When will turbo tax update their soft ware to reflect American Rescue Plan effects on 2020 taxes and repayment of subsidies for people who went over the income limit?

[dpconley]

I am waiting to file. I went over the federal income threshold and would take a big hit if I had to pay back my subsidy. I believe the rescue plan includes a one-time provision for the 2020 tax year so I won't have to pay it back

[DanaB27]

TurboTax is working on updating their software to reflect American Rescue Plan effects.

If you are talking about unemployment payments.  Up to $10,200 of unemployment compensation paid in 2020 will be excluded from income. Please see IRS New Exclusion of up to $10,200 of Unemployment Compensation for details.

Please see Do I need to file a federal return this year? for additional information.

[milucarelli]

how will we know when Turbo tax has the update available to file amended returns?

[SamS1]

The amend function in TurboTax will be available Mid-Late March.  After the IRS or states accept a customer’s return, the customer may need to amend it using the IRS Form 1040-X or a form or process specific to their state. (Each has its own requirements.) The federal Form 1040-X, Amended U.S. Individual Income Tax Return, and most state forms for amending tax returns have not yet been released. When they become available, we’ll update TurboTax Desktop, TurboTax Online, and TurboTax Mobile App. For now, customers will get a message that the amend experience isn’t available and they can check back later. We do not anticipate amendment forms being ready till Mid to Late March.

If this is for a previous year and you need to do an amended return. Go to you tax home then scroll down to "Your tax returns and documents" then show. Select the year in question then the amend return in the right column. Follow the steps to amend a previous year's return.

[dpconley]

This question is not about unemployment income. It is about other unexpected income that has put us over the ACA income threshold for Premium subsidies and would require us to pay back our subsidies if it wasn't for the passage of the American Rescue Act.

[SamS1]

You basically have two options: You can continue to file the return now. If you do this, you may need to amend in order to exclude the Advance Premium Tax Credit repayment. Or, you can wait until the IRS gives guidance to file your return. We are not sure when that will happen, but hope to hear something within a week. 

I would recommend waiting until the product is updated with the Advance Premium Tax Credit to file. This may be a good option for you if you owe and the new provisions would result in a refund.