Type 1099-H was final used for tax yr 2021 and was issued to individuals who acquired advance funds of the well being protection tax credit score (HCTC) to assist cowl medical insurance prices. Let’s break down precisely what this kind was all about and the way it impacted your earnings tax return.
At a look:
- Type 1099-H was used to report superior funds for the well being protection tax credit score or HCTC.
- The HCTC expired after tax yr 2021, so you’ll not obtain it for tax yr 2024.
What’s a 1099-H type?
The 1099-H type was an Inner Income Service (IRS) type that reported the full quantity of advance funds acquired for the well being protection tax credit score. The HCTC expired on Dec. 31, 2021, nevertheless it was designed to assist people and their members of the family pay for medical insurance premiums in the event that they had been receiving advantages like commerce adjustment help (TAA), various TAA, reemployment TAA, or funds from the Pension Profit Warranty Company (PBGC).
IRS Type 1099-H instance
Beneath is an instance of what Type 1099-H appeared like:
This tax doc incorporates contact data for the issuer/payer (the medical insurance firm), together with their identify, tackle, and taxpayer identification quantity (TIN). You’ll additionally see data for the payee (you) and your TIN, typically your Social Safety quantity (SSN).
- Field 1: Quantity of HCTC advance funds – This lists the full quantity of advance funds made to your well being insurer beneath the HCTC program. You wanted this information once you filed your tax return to find out how a lot you benefited from the credit score.
- Field 2: No. of mos. of HCTC advance funds and reimbursement credit paid to you – This exhibits the variety of months you acquired HCTC funds.
- Bins 3-14 – These bins present the HCTC advance cost quantity you acquired in every month (the full of those bins equal the quantity in Field 1).
Type 1099-H directions
- Verify for accuracy: As a tax filer, it’s necessary to all the time test the numbers in your tax kinds to make sure accuracy. In case you discover one thing off, contact the shape’s issuer instantly.
- Report in your tax return: In case you acquired Type 1099-H, you’d have reported it utilizing Type 8885. In case you e-filed with TaxAct®, our software program helped stroll you thru the method step-by-step.
- Maintain Type 1099-H: At all times grasp onto your tax kinds for at the least three years in case the IRS must confirm one thing.
FAQs about Type 1099-H
How do I report a 1099-H?
To report your HCTC funds, you would come with the data from Type 1099-H on Type 8885 when submitting your tax return. You didn’t have to connect Type 1099-H to your federal tax return.
How can I get a 1099-H type?
For the reason that 1099-H type is now not used, you received’t obtain it for tax years past 2021. Nonetheless, for those who want a replica from 2021 or earlier, you should still have the ability to discover it via your insurance coverage protection supplier.
The way to report Type 1099-H with TaxAct
Despite the fact that Type 1099-H has been retired, it’s nonetheless necessary to file a federal earnings tax return, particularly for those who may qualify for a tax refund. For tax years when the shape was nonetheless related, TaxAct made it simple to report well being protection tax credit score data.
To assert the HCTC for 2021, once you filed in 2022, you needed to file Type 8885, Well being Protection Tax Credit score, and fasten documentation that confirmed you had been an eligible particular person for the HCTC and that the premiums claimed in your 2021 protection had been paid. In case you electronically filed your federal earnings tax return, you needed to submit the required paperwork with Type 8453, U.S. Particular person Earnings Tax Transmittal for an IRS e-file Return.
To entry Type 8453 within the TaxAct program:
- From inside your 2021 TaxAct return (Online or Desktop), click on Federal. (On smaller gadgets, click on within the high left nook of your display screen, then click on Federal).
- Click on the Different Credit dropdown, click on the second Different credit dropdown that seems, then click on Well being protection tax credit score – [Name].
3. Proceed with the interview course of to enter your data.
The underside line
Type 1099-H may be a factor of the previous, however understanding the way it labored continues to be worthwhile. Bear in mind, for those who ever need assistance navigating some other tax kinds — maybe one other data return like 1099-DIV, 1099-INT, or 1099-NEC — TaxAct has your again. We make the tax submitting course of simple and simple so you may get again to doing the stuff you’d fairly be doing.