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Level 3

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When will Turbo Tax support the The American Rescue Plan Act waving of owed ACA tax credits for 2020?

Forum|Forum|5 years ago
March 15, 2021
25 replies
152 views

From Maryland Healthcare Connection.

The American Rescue Plan Act that just passed in Congress includes important details about your 2020 taxes.

If you have not filed your taxes yet

If you owe money because you received too much in tax credits in 2020, you will not have to pay the money back. Repayment of any extra tax credits received in 2020 is forgiven. However, you must still file and reconcile your taxes to qualify. This applies to anyone who owes money back, regardless of income.

It is likely that the IRS, local tax preparers and tax software programs have not yet applied this change to their systems. You may be told you need to repay tax credits you received, even though you do not.

Maryland has extended the state tax deadline to July 15, but the IRS has not changed the federal tax filing deadline of April 15.

TurboTax Self Employed Online

Best answer by DawnC

Yes, we'll support the extended filing date for state returns. As of now, the federal deadline is still 04/15. TurboTax is being updated to reflect the changes below, but we don't have a date to give as it is unknown when the changes will be finalized. The American Rescue Plan makes significant changes to bolster the ACA and improve marketplace access and affordability by:

Extending ACA subsidies to higher-income people who do not currently qualify for 2021 and 2022;
Increasing ACA subsidies for lower-income people who already qualify for 2021 and 2022;
Providing maximal ACA subsidies for individuals that receive unemployment benefits in 2021; and
Preventing taxpayers who misestimated their income in 2020 from having to repay excess premium tax credits at tax time.

sabremanAuthor

Level 3

Also what about the extended deadline for Maryland State taxes?

DavidD66

Alumni - Intuit

The IRS is reviewing implementation plans for the newly enacted American Rescue Plan Act of 2021. Additional information about a new round of Economic Impact Payments, the expanded Child Tax Credit, including advance payments of the Child Tax Credit, and other tax provisions will be made available as soon as possible on IRS.gov. The IRS strongly urges taxpayers to not file amended returns related to the new legislative provisions or take other unnecessary steps at this time.

The IRS will provide taxpayers with additional guidance on those provisions that could affect their 2020 tax return, including the retroactive provision that makes the first $10,200 of 2020 unemployment benefits nontaxable. For those who haven't filed yet, the IRS will provide a worksheet for paper filers and work with software industry to update current tax software so that taxpayers can determine how to report their unemployment income on their 2020 tax return. For those who received unemployment benefits last year and have already filed their 2020 tax return, the IRS emphasizes they should not file an amended return at this time, until the IRS issues additional guidance.

If you’d like to be updated when the information on the new unemployment benefits becomes available, please click on the following link:

How do I get the new unemployment benefits if I’ve already filed my taxes?

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

sabremanAuthor

Level 3

Thank you for the reply but I don't see anything about not having to pay owed 2020 ACA Tax Credits.

MaryM428

Level 11

Maryland has extended its tax filing and payment deadline to July 15 as it weighs tax changes made by the federal $1.9 trillion stimulus law and the state's own coronavirus relief package enacted last month.

Federal deadline for 2020 is still April 15, 2921.

sabremanAuthor

Level 3

Thank you. Will Turbotax support that extended file date?

DawnC

Answer

Employee Tax Expert

Extending ACA subsidies to higher-income people who do not currently qualify for 2021 and 2022;
Increasing ACA subsidies for lower-income people who already qualify for 2021 and 2022;
Providing maximal ACA subsidies for individuals that receive unemployment benefits in 2021; and
Preventing taxpayers who misestimated their income in 2020 from having to repay excess premium tax credits at tax time.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

JRH47

Level 2

If I've already filed my taxes and paid in money to reconcile overpaid premium tax credits for previous year, will I be able to amend my taxes to get a refund on that since the ARP Act is waiving that? Will I receive a corrected 1095-A?

Hyperbeast02

Level 2

The system still hasn’t been updated!! When will it be?? You said it would be done by the end of March and it’s now April!!

DoninGA

Level 15

@Hyperbeast02 wrote:

The system still hasn’t been updated!! When will it be?? You said it would be done by the end of March and it’s now April!!

The unemployment compensation exclusion was updated across all TurboTax platforms, online and desktop, on 03/26/2021.

The exclusion is reported on Schedule 1 Line 8 as a negative number. The unemployment compensation received is on Line 7 of Schedule 1. The result flows to Form 1040 Line 8.

Using the online editions - Click on Tax Tools on the left side of the screen. Click on Tools. Click on View Tax Summary. Click on Preview my 1040 on the left side of the screen.

The Premium Tax Credit adjustment was updated across all TurboTax programs, online and desktop, on 04/08/2021

Go to this IRS website for information on the PTC adjustment - https://www.irs.gov/newsroom/irs-suspends-requirement-to-repay-excess-advance-payments-of-the-2020-premium-tax-credit-those-claiming-net-premium-tax-credit-must-file-form-8962

If using the TurboTax desktop editions -

Update your software. For a Windows based PC, click on Online and Check for Updates.

The current version is 020.000.1694. Click on Help>About TurboTax>Version