topic 2020 payback of Affordable Care Act tax credits ??? in Deductions & credits

2020 payback of Affordable Care Act tax credits ???

sirwmshamong2 — Mon, 15 Mar 2021 13:57:29 GMT

From the 3/9/21 edition of the Philadelphia Inquirer, page A7 - "The
( 2021 Stimulus ) bill also relieves people of
having to pay back ( Affordable Care Act ) tax credits they received
in 2020 if their income ended up higher than they estimated
during enrollment — a problem analysts say will be common
for marketplace shoppers whose income was unpredictable and
fluctuated significantly during the pandemic."

This is great news.

For me, I filed and submitted by 2020 taxes in February 2021 using Turbo Tax Premier desktop. In my case, my income for 2020 was over the 401% poverty limit by just a small amount.

So, Turbotax told me I had to repay ALL of my ACA credits.

So, instead of getting a roughly $3k refund, I had to pay the IRS a LARGE amount of money to pay back the credits. I wrote the check, and put it in the mail, and the IRS has cashed the check.

So, now, after the 2021 stimulus bill passed in March, I learn from the newspaper article that I am entitled to get all of money I paid to the IRS back. How is Turbotax going to help me get this money back from the IRS and into my own account ?? ( again, this is a LARGE amount of money, so ignoring this will be foolish for me to do... )

thanks

Re: 2020 payback of Affordable Care Act tax credits ???

SweetieJean — Mon, 15 Mar 2021 14:06:02 GMT

TT cannot do anything until the IRS issues procedures for this, as well as all the other provisions of the new tax law. See this, and stay tuned.

IRS Statement - American Rescue Plan Act of 2021 | Internal Revenue Service

Re: 2020 payback of Affordable Care Act tax credits ???

sirwmshamong2 — Tue, 06 Apr 2021 12:06:19 GMT

any update on this topic ( 4/5/2021 ) ??

Re: 2020 payback of Affordable Care Act tax credits ???

DianeW777 — Tue, 06 Apr 2021 12:35:57 GMT

The IRS will do the reconciliation once they have the procedure in place. See the information below and continue to check the link for the most up to date information.

Per the IRS Page - Reconciling Advance Premium Tax Credit:

We’re reviewing the tax provisions of the American Rescue Plan Act of 2021, signed into law on March 11, 2021. Taxpayers who filed a 2020 tax return and reported an excess advance premium tax credit repayment on Line 29 of Form 8962, Premium Tax Credit, should not file an amended tax return only to get a refund of this amount. The IRS will provide more details soon. For the latest updates, check IRS.gov/coronavirus.

Re: 2020 payback of Affordable Care Act tax credits ???

sirwmshamong2 — Sat, 24 Apr 2021 11:57:32 GMT

as of 4/24/21,

I see this link:

https://www.irs.gov/newsroom/irs-suspends-requirement-to-repay-excess-advance-payments-of-the-2020-premium-tax-cr[product key removed]ing-net-premium-tax-credit-must-file-form-8962

and this link:

https://www.irs.gov/newsroom/more-det[product key removed]es-for-taxpayers-who-received-advance-payments-of-the-2020-premium-tax-credit

Each of these links say, in effect, just wait - do not file an amended return. The IRS will get you back you money "soon".

Nuts... This is not a comfortable position to be in - waiting for the IRS to send you money. For me, this is more than $10,000.

Re: 2020 payback of Affordable Care Act tax credits ???

sirwmshamong2 — Sat, 24 Apr 2021 12:00:24 GMT

I notice that on 4/24/21,

when I started my 2020 Turbo tax on my desktop,

this version of Turbo Tax ( 20.000.1727 ) recalculated my tax so that the need for form 8962 no longer exists.

The TurboTax shows that I now get a refund instead of having to pay big money...

( just fyi )

Re: 2020 payback of Affordable Care Act tax credits ???

ThomasM125 — Mon, 26 Apr 2021 19:54:26 GMT

The change in law that allowed you to keep your excess premium tax credit amount was put into effect just recently, so when you filed your tax return it was accurately stated. TurboTax has since been updated to comply with the new law.

Re: 2020 payback of Affordable Care Act tax credits ???

sirwmshamong2 — Tue, 11 May 2021 11:13:11 GMT

I received my ( large ) refund check from the IRS on 5/10/2021.

I did not have to contact the IRS for this check - it just appeared.

-- case closed --