What is a Health Coverage Tax Credit?

The Health Coverage Tax Credit (HCTC) is designed specifically to assist individuals with the cost of health insurance premiums. This credit is available for certain taxpayers, particularly those who are receiving Trade Adjustment Assistance (TAA) or who are eligible for Pension Benefit Guaranty Corporation (PBGC) pensions, helping to alleviate some financial burdens related to maintaining health coverage.

In contrast to the other options, which address different types of expenses, the HCTC focuses solely on health insurance costs. It is not related to educational materials, mortgage interest payments, or business travel expenses, underscoring its specialized purpose in supporting healthcare access for eligible taxpayers.