Should I file now or wait to file? I am self employed and got a notification at the "review" portion of TurboTax that "Your new tax break might affect how you file".

[brittni123]

This is what the rest of the page said for context:

"You get additional tax relief as part of the American Rescue Plan because you told us you took an Advance Premium Tax Credit. We're working with the IRS on changes required for those who got this tax relief and were self-employed last year. We recommend you wait to file while we work on making these changes.

Here’s what you can do:

- Wait to file while we work to make updates on your federal return. We’ll save your return and notify you by email once everything’s ready. We expect to have everything updated by the end of April at the latest.
- Or file now before all updates have been applied. This could mean you’ll have to amend later."

[AnnetteB6]

Since the deadline for filing and paying your taxes for 2020 has been extended to May 17, 2021 there is no harm in waiting a couple of weeks for the updates to be completed.  

Filing your return one time versus filing now and then amending is a much simpler and less time-consuming process.  However, the ultimate decision is yours depending on your personal situation.

[mtnwest]

Turbo Tax is still telling me to wait to file for the same reason.  That they expect to have everything updated by the end of April at the latest.  Well, it is May.  Does Turbo Tax have another update for this yet?  

[JotikaT2]

Can you clarify what update you were waiting for?  Most updates have been made. 

Please see the link below if you are referring to state updates in regards to unemployment income.

State updates to unemployment

If you are using the desktop version of the program, go ahead and make sure your program has been updated.  

1. Select the Online menu at the top
2. Then select Check for Updates.

@mtnwest

[brittni123]

Hello!

I just logged back in to check my tax filing status in Turbo Tax and in the review portion I am still getting this message so I'm unsure if I should still wait to file or not:

"Your new tax break might affect how you file

You get additional tax relief as part of the American Rescue Plan because you told us you took an Advance Premium Tax Credit. We're working with the IRS on changes required for those who got this tax relief and were self-employed last year. We recommend you wait to file while we work on making these changes.

Here’s what you can do:

• Wait to file while we work to make updates on your federal return. We’ll save your return and notify you by email once everything’s ready. We expect to have everything updated by the end of April at the latest.
• Or file now before all updates have been applied. This could mean you’ll have to amend later."

[mtnwest]

I am receiving the same message as brittni123:

"You get additional tax relief as part of the American Rescue Plan because you told us you took an Advance Premium Tax Credit. We're working with the IRS on changes required for those who got this tax relief and were self-employed last year. We recommend you wait to file while we work on making these changes.

Here’s what you can do:

- Wait to file while we work to make updates on your federal return. We’ll save your return and notify you by email once everything’s ready. We expect to have everything updated by the end of April at the latest.
- Or file now before all updates have been applied. This could mean you’ll have to amend later."

It has nothing to do with unemployment.  It is self-employment and the ACA.  I have checked for updates and my version is up to date.

[Dunk4]

I am still getting the same message. If the updates were not done by the end of April, they should update the message to give a new estimated completion date.

[DawnC]

The ACA waiver of advanced premium tax credit is updated in TurboTax.  However, the Self-Employed health insurance deduction with an ACA plan is not up to date.   You can either wait for TurboTax to be updated or use the workaround in the links below.

Did you try the work-around described here -  Correct Line 16 for SEHI and adjust Schedule A.      Further down that post, I added a few more details regarding the linked 1095-A.    Try unlinking the 1095-A from your Schedule C.   This will create a credit on Schedule A that you can remove.   Then enter the SEHI deduction in the business expense section - enter the amount you actual paid and that amount will show up on Line 16 (see images below to see where to enter).   Hope this helps!      @mtnwest