Form 8885 is the Internal Revenue Service (IRS) form used to elect and figure the Health Coverage Tax Credit (HCTC). It is an attachment to Form 1040, 1040-SR, 1040-NR, 1040-SS, or 1040-PR, and the IRS says 2021 is the last year it can be filed. On this page you can fill out the form online on FillingPDF and download or print the completed PDF; the original PDF and its instructions are published by the IRS at irs.gov.
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What is 8885?
Form 8885, Health Coverage Tax Credit, is the IRS form on which an eligible person elects the Health Coverage Tax Credit (HCTC) for specific months and figures the amount of the credit, if any, for the tax year.
The form has two parts. Part I (line 1) is the election: you check the box for the first month you elect the HCTC and for every later month in which all the listed statements were true on the first day of the month. Part II (lines 2 through 5) figures the credit from premiums paid directly to your health plan, less any Archer MSA or health savings account distributions used for that coverage.
The result on line 5 is carried to Schedule 3 (Form 1040), line 13c; Form 1040-SS, line 10; or Form 1040-PR, line 10. The form is printed with OMB No. 1545-0074 and Attachment Sequence No. 134, and the IRS publishes the instructions at www.irs.gov/Form8885.
The HCTC expired on December 31, 2021, and cannot be claimed for coverage months beginning in 2022. The IRS states that 2021 is the last year to file Form 8885 and that it should not be filed for 2022 and later years. The IRS instructions also refer to Form 14095 (the HCTC reimbursement request) and Form 1099-H (advance payments), which affect what goes on line 2 and line 5.
Who needs to file 8885?
You can elect the HCTC on Form 8885 only if, in 2021, you were an eligible trade adjustment assistance (TAA), alternative TAA (ATAA), or reemployment TAA (RTAA) recipient or a Pension Benefit Guaranty Corporation (PBGC) payee, or the qualifying family member of such a person who died or finalized a divorce with you. You must also not be claimable as a dependent on someone else's 2021 return and must meet the other conditions listed on line 1.
Those line 1 conditions include HCTC-qualified health coverage with premiums paid by you; no enrollment in Medicare Part A, B, or C (unless your family members qualified), Medicaid, CHIP, FEHBP or TRICARE; no imprisonment; no employer payment of 50% or more of the coverage cost; and no 100% COBRA premium reduction.
Qualifying family members (spouses and dependents) can be recipients and file under their own name and Social Security number after the recipient's death or a finalized divorce. If both spouses are recipients, complete a separate form for each.
Do not complete this form if you can be claimed as a dependent on someone else's 2021 tax return. Even if you cannot claim the credit on your return, you must still file Form 8885 to elect the HCTC for any month you took part in the advance monthly payment program.
When to file 8885
For 2021, the election on Form 8885 must be made no later than the due date (including extensions) of your tax return, so the form is filed with that return. The IRS states that 2021 is the last year to file Form 8885 because the HCTC expired on December 31, 2021; do not file it for 2022 and later years.
Timing matters even if you cannot claim the credit. If you took part in the advance monthly payment program, you must still file Form 8885 to elect the HCTC for those months. The instructions warn that failing to make a timely election requires you to report the advance monthly payment amounts as additional tax owed on your return.
Once you elect the HCTC for a month in 2021, the election applies to all later eligible coverage months in 2021.
Documents you need
- For all health plans: an official letter showing you were an eligible individual for the months claimed on line 2 in 2021.
- For TAA, ATAA, or RTAA eligibility: a copy of the official letter from the Department of Labor, your state workforce agency, or employment office saying you are eligible for trade adjustment benefits.
- For PBGC eligibility: the official letter, or a copy of your 2021 Form 1099-R from the PBGC showing you received a benefit paid by the PBGC.
- For all health plans: copies of your health insurance bills or COBRA payment coupons for each month claimed on line 2, showing name, health plan, monthly premium, dates of coverage and plan ID.
- If your plan issues no bills or coupons: health plan enrollment documents or an official plan letter with the same information; amounts for ineligible coverage (such as dental or vision bought separately) must be specified.
- For all health plans: proof of payment for each month claimed on line 2, such as canceled checks (front and back), bank statements, credit card statements or money orders, showing the amount paid and to whom.
- For COBRA coverage: your completed and signed COBRA Election Letter, a letter from your former employer or COBRA administrator with the coverage dates, plan name, address and covered family members, and the "Notice of Rights to Continue Coverage."
- For coverage through your spouse's employer: paycheck stubs showing health coverage deductions for each month claimed, and a letter from the employer stating it contributed less than 50% of the cost (TAA recipients and PBGC payees) or made no contribution (ATAA and RTAA recipients).
- For an e-filed return: the same documents as a PDF attachment if your software supports it, or attached to Form 8453 and mailed to the IRS.
How to fill out 8885
Enter recipient name and SSN
At the top, enter the name of the recipient and the recipient's social security number. If both spouses are recipients, complete a separate form for each spouse.
Confirm you are not a dependent
Read the caution before Part I: do not complete the form if you can be claimed as a dependent on someone else's 2021 tax return. Review Definitions and Special Rules in the instructions first.
Make your election on line 1
Check the box for the first month of 2021 in which you elect the HCTC and all the printed statements were true on the first day of that month. Then check the box for each later month in which they remained true.
