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TAA Program Assistance:
888-258-9966
Fax: 608-327-6172
Email tra@dwd.wi.gov

Health Coverage Tax Credit (HCTC)

What is HCTC?

HCTC is a Federal tax credit program administered by the Internal Revenue Service (IRS). HCTC helps cover the cost of health insurance while you participate in the TAA program to make your health insurance premiums more affordable.

NOTE: The HCTC program does not provide health insurance coverage.

How Does it Work?

Participants in the HCTC program may select either of the following credit options:

NOTE: HCTC cannot be applied to separate dental / vision plans.

Am I Eligible?

You must be enrolled in the TAA program and receive one Unemployment Insurance (UI) payment, Trade Readjustment Allowance (TRA) or Reemployment Trade Adjustment Assistance (RTAA) wage subsidy each calendar month. Once you receive at least one UI, TRA or RTAA payment, you may apply for the HCTC benefit. Your HCTC eligibility ends when you no longer receive UI, TRA or RTAA payments, or when your TRA eligibility period expires (even if you are still receiving UI).

Additionally, you must:

NOTE: You may be able to change health care plans to receive the HCTC benefit.

What are Qualified Health Plans?

The following health plans do not qualify for HCTC:

Is HCTC Available to My Family Members?

Yes. For any month that you are eligible for HCTC, you can include premiums paid for a qualifying family member for that eligible coverage month. The qualifying family member must:

How Do I Participate in the HCTC Program?

  1. Apply for the TAA program.
  2. DWD will then mail a determination letter to both you and the IRS, if you are eligible.
  3. For monthly payments, use these IRS links to enroll:
  4. For the annual tax credit, you pay 100% of your health insurance premium and then submit IRS Form 8885 when you file your annual federal income taxes.
  5. Pay your monthly premiums on time.

REMEMBER: Keep a copy of all documents for your records.

For More Information

Additional information about the program and eligibility requirements is available at http://www.irs.gov/hctc.

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