1099-h

[Gary]

A client called me today and said her boy friend received a 1099-H. He is not working, going to school which is funded by the goverrnment.

I never heard of a 1099-H but found instructions on the IRS web site.

Can anyone help me to understand what it is and if he has to file anyting. He has no income.

Thanks.

Gary

[Bees Knees]

The 1099-H has to do with the Health Coverage Tax Credit.

See TTB, page 11-8 for a summary of the credit. You use Form 8885 to take the credit.

[Gary]

Thanks

Thanks Bees Knees, for the reference.

I had looked in TTB for 1099-H and it wasn't in the index. I looked at the instructions for the 8885 and looked at the IRS Pub. These documents (including TTB) all state that the credit if for someone who is an eligible trade adjustment assistance (TAA) recipient or a Pension Benefit Guaranty Corporatioin pension recipient, but never really defines what these are. I did find a statement that a TAA is someone that was "injured" by an overseas company, which I think means - he was laid off his job because the contract went to a foreign company. But what kind of assistance does he receive? Is it taxable? What this has to do with the credit, and how the 1099-H reports advanced health insurance charges is not clear at all.

Does anyone know what all this means?

Thanks,

Gary