You may claim a credit of 5% of the amount paid for a health benefit plan only if you, or your spouse on a joint return, are not insured under a health benefit plan maintained and funded in whole or in part by your employer or another person's employer. You can't claim this credit if you choose not to participate in a plan maintained and funded by an employer. You also can't use pre-tax deductions from wages through employer-sponsored programs, such as a cafeteria or flex plan, to claim the credit.
Payments to COBRA health plans qualify for this credit if 100% of the premiums are paid by you or your spouse, and are not subsidized or funded by the current or former employer or another person's employer. You can't claim COBRA payments if you choose not to participate in a plan maintained and funded by a current or former employer.
The maximum credit is: