I am also confused by how TurboTax implemented the Relief Act change of not requiring repayment of APTC (Advanced Premium Tax Credit) for 2020. The update is counting any overpayment of APTC as reimbursed medical expense on line 2b of the Medical Expenses Worksheet which ends up with a lower amount of medical expense on Schedule A Line 1 by the amount of the excess APTC.
While this does appear to comply with the instructions for Schedule A (Pub 502 - "You can't include in medical expenses the amount of health insurance premiums paid by or through the premium tax credit. You also can't include in medical expenses any amount of advance payments of the premium tax credit made that you did not have to pay back."), it does not seem consistent with the IRS decree referenced above which says that if someone has already filed a return before this decree on APTC that the IRS will remove any amount from 1040 Schedule 2, Line 2 ("The IRS will reduce the excess advance Premium Tax Credit repayment amount the taxpayer reported on their 2020 Form 1040 or Form 1040-SR, Schedule 2, Line 2, and Line 29 of Form 8962 to zero and process their return. There is no need to contact the IRS. If a taxpayer receives a IRS letter about excess APTC for tax year 2020, they should disregard the letter.") It mentions nothing about them adjusting Schedule A.
Based on my reading of these various components, it looks like I would have been better off filing my return before any of these updates were made by TurboTax and then waiting for the IRS to send me a check for my overpayment of APTC.
I know that this has been a difficult year due to the last minute and retroactive tax code changes, but honestly, I am about ready to give up.
