This article will assist you with generate Form 8885, Health Coverage Tax Credit, in the Individual module of Lacerte for tax year 2021. This credit was not extended for tax year 2022.
To generate Form 8885 in the program:
- Go to Screen 38.2, EIC, Residential Energy, Other Credits.
- Scroll down to the Health Insurance Credit (8885) section.
- Enter the Qualified health insurance premiums, if applicable.
- Enter the Archer MSA and HSA distributions used to pay qualified premiums, if applicable.
- Locate the Month(s) Taxpayer is Eligible and Elects to Take Health Insurance Credit subsection.
- Enter a 1 in any month fields (1=January, 1=February, etc.) in which the taxpayer was eligible and elected to take the Health Insurance Credit.
- Enter any other applicable fields in this section.