The intent of the last minute unemployment waiver provision was to benefit the unemployed worker during this crisis. It was not intended to be punitive, which to a very small group of taxpayers it is. I.e., those who paid full health premiums each month, took the year end PTC, AND whose income dropped below the PTC range as a result of the retroactive provision. As such, I do not believe that there explicitly states in the provision that taxpayers are required to take the exemption and complete the Unemployment Exclusion Worksheet if the result is not beneficial.
At question is also the legality of the retroactive nature of the provision. For example, if retroactive tax changes happen each year, it becomes impossible to project AGI with respect to PTC subsidies as any retroactive changes to what is and is not considered taxable income would move individuals in and out of the PTC range with no ability to plan during the year. In my case, I take a IRA withdrawal each December or make a contribution if needed to get into the PTC range.
Additionally, IRS has just provided guidance with respect to the PTC and stated that if your income dropped beliw the PTC range in 2020 (due to the unemployment waiver or any other reason), the taxpayer would not have to repay any excess Premium Tax Credit,, however, they did not address the taxpayer that pays the full monthly premium and takes the year end credit (small group of people, but a population nonetheless).
There are a few other issues and unintended consequences as a result of the last minute unemployment exclusion provision that I will not bore the community with, but I am currently working with the Sytemic Tax Avocacy group of the IRS to address these issues and am hopeful additional guidance will be forthcoming.
