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Will the Recovery 2021 updates to the 8962 penalty waiver be included in software TT updates associated to the 2021 march recovery act.

I have to amend. They have not finish processing my return. I started waiting for the IRS to process the date for refund before I amend.   The 8962 has to be included. However, it still does not give back what it takes out for being above the 2020 poverty level something that was included in the March 11 2021 recovery act. When will TurboTax adjust this form so that the monies are not deducted as a result of the Recovery Rebate?

 

 

I need to make sure I have an accurate amendment once they finish processing the one they accepted on 2/11/21 and is still in limbo.

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11 Replies
gloriah5200
Expert Alumni

Will the Recovery 2021 updates to the 8962 penalty waiver be included in software TT updates associated to the 2021 march recovery act.

If you have filed your return and it was accepted by IRS, you should not file an amended return until they finish processing it.

 

There are some things that IRS is just adjusting on the returns and asking that you don't amend your return to correct certain items.

 

Here are a couple of links to sites on irs.gov to check the status of your refund and your stimulus check:

 

Now, with the passage of the American Rescue Plan, IRS is now in the process of determining eligibility for a Third Stimulus Check to be distributed in 2021 based on information on your 2019 and 2020 income tax returns.

The 2021 (Third) Stimulus check will be automatically calculated by IRS and either distributed to those who qualify or not distributed to those who do not.

Here are a couple of IRS links you can check:

 2021 Economic Impact Payment Status Available

Find when and how we sent your 2021 Economic Impact Payment with the Get My Payment tool.

Get My Payment IRS Link

COVID-19 Mail Processing Delays

It’s taking us longer to process mailed documents including:

  • Paper tax returns, and
  • All tax return related correspondence.

We are processing all mail in the order we received it.

Do not file a second tax return or call the IRS.

IRS Where's My Refund Link

Will the Recovery 2021 updates to the 8962 penalty waiver be included in software TT updates associated to the 2021 march recovery act.

Your software defaulted me to "SINGLE" it should be "HEAD OF HOUSEHOLD".  They are taking forever and I do qualify for stimulus under HOH.  I need to update filing status.  This is not my fault. I only noticed after filing.

 

I selected HOH and it switched back to "SINGLE".  The IRS has my 8962 and 1095A 3 weeks now and have not processed my return. Your software has not adjusted the 1095 Subsidy Penalty yet for above % of poverty level waived under recovery act of 2020. I need to amend!!!! 

LenaH
Employee Tax Expert

Will the Recovery 2021 updates to the 8962 penalty waiver be included in software TT updates associated to the 2021 march recovery act.

No. Your filing status would not disqualify you for the stimulus payment (EIP3). You can get the stimulus with any filing status. However, if you marked off that you could be claimed as a dependent on someone else's return, then you would not get your stimulus payment directly and would have to amend your return if you are marked as a dependent, but should not be. 

 

Generally, if you are a U.S. citizen or U.S. resident alien, you are eligible for the full amount of the third Economic Impact Payment if you (and your spouse if filing a joint return) are not a dependent of another taxpayer and have a valid Social Security number (see exception when married filing jointly) and your adjusted gross income (AGI) on their tax return does not exceed:

  • $150,000 if married and filing a joint return or if filing as a qualifying widow or widower
  • $112,500 if filing as head of household or
  • $75,000 for eligible individuals using any other filing statuses, such as single filers and married people filing separate returns.

Payments will be phased out – or reduced -- above those AGI amounts. This means taxpayers will not receive a third payment if their AGI exceeds:

  • $160,000 if married and filing a joint return or if filing as a qualifying widow or widower
  • $120,000 if filing as head of household or
  • $80,000 for eligible individuals using other filing statuses, such as single filers and married people filing separate returns.

Most eligible people will get the third Economic Impact Payment automatically and won't need to take additional action. The IRS will use available information to determine eligibility and issue the third payment to eligible people who:

  • Filed a 2020 tax return.
  • Filed a 2019 tax return if the 2020 return has not been submitted or processed yet.
  • Did not file a 2020 or 2019 tax return but registered for the first Economic Impact Payment using the special Non-Filers portal last year.

You can check the status of your third payment by using the Get My Payment tool.

 

In addition, a lot of taxpayers are in the same situation as you due to the IRS backlog right now. Although The IRS issues most refunds from e-filed returns in about 21 days, some returns take more time to review. In addition, the IRS is processing millions of returns, as well as stimulus checks, and they are doing everything they can to be as prompt as possible. 

 

To find out where your refund is, first check your e-file status. If it's been accepted, you can begin to track your refund at the IRS Where's My Refund? site. You'll need your Social Security number or ITIN, filing status, and the exact amount of your refund to check your status.

 

For some taxpayers, PATH Act requirements and other identity-protection safeguards implemented by the IRS may account for longer wait times.

 

Other things that can delay your refund include, but are not limited to:

  • Liens, back taxes, or refund offsets
  • Errors, inconsistencies, or missing information
  • Identity fraud
  • Form 8379, Injured Spouse Allocation, which can take 11-14 weeks to process

Also, if you chose direct deposit, your financial institution may need another day or two to post the refund to your account, so keep that in mind. 

