1095-A and 3985 online filing

[ysharma]

Hi,

Hi, I am filing my taxes, and I have 1095 A for federal tax, and 3895 for state tax. 

After adding those forms, it says I need to upgrade to deluxe version.

1. Can I file them through Turbotax Online with the Free file version, or do I have to separately print both the forms and send them to IRS?

2. Do I need to use Deluxe version for the above mentioned forms for filing them online, and paying the extra premium credit back for federal and state taxes?  

3. Also, Turbotax showed that there has been some amendment in the American Rescue Plan according to which one would not have to payback the excess premium tax credit. How do I know whether I am eligible for it?

 Please guide about this as it is very confusing.

[MaryM428]

You will not have to upgrade if you are are using the TurboTax Free File.  This is different from TurboTax Free.Edition which will prompt you to upgrade. When you login using the Freefile link you will not be asked to upgrade to Deluxe. It will handle your 1095-A and your state filing at no cost to you if you meet the income requirements.  The FreeFile will e-file your returns and forms.

The premium tax credit forgiveness is not yet available in TurboTax, but that is being worked on by our programmers and should be available soon.  Do not file your return until the updates are installed.  You will be eligible if you were 

When the premium tax is removed from your return, your refund will increase or you amount owed will decrease by that amount.

If you meet the qualification below, then sign into Free File with you current login and password.  If you do not meet these qualifications, you will need to upgrade to TurboTax Deluxe.

Qualifications

To qualify for free 2020 federal and state tax returns through the IRS Free File Program delivered by TurboTax, you just need to meet one of these requirements:

• Your 2020 household AGI is $39,000 or less;
• You qualify for the Earned Income Tax Credit (EITC); or
• In 2020, you served as active duty military (including Reservists and National Guard) with a maximum AGI of $72,000, and you have a military-issued W-2.

[ysharma]

Hi

 I have to pay some money back from last year, because my income was more than the estimated income I had quoted according to my income when I took the health insurance last year.

Does premium tax forgiveness mean that I would not have to pay back that amount?

Also, I had not received any unemployment benefits last year. though I did not have a job for those two months I took the insurance from marketplace. I receiving unemployment benefits  necessary to have for IRS to forgive my premium tax credit?

Could you please let me know more details about what is the law IRS has passed, and what is expected under it? More clarity would help.

Thank you

[MaryM428]

The American Rescue Act has suspended the premium tax payment pay back for 2020 for everyone.  You do not need to have been on unemployment.  TurboTax is still waiting for guidance from the IRS so that the programs can be updated to eliminate that pay back.  

We do not have a date yet when TurboTax will be updated.  You will not have to pay back the premium tax credit.  Do not file your return until these changes have been made in TurboTax.

American Rescue Plan

[ysharma]

Hi,

Thank you for your reply. Could you please confirm that the tax filing date for both federal and state taxes has been postponed to May17? I want to make sure that I am not missing the deadline, while waiting for Turbo Tax to be updated.

Also, I am on H1-B and I am not an American citizen. Would I still be able to avail the benefit of not having to pay back the premium tax credit?

Please let me know.

Thank you

Best

Yo**bleep**a

[MaryM428]

The California filing deadline is the same as the federal deadline.  Both are May 17, 2021. The payback of the premium tax credit is forgiven for anyone who had a marketplace plan in 2020.

CA 2020 filing deadline

[ysharma]

Hi Mary,

Thank you fore the reply. I checked back on the portal regarding the premium tax credit repayment. 

1. I have not received any notification whether Turbo Tax has been updated for this yet. Has it been?

2. Even if the Turbo tax is updated and premium tax credit is forgiven, and I don't think I am eligible for Turbo tax free file, because my income is above the tax income bracket mentioned in the eligibility criterial for that, will I still have to upgrade to Turbo tax to report this 1095A and premium tax credit?

3. Will I have to purchase deluxe service for both federal and state taxes? Please let me know.

I am checking in to make sure I am aware, but don't miss the deadline as well.

Thank you

[ysharma]

Hi Mary,

Thank you fore the reply. I checked back on the portal regarding the premium tax credit repayment. 

1. I have not received any notification whether Turbo Tax has been updated for this yet. Has it been?

2. Even if the Turbo tax is updated and premium tax credit is forgiven, and I don't think I am eligible for Turbo tax free file, because my income is above the tax income bracket mentioned in the eligibility criterial for that, will I still have to upgrade to Turbo tax to report this 1095A and premium tax credit?

3. Will I have to purchase deluxe service for both federal and state taxes? Please let me know.

I am checking in to make sure I am aware, but don't miss the deadline as well.

Thank you

[DaveF1006]

Yes, you will need to upgrade to Turbo Tax Deluxe and will need to purchase the state separately. It is all part of the same product. As of this moment, Turbo Tax has not been updated for the Premium Tax Credit forgiveness but we anticipate this will be updated as soon as possible.

[ysharma]

Hi Dave

Even after Turbotax is updated, will I still have to purchase and file with Deluxe services? Or is there no need to purchase it after the system is updated to forgive premium tax payback?

Thank you

Yo**bleep**a

[ysharma]

Hi Dave

Thank you for your reply. But how will I know that turbotax has been updated to forgive premium tax credit? Will I get an email or notification?And how much does it cost to purchase for state tax?