Yes, TurboTax will reflect the updated Advance Premium Tax Credit relief and you'll see it on your income tax return.
However, as for getting the credit, Per IRS: The IRS will provide more details soon.
- 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.
Per the American Rescue Plan:
- The Plan relieves eligible taxpayers of having to pay back any excess advance premium tax credit they took. If you used any credit to lower your monthly health insurance payment when you applied for coverage in the Health Insurance Marketplace®, you might not have to pay it back under the new law.
- When you enter your 1095-A in TurboTax, we’ll determine your eligibility whether or not you have to pay back any amount.
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The email I received from Maryland health connections says that any money owed back to the IRS for getting too much credit is to be forgiven BUT you still need to enter form 1095-A to reconcile. However, when I enter 1095-A it's still subtracting from my return... Is the software not updated with this new law? When can I expect it to be?
TurboTax is still waiting for final IRS guidance to update the software so the money owed for premium tax credit payback will be deducted from your return. We do not yet have the date when this will be implemented. Do not file your return until this has been changed in TurboTax.