Enter premiums paid on line 2
Enter the total paid directly to your health plan for HCTC-qualified coverage for the months checked on line 1. Leave out premiums paid to "US Treasury-HCTC," advance payments shown on Form 1099-H and amounts reimbursed through Form 14095.
Enter distributions on line 3
Enter the total Archer MSA or health savings account distributions used to pay for HCTC-qualified coverage for the months checked on line 1.
Subtract on line 4
Subtract line 3 from line 2 and enter the result, but not less than zero.
Figure the credit on line 5
If no advance payments or Form 14095 reimbursements apply to months not checked on line 1, multiply line 4 by the percentage printed on line 5. Otherwise use the Excess Advance HCTC Repayment Worksheet in the instructions.
Carry the credit to your return
Enter the line 5 result on Schedule 3 (Form 1040), line 13c; Form 1040-SS, line 10; or Form 1040-PR, line 10. If line 5 is negative, zero or blank, you cannot claim the credit on your return.
Gather the required documents
For any amount on line 2, assemble the eligibility letter, health insurance bills or COBRA coupons, and proof of payment listed in the instructions. Add the extra COBRA or spouse's-employer documents if they apply.
Review and download the PDF
Check that every checked month, amount and name is correct, then download or print the completed PDF from FillingPDF. Attach it and your documents to your tax return as described under How to submit.
How to submit 8885
Form 8885 is not filed on its own: you attach it to your federal income tax return (Form 1040, 1040-SR, 1040-NR, 1040-SS, or 1040-PR) and submit it through the channels you use for that return.
- With a paper return: attach the completed Form 8885 and the required documents listed in the instructions to your return. Mailing addresses are those in your tax return instructions; Form 8885 has none of its own.
- With an e-filed return: attach a PDF copy of the required documents if your tax software supports it. Otherwise, attach the documents to Form 8453, U.S. Individual Income Tax Transmittal for an IRS e-file Return, and mail it to the IRS according to the instructions for that form.
The credit amount from line 5 is entered on Schedule 3 (Form 1040), line 13c; Form 1040-SS, line 10; or Form 1040-PR, line 10. No documents are required if you file Form 8885 only to elect the HCTC for months you took part in the advance monthly payment program. FillingPDF lets you fill out and download the PDF; submission follows the channels above.
Common mistakes to avoid
- Completing Form 8885 when you can be claimed as a dependent on someone else's 2021 tax return; the form says not to.
- Including on line 2 premiums paid to "US Treasury-HCTC," advance monthly payments shown on Form 1099-H, or premiums reimbursed through Form 14095.
- Attaching no required documents for amounts on line 2; the form warns that the credit will be disallowed.
- Checking the first election month but skipping later months on line 1 in which all the statements were true, even months for which you are not claiming the credit.
- Checking a line 1 box for a month in which you received a 100% COBRA premium reduction, or in which an employer paid 50% or more of your coverage cost.
- Including separately purchased dental or vision premiums on line 2; those amounts do not qualify for the HCTC.
- Skipping the Excess Advance HCTC Repayment Worksheet when you got advance payments or Form 14095 reimbursements for months not checked on line 1.
- Not filing Form 8885 because you cannot claim the credit, when you took part in the advance monthly payment program; the election is still required.
- Filing one form for both spouses when both are recipients; each spouse completes a separate form.
Frequently asked questions
What is Form 8885 used for?
Form 8885 is used to elect the Health Coverage Tax Credit (HCTC) and figure its amount, if any. You attach it to Form 1040, 1040-SR, 1040-NR, 1040-SS, or 1040-PR. The line 5 result goes to Schedule 3 (Form 1040), line 13c, or to the line named for Form 1040-SS or 1040-PR.
Can I still file Form 8885?
Only for 2021. The IRS says the last year to file Form 8885 is 2021 because the HCTC expired on December 31, 2021, and the form should not be filed for 2022 and later years. The credit cannot be claimed for coverage months beginning in 2022.
Who qualifies for the Health Coverage Tax Credit?
In 2021, eligible TAA, ATAA, or RTAA recipients and PBGC payees qualified, as did their qualifying family members after a death or finalized divorce. You also could not be claimed as a dependent and had to meet the other line 1 conditions, such as no Medicaid, CHIP or Medicare Parts A, B, or C enrollment.
What documents do I attach to Form 8885?
For amounts on line 2, attach an official eligibility letter, your health insurance bills or COBRA payment coupons, and proof of payment for each month claimed. COBRA and spouse's-employer coverage need extra documents. Without them, the credit is disallowed.
Do I have to file Form 8885 if I only used the advance monthly payments?
Yes. Even if you cannot claim the HCTC on your return, you must file Form 8885 to elect it for months you took part in the advance monthly payment program. No documents are required in that case. Without a timely election, you report the advance payments as additional tax.
What is the deadline to make the HCTC election for 2021?
The election must be made no later than the due date, including extensions, of your 2021 tax return. You make it by checking the line 1 box for your first election month and every eligible month after it.
Can I fill out Form 8885 online?
You can fill out the PDF online on FillingPDF and download or print it. FillingPDF is an independent service and does not file anything with the IRS; you attach the form to your tax return and submit it through the IRS channels for that return.
Can I claim the HCTC and the premium tax credit in the same year?
Possibly, but not for the same month. The instructions say a Marketplace plan is not qualified coverage for the HCTC, and you cannot take the premium tax credit for months checked on line 1. Special Form 8962 rules apply when you use both in different months.
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