topic ACA underpayment in Deductions & credits

ACA underpayment

aplegros — Mon, 15 Mar 2021 18:01:44 GMT

Under the recent COVID relief legislation bill that passed, I read that the underpayment of ACA insurance premiums was to be waived this year, which would affect me greatly since I ended up earning more than I predicted to Covered California and now owe a significant premium back.

Re: ACA underpayment

MaryK4 — Mon, 15 Mar 2021 18:16:21 GMT

Sadly, this will not apply until 2021 ACA purchases-

Under the new law, many people who buy their own health insurance directly through the Marketplace will become eligible to receive increased tax credits to reduce their premiums. Starting April 1, 2021, consumers enrolling in Marketplace coverage through HealthCare.gov will be able to take advantage of these increased savings and lower costs.

Re: ACA underpayment

AmeliesUncle — Mon, 15 Mar 2021 18:59:04 GMT

Correct, the repayment of Advance Premium Credit no longer applies for 2020.

The IRS has not given any guidance yet in this regard, and they may need up update some forms. It is possible the whole process to get everything updated and ready could take several weeks. So we all need to be patient.