TurboTax update to 2021 American Rescue Plan

[craveking]

So, we get two updates. One for the UI income exclusion and one for the APTC adjustment. We discover these updates through forums or accidentally by updating our software, not from Intuit.

The APTC credit which has been "forgiven", isn't subtracted from medical expenses, so the medical expenses will lower the AGI as well as the resulting tax. No word on whether this is "by design" or is going to be addressed in a subsequent update.

[micheleaey]

As far as I can see on my home in business desktop version I've been updated. Unemployment is going to go towards your AGI. Any amount above and beyond $10,200 will go towards your AGI so it depends on how much unemployment you made for the year subtract the 10,200 and that's the amount that will be added to your AGI on your 1040

[mandrak007]

I filed my taxes, also received unemployment, but forgot to add 1 W2. Should I amend after IRS refunds me the Unemployment difference first, and then amend with the new W2? Any suggestions? Thanks

[Dee4817]

@LinaJ2020  I already efiled my return.  I understand the IRS will automatically recalculate our Unemployment income credit, but what about the Advance Premium Tax Credit?  Will they automatically recalculate that as well?  Or do we need to file an amended return for that credit?  I can't find this answer anywhere!

[macuser_22]

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@Dee4817 wrote:

@LinaJ2020  I already efiled my return.  I understand the IRS will automatically recalculate our Unemployment income credit, but what about the Advance Premium Tax Credit?  Will they automatically recalculate that as well?  Or do we need to file an amended return for that credit?  I can't find this answer anywhere!

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

Taxpayers who have already filed their 2020 tax return and who have excess APTC for 2020 do not need to file an amended tax return or contact the IRS. The IRS will reduce the excess APTC repayment amount to zero with no further action needed by the taxpayer. The IRS will reimburse people who have already repaid any excess advance Premium Tax Credit on their 2020 tax return. Taxpayers who received a letter about a missing Form 8962 should disregard the letter if they have excess APTC for 2020. The IRS will process tax returns without Form 8962 for tax year 2020 by reducing the excess advance premium tax credit repayment amount to zero.

[Dee4817]

@macuser_22   Finally!  Thanks so much for taking the time to reply!

[craveking]

The excess APTC was eliminated but it still shows up in medical expenses as being paid. Is this by design or something that remains to be addressed since it obviously impacts AGI and taxes owed?

[JotikaT2]

To fully address this issue, it would be helpful to have a TurboTax ".tax2020" file that is experiencing this issue.

You can send us a “diagnostic” file that has your “numbers” but not your personal information.  If you would like to do this, here are the instructions: 

Go to the black panel on the left side of your program and select Tax Tools. 

1. Then select Tools below Tax Tools. 
2. A window will pop up which says Tools Center.  
3. On this screen, select Share my file with Agent. 
4. You will see a message explaining what the diagnostic copy is.  Click okay through this screen and then you will get a Token number. 
5. Reply to this thread with your Token number. This will allow us to open a copy of your return without seeing any personal information.  

We will then be able to see exactly what you are seeing and we can determine what exactly is going on in your return and provide you with a resolution. 

@craveking

[craveking]

I'm sure it's not isolated to my situation only. Here's the deal....if you have to pay back advance tax credits, whatever the amount is you have to pay back is added to your total medical expenses. This is not new. However, since sch 2 eliminates the payback, the payback still shows up as a medical expense. Trust me, this is happening for everyone. Now it may be the IRS just decided to eat the lost tax revenue which is the result of keeping the ATC in the medical expenses since it reduces AGI and therefore, taxes.

[denmal]

Well, they are NOT going to accept it , both my FED and State just got rejected.  and per TT it will not get updated until 4/30.  SO NOW , I am going to own my state INTEREST because even though they moved the filing deadline a NC law is on the books that they have to collect interest if your payment is not received by April 15th.  PLEASE TT need to get this updated or I will owe MORE money.

[DoninGA]

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@denmal wrote:

Well, they are NOT going to accept it , both my FED and State just got rejected.  and per TT it will not get updated until 4/30.  SO NOW , I am going to own my state INTEREST because even though they moved the filing deadline a NC law is on the books that they have to collect interest if your payment is not received by April 15th.  PLEASE TT need to get this updated or I will owe MORE money.

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There are 16 pages on this thread so you need to identify exactly what you mean "per TT it will not get updated until 4/30".

Get what updated?

[cebner]

This was passed a month ago and instructions are available per the IRS.

When will Turbo Tax be updated.  We'd like to get our taxes filed!

[macuser_22]

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@cebner wrote:

This was passed a month ago and instructions are available per the IRS.

When will Turbo Tax be updated.  We'd like to get our taxes filed!

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It was updated weeks ago.

[craveking]

No, it wasn't updated weeks ago. The unemployment income issue was updated a couple of weeks ago. I guess that qualifies as "weeks". The APTC was updated last week but I am far from convinced it is final based on the medical expense issue I continue to point out with no response. But, the worst part of this is the fact that even though I signed up for TT updates related to these issues, none have come. The only way I found out was updating the software after hearing on forums like this, that the issue has been addressed. That's not right. How difficult would it be for TT to put an update page on their homepage with up to the minute information about what's been implemented, what versions and what steps remain? Am I missing this somewhere? If so, profusely apologize.

[thay]

@craveking 

Continuing from this user's post, getting confirmation on this post would be helpful.  Even though my premium tax credit repayment got wiped out on my Schedule 2, it still exists on Medical Expenses Worksheet line 2b, and thus my schedule A line 1.   Therefore, it is being included in expenses, even after it has been fully credited.  As the original post requests, is this intended behavior?   Thanks.