Before $10,200 unemployment tax break thing, I already filed my 2020 tax return with small amounts of excess advance premium tax credit. Now, the excess APTC becomes zero and also I am eligible for claiming net premium tax credit due to reduced AGI after $10,200 unemployment tax break applied.
I know that people with excess APTC don't need to file an amended tax return because IRS is going to waive excess APTC and also refund the amount (if already paid). But, I was not able to find clear answer for my situation. For my situation that I became eligible for claiming net premium tax credit from excess APTC, should I file amended return because it is claiming credit? Or, is IRS going to adjust this for me and refund claim amount?
Please advise. Thank you.
Please see this answer from bradenleg100
Yep, the folks that opted for the full monthly subsidies in 2020 are absolved from paying back the credit if they fell out of the PTC range, but the IRS has not yet addressed those taxpayers that chose to pay full monthly health premiums and instead take the tax credit at year end. There are very few people that fall into that bucket, so am assuming it has not come up yet. Hopefully, guidance is provided soon.
Thanks for your response. But, I am not really following this. I did not choose to pay full monthly health premiums to take the tax credit at year end.
I am just claiming some credits due to reduced MAGI. I asked if I have to file amended return in order to claim Net Premium Tax Credit (form 8962 line 26) in the situation that I become eligible for the credit due to reduced MAGI after $10,200 unemployment tax break..
I think you will have to file an amended return, but I'm not 100% sure. However, if you do have to file an amended return, you should not file it until after the IRS has made its adjustments and you have gotten the additional refunds. So wait until you get the refunds for the unemployment exclusion and the excess APTC. Then, if the IRS did not give you the net PTC, you can file an amended return at that time to get it.
File the amended return if you already received your refund. If you have not received your refund, wait and see if the IRS includes the difference.
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wait for the IRS to process the unemployment compensation deduction, they may adjust for the proper PTC. However, I think this is something the IRS should be able to adjust for without the need to file an amended return.
from the IRS 4/9/2021
If a taxpayer paid an excess APTC repayment amount when they filed their return with Form 8962: Individuals in this situation should not file an amended tax return to get a refund of this amount. The IRS is taking steps to reimburse taxpayers who filed Form 8962, reported, and paid an excess advance Premium Tax Credit repayment amount with their 2020 tax return before the recent changes made by the American Rescue Plan Act of 2021. Individuals in this situation should not file an amended return solely to get a refund of this amount. The IRS will provide more details soon