Form 8885 - Health coverage credit

[oceanlovin'ea]

Does anyone know how this works?

Have a client whose job terminated because they closed the plant here that he worked in.He paid Cobra coverage for him and his wife .
He is retirement age and did go on Medicare but wife is not.

There are a list of questions and I am not sure how to answer some of the questions or what they mean. What is an Eligible Trade Adjustment Assistant (TAA), alternative TAA or Pension benefit guaranty corp (PBGC) recipient?
Another requirement is NOT entitled to Medicare part A or Enrolled in Medicare part B.

He was mostly paying this for his wife. She was not entitled or enrolled. Can it be claimed for one spouse and not the other?

Any help will be appreciated.

Linda. EA

[Peachie]

Hi Linda,

I can probably help you with this. I will go over your quetions and give you an answer in just a bit.

Peachie

[Peachie]

Here's my response and a link

Does anyone know how this works?

Have a client whose job terminated because they closed the plant here that he worked in.He paid Cobra coverage for him and his wife .
He is retirement age and did go on Medicare but wife is not.

Most people losing their jobs are eligible for COBRA.

There are a list of questions and I am not sure how to answer some of the questions or what they mean. What is an Eligible Trade Adjustment Assistant (TAA), alternative TAA or Pension benefit guaranty corp (PBGC) recipient?

A. The TAA relates to people on unemployment with some other qualifiers.
ATAA-Alternative trade adjustment-relates to unemployed workers with hard to transfer skills. PBGC-this one relates to me, and deals with pensions taken over by the government. When I lost my job and went under COBRA, The HCTC subsidized 65% of my health insurance. Once the stimulus was enacted. 80% was subsidized.

B. The HCTC is a unit of the government that helps to subsidize COBRA and other health plans but you must fall into one of the categories shown above. You can have the government cover the % of coverage in advance or you can wait until you file your tax return for the new year and use form 8885 to get your 65%/80% when you file your taxes.

Another requirement is NOT entitled to Medicare part A or Enrolled in Medicare part B.

He was mostly paying this for his wife. She was not entitled or enrolled. Can it be claimed for one spouse and not the other?

C. I am not sure she would qualify if he doesn't, but I'm not sure.

D. Here's a link: http://www.irs.gov/individuals/artic...3,00.html-just copy/paste this into your browser address bar.

Any help will be appreciated.

Linda. EA

E. If I can assist you further it's ok to e-mail me at: peachie1000@hotmail.com. If the Sysop removes the e-mail address, I'm not sure it's allowed, send me a PM. Hope this helps.

Peachie

[oceanlovin'ea]

have to leave now

I have to leave now and so I will contact you tomorrow, Peachie

I give you the evening off. lol.

Linda, EA

[Peachie]

Thanks for the evening off :-))

I have to leave now and so I will contact you tomorrow, Peachie

I give you the evening off. lol.

Linda, EA

Linda. I appreciate it.