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A Message to Participants
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Since you are currently receiving benefits from PBGC and have an active MyPBA account, we’d like to share a few important messages to help with your end-of-year planning.
Health Coverage Tax Credit (HCTC)
The Health Coverage Tax Credit (HCTC), a federal tax credit administered by the IRS for health care insurance premiums, has been extended and now expires December 31, 2021. For information about the HCTC, including FAQs and eligibility, visit the IRS Health Care Coverage Tax Credit page.
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IRS Income Tax Form 1099-R
Your PBGC benefit may be taxable depending on your individual circumstances. We’ll provide a Form 1099-R with instructions to assist you with your taxes. Form 1099-R also serves as proof of PBGC payee status for the HCTC.
Your Form 1099-R for benefits paid by PBGC will be mailed to you through the U.S. Postal Service on February 1, 2021.
Your Form 1099-R will also be available to download and print from MyPBA beginning February 2, 2021. To ensure your account is active, we encourage you to log in before you plan to file your taxes.
It’s important to note that while PBGC withholds federal income tax, we do not withhold state taxes. If your state has an income tax, your PBGC benefit may be taxable. Please contact your state tax office with questions.
For additional information, please visit our IRS Income Tax Form 1099-R webpage.
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January 2021 Benefit Payment
If you receive monthly benefits from PBGC through direct deposit, you may have noticed that your payment is deposited early when the first of the month falls on a weekend or federal holiday. January is the exception.
For tax purposes, your January payment must not be distributed in 2020. January 2021 benefit payments made electronically will be deposited on Monday, January 4, 2021.
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