Premium tax credit

[bw269]

With the passage of the American Rescue Plan Act of 2021 and signed into law on 3/11/21.  Are we still required to prepare the Premium tax credit form?  Preparing my taxes utilizing the Form 1095-A will result in me owing additional tax.  The new changes now appear to say individuals, for tax year 2020, would not be required to reimburse the government for underpayment of the monthly insurance premium.  The IRS is advising individuals who have already submitted their tax return, not to submit an amended return to receive a credit for this additional tax paid.       If we have not submitted the return, should we just not input info from the form 1095-A?  

[AmeliesUncle]

Indications are that the IRS is updating the form to reflect the new law.  So you should still file it, but you will need to wait a couple of weeks until everything is ready.

[DawnC]

As mentioned above, waiting is your best option here.  If you have marketplace health insurance and receive a 1095-A but don't include it on your tax return, the processing of the return gets halted an IRS notice is automatically generated and sent to you.   The notice basically says that you need to send in the 1095-A and Form 8962.   So, if you have a 1095-A and file without it, you are almost guaranteeing to delay the processing of your return.   

The filing deadline has been extended to May 17th this year in an effort to allow tax software providers to update their software for the changes in legislation - there are a lot.  You should definitely include the 1095-A.   TurboTax automatically creates Form 8962 which is required to reconcile the Premium Tax Credit.   Right now, since the changes have not yet been implemented, and as you stated, your tax liability is showing higher than it actually is.   Once the program gets updated, you will still need Form 8962, but it will be calculated correctly and your tax liability will be lower.   Do not file without the 1095-A and associated Form 8962.  Instead, wait until TurboTax is updated to correctly calculate the Premium Tax Credit.