Form 8885

Department of the Treasury 

Internal Revenue Service 

Health Coverage Tax Credit

▶ Attach to Form 1040, 1040-SR, 1040-NR, 1040-SS, or 1040-PR.

▶ Go to www.irs.gov/Form8885 for instructions and the latest information.

OMB No. 1545-0074

2021

Attachment 

Sequence No. 134

Name of recipient (if both spouses are recipients, complete a separate form for each spouse) Recipient’s social security number

Before you begin: See Definitions and Special Rules in the instructions.

▲!

CAUTION

Do not complete this form if you can be claimed as a dependent on someone else’s 2021 tax return.

Part I Election To Take the Health Coverage Tax Credit

1 Check the box below for the first month in your tax year that you elect to take the Health Coverage Tax Credit (HCTC). All of

the following statements must be true as of the first day of that month. You must also check the box for each month after your 

election month that all of the following statements were true as of the first day of that month.

• You were an eligible trade adjustment assistance (TAA) recipient, alternative TAA (ATAA) recipient, reemployment TAA (RTAA) 

recipient, or Pension Benefit Guaranty Corporation (PBGC) payee; or you were a qualifying family member of an individual who 

fell under one of the categories listed above when he or she passed away or with whom you finalized 

a divorce. 

• You and/or your family member(s) were covered by HCTC-qualified health insurance coverage for which you paid the entire 

premiums, or your portion of the premiums, directly to your health plan or to “US Treasury-HCTC.”

• You were not enrolled in Medicare Part A, B, or C, or you were enrolled in Medicare but your family member(s) qualified for 

the HCTC.

• You were not enrolled in Medicaid or the Children’s Health Insurance Program (CHIP).

• You were not enrolled in the Federal Employees Health Benefits Program (FEHBP) or eligible to receive benefits under the

U.S. military health system (TRICARE).

• You were not imprisoned under federal, state, or local authority.

• Your or your spouse’s employer (or former employer) did not pay 50% or more of the cost of coverage.

• You did not receive a 100% COBRA premium reduction from your former employer or COBRA administrator.

January February March April May June

July August September October November December

Part II Health Coverage Tax Credit

2 Enter the total amount paid directly to your health plan for HCTC-qualified health insurance coverage for 

the months checked on line 1. See instructions. Do not include on line 2 any insurance premiums paid 

to “US Treasury-HCTC” or any advance monthly payments made on your behalf as shown on Form 

1099-H or any insurance premiums you paid for which you received a reimbursement of the HCTC 

during the year by filing Form 14095 . . . . . . . . . . . . . . . . . . . . . . 2

▲!

CAUTION

You must attach the required documents listed in the instructions for any amounts included 

on line 2. If you do not attach the required documents, your credit will be disallowed.

3 Enter the total amount of any Archer MSA or health savings accounts distributions used to pay for 

HCTC-qualified health insurance coverage for the months checked on line 1 . . . . . . . . . . 3

4 Subtract line 3 from line 2. Enter the result, but not less than zero . . . . . . . . . . . . 4

5 Health Coverage Tax Credit. If you received the benefit of the advance monthly payment program

for any month not checked on line 1 or received a reimbursement of the HCTC during the year by

filing Form 14095 for any month not checked on line 1, see the instructions for line 5 for more details. 

Otherwise, multiply the amount on line 4 by 72.5% (0.725). Enter the result here and on Schedule 3

(Form 1040), line 13c; Form 1040-SS, line 10; or Form 1040-PR, line 10 . . . . . . . . . . 5

For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 34641D Form 8885 (2021)