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

I have a situation where I received the an advanced payment of the premium tax credit for 6 months as I went on Medicare.  Because I went over the 400% of the poverty line, I expected to pay this money back.  California, however picks up the difference.  BUT, now I have a big problem.  The relief bill passed in March, doesn't require repayment and California wants to pay me for that money that I would normally have to repay.  According to the California forms, I don't fill out an advanced payment (since California didn't pay anything), but obviously, if the Feds don't want the money, I shouldn't be getting a refund from California.  How do I solve this dilemma?  If I fill in the appropriate boxes on California's step by step as if I received money from California, then they ask me to pay something towards my health insurance, which doesn't seem right either.  ARRRGH.

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

I submitted my Federal forms and they were rejected saying "updates to the Self Employment Health and Long term care insurance deduction worksheet are estimated to be completed by 4/30/2021. What does this mean? Is turbo tax waiting to hear from IRS before anyone can submit their tax return????

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

You ignore a major point the OP makes, which is clearly expressed--the failure of TurboTax/Intuit to provide good customer service:

 

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.

 

First rule of good customer service; don't lie, i.e. don't say something is updated when it's not.

 

Another rule for good customer service; don't make your customers keep "checking back" to find out if something out. Have a system to contact and inform them. Hmmm, if only there were some way a company could contact customers through some sort of electronic mail. (Funny, they seem to find one when they want to sell you something else.) Or, god forbid, they let you call and talk to an actual expert.

 

Not to mention, it's crap srvice leaving the answers to important questions up to a discussion board where the customer may or may not receive answers from someone who knows, and most likely will receive poor, and often conflicting answers from so-called "experts,"  along with the same from other confused customers.

 

Oh, and I expect this comment will be deleted by the team, as was my last post making this same point about the lousy customer service provided by the company. If ya can't please 'em, delete 'em!

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

The forgiveness of the PTC for 2020 was just announced on Friday, April 9, 2021. IRS and TurboTax updates will surely follow on. Ref: https://www.irs.gov/newsroom/irs-suspends-requirement-to-repay-excess-advance-payments-of-the-2020-p...

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

Something was wrong with your link. I tried it and found that somehow, the URL is altered when the link is clicked. Very strange.

 

https://www.irs.gov + /newsroom/irs-suspends-requirement-to-repay-excess-advance-payments-of-the-2020-premium-tax-claiming-net-premium-tax-credit-must-file-form-8962

 

Remove the " + " and paste this into your favorite browser to get there.

 

This was posted by the IRS on 4/9. No change in TT yet.

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

Latest from IRS website say if you would OWE PTC  it is waived AND you do not file anything. here's the language. However, I just tried to complete my filing on Turbo and it still is looking for 1095 reconciliation info, ie, asking if you have a 1095-A. you do need the reconciliation info if you overpaid. 

Who should file Form 8962 with their 2020 tax return?

If taxpayers have excess APTC for 2020: They should not file Form 8962 when they file their 2020 tax return and they should not include an amount on Form 1040 or Form 1040-SR. Schedule 2, Line 2. The IRS will process that tax return without Form 8962 and will not add any excess advance Premium Tax Credit repayment amount to the 2020 tax liability. The taxpayer should disregard notices from the IRS asking for a missing Form 8962 if they have excess APTC for tax year 2020.

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

@amarcantesq2 I haven't tried filing yet. Still waiting for any more TT updates.

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

I just went back in and went to the 1095-A section. Its a pain but you have to fill the whole form out, but it was the only way i could get to the next page. And VOILA,  It said NO TAX owed and I would have owed up to the limitation amount. So you should be good to go.

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

@amarcantesq2 I see what you're saying. I guess that about as good as we're going to get (I was expecting some sort of note affirmatively acknowledging this as a 2020-only waiver). Thanks!

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

It actually says that. “ GOOD NEWS, There is no requirement for insurance repayment in 2020”. That’s exactly the message that comes up after you input your 1095A and if in fact you under paid your premium tax credit. My on the payment was over 3000. That would have required me to pay based upon my income approximately 900 because there’s a limitation calculation. But it says I pay zero due to the one time only 2020 Waiver of the clawback. Good luck but it was good to see that they have updated the software.

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

I did the taxes today and if you go to the section regarding 1095A in the software you will see after you fill in the figures and click continue you will receive a message saying that you owe nothing for 2020 if in fact you under paid the advance premium tax credit.. You have to actually fill it out and get to the next page before you see it though

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

amarcantesq2 I'm running the Mac version and I only have one page on the 1095A, even after the latest update. With that said, and with the 1095A completely filled out, the excess PTC amount did not carry over to the 1040 Schedule 2 via the 8962. I still can only assume it's because that amount was waived. 

 

I think I'm good to go, though.

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

Sounds right.  The IRS website states that if you were doing paper forms you would not do  Any reconciliation at all and you would put nothing on the 1040. Bottom line is there’s no clawback so that’s the good part!

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

Bummer...Tax Planning was not very effective for Americans in TY2020.  The IRS/Congress pass laws late in a year, then tax preparation firms have to adapt, then we adapt...Plan your work and work your plan...NOT for 2020!

 

My latest update from TTX: Check back by 30 April 2020 for final changes then Pay any taxes owed by 17 May 2020.  

 

Even Tax experts have challenge interpreting what IRS interprets from Congressional laws...We need to fix/update our congress people who have no concept of Planning; they only appear to know how to tax???

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

Oversimplification of a complex subject.

 

 

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