It appears that Turbo tax has not updated the software to reflect the ARP law that relieves the need to payback APTC . I am on the edge of the cliff at that would require full payback. If I fund an IRA it will bring me below the threshold but that will make my cashflow tight! I would rather fund my Roth if I have the cash.
How can I be notified when turbo tax updates the software for this?
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.
I have not filed my taxes yet because I am waiting for the APTC payback requirement to be updated.
How will I know when Turbo tax has updated the software?
There's no update yet unfortunately, and there isn't an email signup. TurboTax has to wait for guidance from the IRS.
@cbinharmony @ReneeM7122 @JamesG1 Health policy analysts say there is no cliff for forgiveness, as the APR text wipes out clawback for all. Waiting for Intuit to recognize this and update the software to reflect this. See more: https://www.healthaffairs.org/do/10.1377/hblog[phone number removed]37/full/
That reply, from JamesG1, while being a good point, fails miserably to answer the question.
The reply from the other Employee Tax Expert is better, but somewhat vague. It also highlights a failure of TurboTax/Intuit, who should be giving an ETA and have a text/email system to notify users as soon as such a critical update is implemented.
Hire and fairly compensate competent staff to answer questions from your paying customers, TurboTax.
The issue is not a willingness to be direct.
The IRS has not issued any guidance on the retroactive tax law passed March 11, 2021.
TurboTax is a tax software company and it would be inappropriate for them to implement anything until the IRS acts. TurboTax customers, including the ones filing completely for free, will have 100% confidence in the accuracy and compliance with tax law.
While we all wait for the IRS, since they are also tasked with issuing millions of checks and prepare to issue monthly child tax credit checks, be assured that the IT team is working diligently on all aspects of the new law and implementing the changes to state tax, as well. When the IRS does release guidance, TurboTax will be ready.
To see the IRS commentary: The Premium Tax Credit - The Basics.
That link is useless as it simply re-gurgitates the IRS posting from March 12th which basically says "Tough! We haven't had chance to look at it and formulate a plan. Send us a return and maybe we'll refund the APTC repayment sometime later this year." Well there are quite a few who do NOT want to wait until "later this year" to get back money they should NOT have sent in the first place.
Why can't a entry on Form 1040 Schedule 2 Lin 8c be made which reverses the automatic calculation that Turbo Tax makes? Same routine as the UEC entry?
"Why can't a entry on Form 1040 Schedule 2 Lin 8c be made which reverses the automatic calculation that Turbo Tax makes? Same routine as the UEC entry?"
As everyone above has noted, if would be foolish to implement changes to the TurboTax software before knowing HOW the IRS wants the changes implemented.
TurboTax (like other software vendors) has to wait for guidance from the IRS on how to deal with all the items that are impacted by this change in the law.
For example, taxpayers who have to repay excess Premium Tax Credit are normally allowed to apply this amount to the Self-employment health insurance deduction on Schedule 1 (1040). Will that still be true when the IRS releases its guidance? TurboTax does this transfer automatically, so we need to know if that will change.
And the values of the Self-employed health insurance deduction and the Self-employed deduction for SIMPLE, SEP, and other retirement plans have a peculiar interaction such that an increase in one may decrease the other.
And there are other situations in which eliminating the PTC repayment will have unpredictable results.
So TurboTax is not doing nothing, but it would be foolish to make code changes and do all the testing, just to find out that the guidance was different what we thought it would be.
We will make the changes and release them as soon as practicable. We are impatient, too, to find out what the guidance will be.
Congress, the IRS, and the states have been "moving the goalposts" nearly daily since the beginning of the year. It is impossible to do effective planning when the end zone is being moved around constantly.
It would be the height of foolishness to make changes that break as many returns as they "fix".