 

 @slp_921

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Will the Recovery 2021 updates to the 8962 penalty waiver be included in software TT updates associated to the 2021 march recovery act.

This is exactly why I have to correct my status to "HOH" they did not send me a stimulus and I have one dependent I support full time.

KathrynG3
Expert Alumni

Will the Recovery 2021 updates to the 8962 penalty waiver be included in software TT updates associated to the 2021 march recovery act.

1. TurboTax explains why the filing status is adjusted when it is changed. 

2. Be careful; It will cause further delays to file an amended return before the first one is accepted and approved

3. Regarding Form 8962, the law changed, you are correct. However, the IRS makes calculation corrections automatically.

  • See: How will the third stimulus impact me?

    • Advance Premium Tax Credit relief

      The Plan also relieves eligible taxpayers of having to pay back any excess advance premium tax credit they took. If you used any credit to lower your monthly health insurance payment when you applied for coverage in the Health Insurance Marketplace®, you might not have to pay it back under the new law.

      When you enter your 1095-A in TurboTax, we’ll determine your eligibility whether or not you have to pay back any amount.

@slp_921

Will the Recovery 2021 updates to the 8962 penalty waiver be included in software TT updates associated to the 2021 march recovery act.

The return is accepted but it has been 6 weeks since acceptance and 8 weeks since filing and 3 weeks since sending the forms via FAX I printed from the TurboTax 2020 site and NOTHING has been processed. 

 

They have done nothing at ALL.

 

I qualify for stimulus 2020 & 2021 under HOH and I have not amended waiting for the processing and nothing has been done this is the only difference.   This is totally ridiculous. No refund and no stimulus.   No monies. 

 

I am waiting for you software update to correct the 8962 so that I can amend with the missing form &  updated filing status.

Will the Recovery 2021 updates to the 8962 penalty waiver be included in software TT updates associated to the 2021 march recovery act.

When I spoke to the IRS they advised to amend because it takes about 16 weeks and the more I delay the longer it will take for me to resolve my issue. They said they process current year 1st before even going to process any amendments.

 

I sent the 2019 amendment for the same issue with the filing status based on your questionnaire. 

Will the Recovery 2021 updates to the 8962 penalty waiver be included in software TT updates associated to the 2021 march recovery act.


@slp_921 wrote:

The return is accepted but it has been 6 weeks since acceptance and 8 weeks since filing and 3 weeks since sending the forms via FAX I printed from the TurboTax 2020 site and NOTHING has been processed. 

 

They have done nothing at ALL.

 

I qualify for stimulus 2020 & 2021 under HOH and I have not amended waiting for the processing and nothing has been done this is the only difference.   This is totally ridiculous. No refund and no stimulus.   No monies. 

 

I am waiting for you software update to correct the 8962 so that I can amend with the missing form &  updated filing status.


This is the IRS statement concerning the Premium Tax Credit adjustment - https://www.irs.gov/affordable-care-act/individuals-and-families/the-premium-tax-credit-the-basics

 

We’re reviewing the tax provisions of the American Rescue Plan Act of 2021, signed into law on March 11, 2021. Taxpayers who filed a 2020 tax return and reported an excess advance premium tax credit repayment on Line 29 of Form 8962, Premium Tax Credit, should not file an amended tax return only to get a refund of this amount. The IRS will provide more details soon.

Will the Recovery 2021 updates to the 8962 penalty waiver be included in software TT updates associated to the 2021 march recovery act.

Ok - I will include form that I failed to include and will file amendment on Friday if they still have done nothing.

 

The 8962 was faxed 3/8/21 and it has been 3 weeks. Monday it will be a month since faxing. I need to amend to correct filing status to Head of Household .... Confirmed by Tax Advocate and Rep I spoke to at IRS. I would probably need to include the 8962 with the amendment because it should have been attached with the 2020 filing.

 

This is what I was told. I cannot get the stimulus payments without it and I don't have my refund either. :(

Will the Recovery 2021 updates to the 8962 penalty waiver be included in software TT updates associated to the 2021 march recovery act.

The answer makes no sense. The question is when will turbo tax update its program to stop calculating the reconciliation based on form 8962 per the American rescue plan?

Will the Recovery 2021 updates to the 8962 penalty waiver be included in software TT updates associated to the 2021 march recovery act.


@Sgweiss wrote:

The answer makes no sense. The question is when will turbo tax update its program to stop calculating the reconciliation based on form 8962 per the American rescue plan?


The TurboTax software has Not been updated for the Premium Tax Credit adjustment since the IRS has not provided guidance as of this date.

 

This is the IRS statement concerning the Premium Tax Credit adjustment - https://www.irs.gov/affordable-care-act/individuals-and-families/the-premium-tax-credit-the-basics

 

We’re reviewing the tax provisions of the American Rescue Plan Act of 2021, signed into law on March 11, 2021. Taxpayers who filed a 2020 tax return and reported an excess advance premium tax credit repayment on Line 29 of Form 8962, Premium Tax Credit, should not file an amended tax return only to get a refund of this amount. The IRS will provide more details soon.

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