
What is it?
A Federal tax credit program administered by the IRS for individuals
participating in the Trade Adjustment Assistance (TAA) Program. The purpose of
the HCTC is to help workers who have lost their jobs due to foreign competition
cover the cost of health insurance for a limited time. This is NOT an insurance
plan. It is a tax credit that will help make your health insurance payments more
How does it work?
- Yearly Credit - You pay 100% of your premium for the entire year and
then receive a 72.50% refund or credit against your federal taxes owed (IRS Form
- Monthly Credit – The IRS
estimates the monthly credit option will become available in January 2017.
The HCTC cannot be applied to separate dental / vision plans.
What are the General Eligibility Requirements?
Eligible for TRA payments, participating in TAA reemployment activities, and
receiving one TRA or UI payment each calendar month OR receiving the
Reemployment Trade Adjustment Assistance (RTAA) wage subsidy. The HCTC benefit
can be applied for and begin only after being determined eligible for TRA or
RTAA and receipt of a payment. To maintain ongoing HCTC eligibility, you must
receive one UI, TRA or RTAA payment per calendar month.
HCTC eligibility ends when the claimant no longer receives UI / TRA or RTAA
payments, or when the TRA eligibility period expires (even if still receiving
- Insured through a qualified plan
- Cannot be claimed as a dependent on someone else’s federal tax return
- Cannot be in prison
- Cannot be enrolled in
- U.S. military health system (TRICARE)
- Children’s Health Insurance Program (CHIP)
- Federal Employees Health Benefits Program (FEHBP)
*You may be able to change plans in order to receive the HCTC
Is this available to my family members?
Yes, if family members meet general eligibility requirements & are claimed as
dependents on your federal tax return or you file your federal income taxes
jointly with your spouse.
What types of health insurance plans are approved for this tax credit?
- COBRA: Must pay more than 50% of COBRA premiums. If COBRA
eligibility ends, HCTC eligibility also ends, until you enroll in another
qualified health plan.
- Spouse’s Employer Health Plan: Individuals may enroll in group coverage
through spouse’s employer. Spouse must pay more than 50% of premium. The HCTC
can only be claimed as an annual tax credit unless it is a COBRA plan.
- Non-Group / Individual Health Plan: Must have taken effect 30 days
prior to your last paid day of work. Does not include any post-employment pay
(e.g., severance pay or retirement pay).
How do I participate in the HCTC program?
- Apply for benefits and services through the Trade Act Program
- The State will then make an initial eligibility determination & send
notice to the HCTC Program if you are eligible
- If you choose to receive the annual tax credit, pay 100% of your
monthly health insurance and then file IRS Form 8885 when you file your annual
federal income taxes
- Timely pay your monthly premiums
For More Information
Questions about the program and eligibility requirements can be directed to
the HCTC website at http://www.irs.gov (key
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