Excess Advance Premium Tax credit - Tax liability

[skunche]

Modified AGI increased slightly (above 400% of federal  poverty level) and as a result Turbo Tax computed entire Excess Advance Premium Tax credit received as Tax due.  Is the repayment of excess Premium Tax Credit waived for 2020 in "THE AMERICAN RESCUE PLAN ACT 2021"? 

Could I consider "Excess Advance Premium Tax credit received" as additional medical insurance premiums paid for out-of-pocket and claim in medical expenses (if needed)? This is like I never received Premium Tax credit  but paid medical insurance premiums entirely out-of-pocket.

[skunche]

Appears TurboTax transfers "excess  advance payment of premium tax credit" in IRS Form 1095-A and "Medicare Part B premiums deducted from your benefits" in FORM SSA-1099 to Medical work sheet and Schedule A. However any Medicare Part B premiums that I paid out-of-pocket don't seem included in FORM SSA-1099.

[DoninGA · Accepted solution]

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@skunche wrote:

Appears TurboTax transfers "excess  advance payment of premium tax credit" in IRS Form 1095-A and "Medicare Part B premiums deducted from your benefits" in FORM SSA-1099 to Medical work sheet and Schedule A. However any Medicare Part B premiums that I paid out-of-pocket don't seem included in FORM SSA-1099.

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You have to enter medical expenses you paid with out of pocket funds in the Medical Expenses section of the program.

To enter your medical expenses -

• Click on Federal Taxes (Personal using Home and Business)
• Click on Deductions and Credits
• Click on I'll choose what I work on (if shown)
• Scroll down to Medical
• On Medical Expenses, click the start or update button

Or enter medical expenses, sch a in the Search box located in the upper right of the program screen. Click on Jump to medical expenses, sch a

[skunche]

Curious to know if IRS indeed waived, "the repayment of excess Premium Tax Credit for 2020"?

What is current status of "THE AMERICAN RESCUE PLAN ACT 2021" and as a result TurboTax updates, if any? 

[DoninGA]

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@skunche wrote:

Curious to know if IRS indeed waived, "the repayment of excess Premium Tax Credit for 2020"?

What is current status of "THE AMERICAN RESCUE PLAN ACT 2021" and as a result TurboTax updates, if any? 

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The IRS has not yet issued any guidance on how this is to be handled.

Go to this IRS website for their statement - https://www.irs.gov/affordable-care-act/individuals-and-families/the-premium-tax-credit-the-basics

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.

[Anonymous · Accepted solution]

Here is the current IRS guidance on the matter of the excess PTC payment being refunded to taxpayers. You do not need to file an amended return and the payment should come to you automatically, once IRS catches up with the backlogs:

https://www.irs.gov/newsroom/irs-suspends-requirement-to-repay-excess-advance-payments-of-the-2020-p...

[imadkazzaz]

Has this IRS guidance been implemented in Turbo Tax filing software application? thanks.

[Beloizeau]

Has this been resolved?  Will this be resolved prior to the May 17 filing deadline?  I went in online and this time, my return made it past the Federal review and through the State return, before that review resulted in the error message that Turbotax is working with the IRS on fixing the APTC issue and it should be done by "end of April." Has the overall issue been resolved (i.e., is this just somehow a glitch in my state return or the system), or are we still waiting for TT to act ?? Any ideas when this will be fixed??

[skunche]

I filed my taxes two weeks ago. Apparently, TurboTax has been updated already for "the repayment of excess Premium Tax Credit for 2020".

[dgreekva]

Desktop users are still hearing only Crickets from Intuit, and the US Government doesn't care if Intuit has coding challenges, they still want our taxes filed and paid or they will fine us.  Repayment from Intuit doesn't stop a data entry in our IRS file that 'we' were delinquent or filed erroneous tax returns, causing audits until we pass on. 

What is Intuit doing to get this done, accurately and TIMELY so we can all file proper returns?  Communications have already set the bar for the lowest Customer Satisfaction of any product I've ever owned and it gets worse each year.  Will this issue be yet another horrible example of poor communication and responses?  It certainly isn't Delighting me as a very long term customer.  Doesn't seem Intuit has a North Star to follow anymore...

[Anonymous]

For my specific case, the implementation appears to have been done by TurboTax. But it was a silent update, with no notification that anything "changed"... just the amount of my refund changed. The IRS tax guidance also indicates that I don't have to amend my return, and that an additional refund would be processed by IRS and issued to me.

[Anonymous]

I did not see the APTC message from TurboTax 2 weeks ago when I first posted my messages in this thread. I noticed that my refund had "grown" and that my Schedule 2 had been removed/changed due to the non-repayment of the advanced PTC. So, I don't know if Intuit was diddling with the software after that... and was presenting the "in progress" message along the way - I don't track this thing daily. I would personally wait until May 10 to file, if I had not already, just to make sure I have the most updated software running when I filed. I agree with others here that Intuit's communication on this matter has been very poor and left those of us affected in limbo and having to search the IRS website for guidance and "guess" on whether all changes have been fully implemented.

[Anonymous]

I would tend to agree, but there is no knowing whether they diddled with it after it first appeared to be implemented. That is the complaint of others here. I would just say to check back every week to see if your retrn values changed at all... which might indicate further changes being implemented.

[Anonymous]

I would agree with you. I've not found (and doubt it exists) a summary of software changes, by date, which download when you press that "download all updates now" button when you start TurboTax. It's grossly unfair, after you have filed your taxes, to download further "updates" from Intuit and not know, at  LEAST generally, what has been changed. In some cases it COULD necessitate amending your return - EVEN IF your refund amount does not change. Tax compliance is not based solely off the amount of taxes you have to pay. Intuit indeed does need better communication on tax changes released, especially after Jan 1 each year so folks can track those changes and the impact to their tax compliance.