Amending return for IRS $15 interest 1099 and now shows $441 refund for Premium Tax Credit- but received check in the mail already!

[lcubed2004]

I needed to amend my return to add a1099 IRS interest form I received for $15 dollars after I already filed.  I ran the Amend form process and it now shows I am due a refund of $441. After some extensive research, determined it was the Excess Premium Tax Credit (due back due to the American Rescue Plan as of April 9th, 2021).   The problem is, I just got a check in the mail for $441 dollars and I still need to file the amended return for the $15 (1099 INT from the IRS).  My state now also says I owe $10 I'm assuming due to the PTC of $441.  What do I do?  I can't file an amended return for $441 refund when they already sent checks out to refund the tax payers?  There should be a question on the form to ask if you have already received the refund, just like the stimulus checks so it adjusts off the amount it is adding back in.

[Mike9241]

the IRS should have known about that $15 in interest they paid you in 2020 when they sent you that refund. so I would not file an amended federal return. 

you gave no info about your original filing. but likely when originally filed you received too much in PTC. so under the tax laws at that time you had to repay that excess which reduced your refund or resulted in a balance due which you paid.  the tax laws were changed retroactively by the ARP act so that if you received too much PTC  in 2020 you no longer had to repay that amount. for that reason, the IRS issued you the refund and should have taken into a/c the $15 in interest paid to you in 2020. 

since you didn't mention what state, can not tell you how the state would treat that refund of excess PTC.  it should not be income unless you deducted for state purposes the premiums you paid. the $15 would be taxable for state purposes in the year received 

[lcubed2004]

Thank you Mike!  The state is CA and Turbo tax now says I owe $10 when I amend so I am thinking they are taxing the now premium tax credit the IRS just refunded me on the Federal.

So I am thinking I will still need to file an amended return for State, correct?

Thanks again!

[fanfare]

after you amended for the 15 dollars, you and the IRS came up with the same answer, $441.

you don't need to amend.