Amend return due to PTC forgiveness?

Forum|Forum|5 years ago
April 24, 2021
1 reply
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I need to amend our 2020 return due to the recent changes regarding premium tax credit forgiveness. Our return was already accepted, and our payment is due to come out of our account on May 17. But now with the changes, we owe less (yay!) but I can't figure out what to do about it!

I'm using TT 2020 desktop download version. My TT program is now showing the updated/corrected amounts, but they're obviously not the same as what I filed. When I open the program and click on "amend a filed return," it asks (on step by step view) where the changes need to be made, and I can't figure out where to go from there.

I guess the problem is that the corrections are already made within my program, but I don't know how to share them with the IRS... hope that makes sense. Please help and thanks!

TurboTax Home & Biz Windows

Best answer by ToddL99

You do not need to amend your tax return claim forgiveness for an excess premium tax credit - the IRS will make the adjustment automatically. If payment has already been made (or scheduled), you will get reimbursed.

See IRS suspends requirement to repay excess advance payments of the 2020 Premium Tax Credit

Taxpayers who have already filed their 2020 tax return and who have excess APTC for 2020 do not need to file an amended tax return or contact the IRS. The IRS will reduce the excess APTC repayment amount to zero with no further action needed by the taxpayer. The IRS will reimburse people who have already repaid any excess advance Premium Tax Credit on their 2020 tax return. Taxpayers who received a letter about a missing Form 8962 should disregard the letter if they have excess APTC for 2020. The IRS will process tax returns without Form 8962 for tax year 2020 by reducing the excess advance premium tax credit repayment amount to zero.

Again, IRS is taking steps to reimburse people who filed Form 8962, reported, and paid an excess advance Premium Tax Credit repayment amount with their 2020 tax return before the recent legislative changes were made. Taxpayers in this situation should not file an amended return solely to get a refund of this amount. The IRS will provide more details on IRS.gov. There is no need to file an amended tax return or contact the IRS.

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ToddL99Answer

Level 13

You do not need to amend your tax return claim forgiveness for an excess premium tax credit - the IRS will make the adjustment automatically. If payment has already been made (or scheduled), you will get reimbursed.

See IRS suspends requirement to repay excess advance payments of the 2020 Premium Tax Credit

Taxpayers who have already filed their 2020 tax return and who have excess APTC for 2020 do not need to file an amended tax return or contact the IRS. The IRS will reduce the excess APTC repayment amount to zero with no further action needed by the taxpayer. The IRS will reimburse people who have already repaid any excess advance Premium Tax Credit on their 2020 tax return. Taxpayers who received a letter about a missing Form 8962 should disregard the letter if they have excess APTC for 2020. The IRS will process tax returns without Form 8962 for tax year 2020 by reducing the excess advance premium tax credit repayment amount to zero.

Again, IRS is taking steps to reimburse people who filed Form 8962, reported, and paid an excess advance Premium Tax Credit repayment amount with their 2020 tax return before the recent legislative changes were made. Taxpayers in this situation should not file an amended return solely to get a refund of this amount. The IRS will provide more details on IRS.gov. There is no need to file an amended tax return or contact the IRS.

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pick4taxes

Level 2

I filed my taxes with TurboTax prior to the IRS announcement on APTC forgiveness. This was back in March. I have read the IRS announcements that no action is required on my part; that the IRS will remove the repayment, recalculate my taxes and refund the difference, if applicable. TurboTax has updated my electronic return on my computer to show that I indeed should be getting a meaningful refund; hopefully the same conclusion the IRS reaches. But, I have not heard a peep from the IRS. Should I have heard something by now? Is there a plana B that makes sense? Or does this ultimately get rectified in my 2021 (filed in 2022) return? Thank you.

Critter-3

Level 15

Acknowledging the IRS backlog, created by Congressional underfunding (you can guess the obstructionist "political party" here, since refund processing is more important to the poorer.)

It is now June 22, 2022 as I write, long after Turbotax "checkbox authority" over my son's return has expired. Yet filing Form 8821 by paper will create an even more onerous backlog. You'd think at least an online APTC refund status check could be automated...

Sorry but the IRS budgets have been reduced every year for more than a decade and the hiring freezes have been exasperated by the covid situation so anything that requires human interaction (like the PTC correction) is taking way too long to process and there is no way to speed it up especially for something that is a "one of" never to be repeated. If you want to complain do it to your congress person as they are the ones hobbling the IRS's ability to service the taxpayers timely.

IRS website for tax return status information - https://www.irs.gov/newsroom/irs-operations-during-covid-19-mission-critical-functions-continue

As of June 10, 2022, we had 11 million unprocessed individual returns which include returns received before 2022, and new tax year 2021 returns. Of these, 1.9 million returns require error correction or other special handling, and 9.1 million are paper returns waiting to be reviewed and processed. This work does not typically require us to correspond with taxpayers but does require special handling by an IRS employee so, in these instances, it is taking the IRS more than 21 days to issue any related refund and in some cases this work could take 90 to 120 days. If a correction is made to any Recovery Rebate Credit, Child Tax Credit, Earned Income Tax Credit or Additional Child Tax Credit claimed on the return, the IRS will send taxpayers an explanation. Taxpayers are encouraged to continue to check Tax Season Refund Frequently Asked Questions.