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Get your taxes done using TurboTax
I filed my taxes on 3/2 and qualified for an $11,300 Premium Tax Credit for 2020 and my total refund was $14,600. On 3/25, i went into my Turbo Tax account and my refund was reduced to $3300 and my Premium Tax Credit was removed. This happened because our income was within the range to be eligible for the Premium Tax Credit, however, when the $10,200 Unemployment Exclusion was updated in the system, it dropped our MAGI below the threshold and put us ineliegible for the Premium Tax Credit. This was not the intent of of the Unemployment provision and because it only affects a small population of taxpayers , i.e., those that had unemployment, had income that was $10,200 or less above the FPL and chose to take the Premium Tax Credit at the end of the year instead of monthly subsidies, this unintended consequence was likely not discussed. From my conversation with the IRS, the Unemployment tax break is not a mandatory deduction, therefore there should be an option for those to not take the deduction if it doesn't benefit them. Turbo Tax does not let you exclude the Unemployment deduction, so you would be forced to file a paper return and not take the $10,200 Unemployment exclusion.