IRS Form 1099-H: Guide to Health Coverage Tax Credit (HCTC)

Highlights of Content

Introduction

The U.S. tax system includes a wide range of informational returns designed to help the IRS track income, credits, and benefits. One such specialized form is IRS Form 1099-H, Health Coverage Tax Credit (HCTC) Advance Payments. This form is less common than other 1099 forms, but it plays an important role for taxpayers who benefit from the Health Coverage Tax Credit.

Understanding who files Form 1099-H, who receives it, what information it contains, and how to properly handle it is critical for both payers and recipients. This guide provides a detailed, step-by-step breakdown of the form, its filing requirements, deadlines, penalties, and exceptions.

What Is Form 1099-H?

Form 1099-H, issued by the IRS, reports advance payments of the Health Coverage Tax Credit (HCTC) made to health insurance providers on behalf of eligible individuals.

The Health Coverage Tax Credit (HCTC) is a program designed to help certain displaced workers, retirees, or individuals affected by trade adjustments or pension plan failures. It pays a portion of qualified health insurance premiums, making healthcare more affordable.

Form 1099-H ensures the IRS tracks these payments and ensures recipients properly account for the tax credit on their income tax return.

Who Must File Form 1099-H?

The responsibility to file Form 1099-H falls on the qualified health insurance provider or HCTC program administrator that receives advance payments from the U.S. Treasury on behalf of eligible taxpayers.

Insurance providers must issue the form to each individual for whom they received HCTC advance payments.
The filer must also submit copies to the IRS.
Recipients use the information from the form to claim the credit accurately when filing their personal tax return.

What Is the Health Coverage Tax Credit (HCTC)?

The Health Coverage Tax Credit is a federal program that helps specific groups of taxpayers pay for health insurance coverage. Typically, it covers 72.5% of qualified health insurance premiums, with the taxpayer responsible for the remaining portion.

Eligible individuals include:

Workers who lost jobs due to foreign trade impact and receive Trade Adjustment Assistance (TAA).
Individuals receiving Alternative TAA (ATAA) or Reemployment TAA (RTAA) benefits.
Pension Benefit Guaranty Corporation (PBGC) payees, typically retirees whose pensions were taken over due to employer bankruptcy.

The program is not universally available—it only applies to individuals in these categories.

How Do I Find the Qualified Tax Coverage?

Not all health insurance qualifies for the HCTC. To determine if coverage is eligible, taxpayers should:

Review IRS guidance on qualified health insurance plans.
Confirm with the health insurance provider if the plan is HCTC-certified.
Check if they are part of the advance monthly payment program administered by the IRS and the Treasury.

Qualified coverage usually includes:

COBRA continuation coverage,
State-qualified health insurance plans,
Non-group (individual) health insurance meeting HCTC standards,
Coverage offered through certain Voluntary Employees’ Beneficiary Associations (VEBAs).

When Is the Deadline to File Form 1099-H?

The filing deadlines are similar to other 1099 forms:

Recipient Copy: Must be furnished to taxpayers by January 31 of the year following the payments.
Paper Filing with IRS: Must be filed by February 28.
Electronic Filing with IRS: Must be filed by March 31.

If the due date falls on a weekend or holiday, the deadline shifts to the next business day.

What Information Is Required to Complete Form 1099-H?

When filling out Form 1099-H, the filer must include:

Filer’s Information: Name, address, and TIN (Taxpayer Identification Number).
Recipient’s Information: Name, address, and SSN.
Payment Details: Advance payments of the HCTC, broken down month by month.
Account Number: If applicable, for identifying the recipient.
Other Details: Specific IRS-required codes or notes.

How to Complete Form 1099-H (Line by Line Instructions)

Here’s a simplified breakdown of each box on Form 1099-H:

Box 1 – Total Advance Payments: Reports the total HCTC advance payments made for the year.
Boxes 2–13 – Monthly Advance Payments: Shows the amount of HCTC advance payment made each month (January–December).
Box 14 – Recipient’s Health Plan Account Number: If applicable, provides an internal tracking number.
Filer Information Area: Includes the payer’s (insurance provider’s) name, address, and TIN.
Recipient Information Area: Includes the taxpayer’s name, address, and SSN.

This detailed breakdown ensures both the IRS and the taxpayer understand how much advance credit was applied toward health coverage.

How to File Form 1099-H

Filing can be done in two main ways:

Paper Filing: Submit Copy A of Form 1099-H to the IRS along with Form 1096 (Annual Summary and Transmittal of U.S. Information Returns).
Electronic Filing: Use the IRS FIRE (Filing Information Returns Electronically) system. Electronic filing is mandatory if submitting 10 or more forms.

In addition, the filer must send Copy B of Form 1099-H to the recipient for their tax records.

Where to Mail Form 1099-H

For paper filers, the mailing address depends on the filer’s location. Generally, forms are sent to the IRS processing center listed in the Form 1096 instructions. Common addresses include:

If your business operates in or your legal residence is	Mail Form 1099-H to
Alabama, Arizona, Arkansas, Delaware, Florida, Georgia, Kentucky, Maine, Massachusetts, Mississippi, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, Texas, Vermont, Virginia	Internal Revenue ServiceAustin Submission Processing CenterP.O. Box 149213Austin, TX 78714
Alaska, Colorado, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Montana, Nebraska, Nevada, North Dakota, Oklahoma, Oregon, South Carolina, South Dakota, Tennessee, Utah, Washington, Wisconsin, Wyoming	Department of the TreasuryIRS Submission Processing CenterP.O. Box 219256Kansas City, MO 64121-9256
California, Connecticut, District of Columbia, Louisiana, Maryland, Pennsylvania, Rhode Island, West Virginia	Department of the TreasuryIRS Submission Processing Center1973 North Rulon White Blvd.Ogden, UT 84201

Always check the latest IRS Instructions for Form 1099-H for the correct address, as it can vary.

What Are the Penalties for Not Filing Form 1099-H?

The IRS imposes penalties for late filing, incorrect information, or failure to furnish forms:

$60 per form if filed within 30 days after the due date.
$120 per form if filed after 30 days but before August 1.
$310 per form if filed after August 1 or not filed at all.
$630 per form if the failure is due to intentional disregard.

Penalties can accumulate quickly, making timely and accurate filing essential.

How to Extend the 1099-H Deadline

Filers can request more time to file Form 1099-H by submitting:

Form 8809 (Application for Extension of Time to File Information Returns) – grants an automatic 30-day extension for IRS filing.
Form 15397 – allows for an extension of the recipient copy deadline (must be filed by January 31).

Both forms must be submitted before the applicable deadlines to avoid penalties.

What Are the Exceptions to Filing Form 1099-H?

Not every insurance company or administrator must file Form 1099-H. Exceptions include:

No advance HCTC payments were made for the recipient.
The taxpayer’s health insurance is not HCTC-qualified.
The individual opted out of advance monthly payments.

In such cases, Form 1099-H is not required.

Conclusion

IRS Form 1099-H plays a crucial role in helping eligible taxpayers access the Health Coverage Tax Credit. While it is not a form most people encounter, for those who do, it can make healthcare far more affordable.

Insurance providers must ensure accurate and timely filing, while recipients should carefully review the form to confirm payments and properly claim the HCTC on their tax return.

By understanding the requirements, deadlines, penalties, and exceptions, both filers and taxpayers can remain compliant and maximize the benefits of the HCTC program.