PTC (Premium Tax Credit) forgiveness for 2020 (via COVID Relief Bill) and TurboTax ineptitude

[okaneplease]

Intuit keeps claiming its update for COVID Relief Bill changes are completed, but I don't see it. Yes to the unemployment tax forgiveness, but no forgiveness on repayment of Premium Tax Credits for 2020.

The very limited support through Twitter messages (that's "support"?) has been useless. I sent screenshots of my Form 8962, which shows money owed on both Lines 27 and 29. Unless I can force a "zero" on Line 28, I have to report Line 29 on Schedule 2 and therefore on my 1040.

Any advice?

(This user of TurboTax for over 25 years will likely turn elsewhere next year. I understand bumps in the road when it comes to software updates. The lack of communication and miscommunication, though, are unforgivable. Poor customer "service.")

[JeffreyR77]

Your tax return may not be complete. We are waiting for the IRS to give us an update on the Advance Premium Tax Credit relief provided for in 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.

Under the ACA, people with incomes between 100 percent and 400 percent of the federal poverty level (from $12,760 to $51,040 for one person or $26,200 to $104,800 for a family of four) were eligible for premium tax credits to reduce their premiums for marketplace coverage.

But under the changes passed in the new law, how much people owe is reduced at every income level and capped at 8.5 percent overall.

[okaneplease]

@JeffreyR77, your reply exemplifies the poor communication/service I'm receiving from Intuit. I know the rules. In fact, I think I've got it clearer than the way you've explained it. You wrote "might not have to pay it back," but it's not "might." There's NO clawback for 2020. And the 8.5% you mention in the last sentence is for 2021-22, so it's irrelevant to my initial question.

Furthermore, TurboTax Support on Twitter (@TeamTurboTax) insists that the software updates regarding the COVID Relief Plan are completed.

Inconsistency and ineptitude continue...

[Armbre]

okanplease,

While this doesn't specifically address your concern, it sounds like the IRS is still working on how to incorporate.  Without specific IRS guidance, it's hard to see how Turbotax is going to do anything (I am in same situation).  From IRS page today:

Check Back for Updates to this Page

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. For the latest updates, check IRS.gov/coronavirus.

[nearlyanonymous]

I agree. This policy so many companies have now of pretending to provide customer service via open forums, Twitter, etc is too often inadequate, if not pathetic. They're too greedy to hire, train, and fairly compensate competent customer service staff. 

This is not meant to say there are no good staff. It's just not enough.

[NCperson]

@nearlyanonymous @okaneplease 

here is the official IRS stance on the premium tax credit.  You guys are barking up the wrong tree.  Frankly, the

IRS has not told ANYONE what they are going to do , what the rules are etc. 

https://www.irs.gov/affordable-care-act/individuals-and-families/the-premium-tax-credit-the-basics

Check Back for Updates to this Page

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. For the latest updates, check IRS.gov/coronavirus.

if you can find another statement from the IRS on how or when they are going to deal with the premium tax credit, please post it.  But as of this date, a dollar says you won't find anything else.  

[Dom-Virginia]

I understand the IRS has provided guidance, when do you anticipate TurboTax will update its program to remove the repayment???

[NCperson]

@Dom-Virginia - can you post the documentation of that guidance? I can't find it on the IRS website 

here is the only thing I could find: 

https://www.irs.gov/affordable-care-act/individuals-and-families/the-premium-tax-credit-the-basics

Check Back for Updates to this Page

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. For the latest updates, check IRS.gov/coronavirus.

[Dom-Virginia]

I heard on the news guidance has been given and I checked the same site you've shown which in effect says "Standby". Here is another site I found that explains fully what will happen which may be of help to you.

https://www.healthinsurance.org/blog/how-the-american-rescue-plan-act-w[product key removed]tplace-p...

[NCperson]

my only point is if it was reporting one way in the news and another way on the IRS website, the IRS website wins. 

I wouldn't trust the news unless the IRS website is saying the same thing, 

[okaneplease]

I'm told that H&R Block has updated its software to eliminate repayment of the Advance Premium Tax Credits for ALL, including people over the 400% FPL cliff. If Intuit/TT don't have plans to update soon, I guess I'll switch software companies.

[NCperson]

@okaneplease - I would be surprised if that was true.... it is my understanding that the IRS reviews and signs off on all software changes from these vendors (turbo tax, HR Block, Taxslayer, etc.) How could the IRS approve it if they haven't even provided the industry any guidance on what to do? 

[katerday]

Someone did post their update from H&R Block, it did indeed read that they had corrected their software; however not sure where H&R got that guidance as the IRS websites are not reflecting it.  I'm holding out a few days as something doesn't seem right, like maybe H&R Block was a little too eager to resolve the issue.  I'd rather it be right than deal with if they were wrong.

[8855]

H & R BLOCK HAS UPDETED THERE SOFTWARE AND THE IRS IS ACCEPTING THE RETURNS.

[Dom-Virginia]

My Software updated this AM and is now correct!