When will TT adjust programming for "waiver of repayment of Advanced Premium Tax Credit" for 2020 returns?

[usbbd50]

Thanks Dawn

[bomo817]

Just went back in to complete my Federal return and the repayment of the APTC has been removed from the calculation.  I use the online version and would imagine TT will be sending out an email announcement to all users that were "on hold" for completing their returns.  Thank you TT for getting your act together, albeit weeks after the ARP was enacted!

[DoninGA]

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@bomo817 wrote:

Just went back in to complete my Federal return and the repayment of the APTC has been removed from the calculation.  I use the online version and would imagine TT will be sending out an email announcement to all users that were "on hold" for completing their returns.  Thank you TT for getting your act together, albeit weeks after the ARP was enacted!

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TurboTax has to wait for guidance from the IRS before any changes can be made in the software for the PTC adjustment.

The IRS just released the information on the PTC adjustment on 04/09/2021 - https://www.irs.gov/newsroom/irs-suspends-requirement-to-repay-excess-advance-payments-of-the-2020-p...

[bnse]

Is anyone else STILL having issues with SEHI and excess advance PTC?  I use the desktop version, and it is still entering the $2700 advance repayment and applying that amount to my self employment health insurance premiums paid.  Any advice or insight would be greatly appreciated!

[bassmaster]

Yes, I don't think you're alone.  I'm also on the Windows desktop (ver 1727) and have the same apparent problem.  Although several other PTC issues appear to have been fixed, the amount of PTC that I should have paid to the IRS, but has since been forgiven, appears in Schedule 1 Part 2 Line 16 as a self-employed health insurance deduction.  This flows to 1040 line 10a and is subtracted from total income.  As others have said, we probably shouldn't receive a health insurance expense deduction for insurance expenses that we did not pay.

My guess is that the TTax program isn't completely updated as I receive a notice at the Final Review saying "We recommend that you wait to file while we work on these changes".  Supposedly this will happen "by the end of April at the latest".  Fingers crossed!

If, on the other hand, the TTax program is correct and the IRS is OK with the forgiven PTC being used as a self-employed health insurance deduction, please let us know!

[bassmaster]

There was an update this morning (Home & Business desktop ver 1728) but it did not remove the forgiven excess APTC from the self-employment health insurance deduction.

Unfortunately, none of the cells where this excess appears can be overridden (1040 WKS II 16, Sched 1 II 16, 1040 10a).

I spoke with a TurboTax CPA on the phone for quite some time on 4/23 and after my situation was discussed among their experts, on 4/26 they suggested deleting Form 1095-A (Health Insurance Marketplace Statement).  Alternatively, if columns A and C are deleted in my case where I did not pay anything for health insurance, the result looks correct.  If you did pay something toward your health insurance, maybe A and C could be adjusted differently. *This is not tax advice!  I'm speculating!*

If the issue doesn't get corrected "by the end of April" as promised, I'm going to try one of these 1095-A options.

[bnse]

Yes, I too was hopeful about the update this morning, but to my dismay, it did not resolve the SEHI/APTC issue.  I read in another post that you could "unlink" the 1095-A to your business activity (i.e. in the ACA section, do NOT mark the box indicating you are self-employed and bought insurance through the marketplace) , and then enter your actual premiums paid into the SEHI question under your business expenses.  At first glance, this does appear to resolve the issue.  However, I am hesitant to manipulate the system in any way for fear of making a mistake.  I certainly am not a tax expert and can't confirm that this is indeed an accurate/effective work around. 

I would much prefer to have a fully functioning version of TT.  I do understand the difficulties involved, due to the timing of some pretty significant changes.  I am just frustrated as I have additional financial paperwork due to my lenders tomorrow, and I still can't complete my tax return with confidence.  I am also frustrated with the lack of information coming directly from TT.  I appreciate your input and keeping us updated on any information you have obtained.  Best of  luck, and I will post any new developments that I learn of!

[Cynthiad66]

We have offered several work arounds for various issues this year.  There are still several issues that are still outstanding.  To use a work around is perfectly okay with the IRS as long as the tax return reflects the correct numbers and deductions.  Does not really matter how you got there.  So I recommend using the work around if it gets the desired results.

[maxhan22]

When I review my return it states that turbotax is making a change by 4/30/2012 at the latest to resolve this matter and to wait to file until it is fixed to file . It is now past that time and no change. When is this going to be fixed? IRS deadline is not too far off plus it is delaying refunds. There should be immediate communications as to when this is to be fixed since turbotax has missed it's own deadline for this update. Is there a number to call so that we can resolve this problem. Thanks.

[maxhan22]

Date should be 04/30/2021. Sorry.

[ColeenD3]

Please see this answer from ToddL99 from a week ago.

You do not need to amend your tax return claim forgiveness for an excess premium tax credit - the IRS will make the adjustment automatically. If payment has already been made (or scheduled), you will get reimbursed.

See IRS suspends requirement to repay excess advance payments of the 2020 Premium Tax Credit

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. 

Again, IRS is taking steps to reimburse people who filed Form 8962, reported, and paid an excess advance Premium Tax Credit repayment amount with their 2020 tax return before the recent legislative changes were made. Taxpayers in this situation should not file an amended return solely to get a refund of this amount. The IRS will provide more details on IRS.gov. There is no need to file an amended tax return or contact the IRS. 

[RANCHBOSS]

My California state return is now giving me a huge credit because it loos like the federal overpayment is not being included in the calculation. 

Can somebody verify?. What should I do?.