When will Turbo Tax support the The American Rescue Plan Act waving of owed ACA tax credits for 2020?

[DoninGA]

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@mark8 wrote:

Looks like Turbo tax software is showing that changes on waiving the owed ACA tax credits.  If we have already filed do we amend our return or just wait for further instruction still.

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For the PTC adjustment the IRS advises not to file an amended tax return.

Go to this IRS website for information - 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.

[himar07]

I have filed my federal taxes, but have not paid yet.  The reason I owed is because of the advance premium tax credit.   So when I finished my taxes in March, TT said I could file and see what IRS does or wait.   So I waited, then turbo tax did an update and that message went away, said I was good to file, this was at end of March, so I did file.    Then just recently when into Turbo Tax it updated again, and now I am receiving a refund, due to them waving owed aca.   It seems silly to pay in May, if they are going to turn around a give it back to me?  Should I pay since I filed that I owed?  Obviously if I receive something before May 17 then we are good.  Suggestions?

[AmyC]

The IRS is cross checking stimulus payments, unemployment, and now the PTC along with EIC, CTC, dependents, etc. It is a long slow process. The IRS should catch it and correct the issue. Because your final, correct bill is a refund, you do not have to make a payment. 

@himar07

[Hyperbeast02]

The system still hasn’t been updated!! When will it be?? You said it would be done by the end of March and it’s now April!!

[DoninGA]

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@Hyperbeast02 wrote:

The system still hasn’t been updated!! When will it be?? You said it would be done by the end of March and it’s now April!!

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The unemployment compensation exclusion was updated across all TurboTax platforms, online and desktop, on 03/26/2021.

The exclusion is reported on Schedule 1 Line 8 as a negative number.  The unemployment compensation received is on Line 7 of Schedule 1.  The result flows to Form 1040 Line 8.

Using the online editions - Click on Tax Tools on the left side of the screen. Click on Tools. Click on View Tax Summary. Click on Preview my 1040 on the left side of the screen.

The Premium Tax Credit adjustment was updated across all TurboTax programs, online and desktop, on 04/08/2021

Go to this IRS website for information on the PTC adjustment - https://www.irs.gov/newsroom/irs-suspends-requirement-to-repay-excess-advance-payments-of-the-2020-p...

If using the TurboTax desktop editions -

Update your software.  For a Windows based PC, click on Online and Check for Updates.

The current version is 020.000.1694.  Click on Help>About TurboTax>Version

[himar07]

Thanks Amy, 

I have a new problem, hopefully you can help me.  So I just went into Turbo tax today to look at a figure on my tax return.  It wanted to update again, and now my refund amount on federal went down and the money I owe state increased!  I did not do any changes, all I did was open it up.   I compared both returns, and what I think happened is that this most recent update changed the amount of self employed health insurance deduction.   I think this gets figured after you put in your marketplace 1095-A info, because I did even put this number in.  So my guess is the first update fixed the Advance PTC, but did not adjust the self employed health insurance deduction part.  This most recent update did fix it.  What a mess!  So now my income is higher.  So I owe that state more money, and federal thankfully I still don't owe.  I have not received a refund on my federal at this point.  Do I file amendments on both, since the deduction calculation was incorrect on both returns?  I need to send the state more money now as well,   PLEASE help!

[AmyC]

What a year and so many tax changes.  The IRS will adjust your return so no worry there.

As for the state, you will want to send them the extra money before the deadline so there is no penalty. As far as actually creating and sending the amended form, it may not be necessary. The state may also figure it out and make the adjustments. You can send the form if it makes you feel better but amended forms should not be filed until the original form is settled. So, waiting and patience. The federal feeds information to the states.

@himar07

[pat_glover]

Just read thru the previous blog RE: ACA tax credits ... well it's Tax Day  - May 15, 2021.  I too was affected by IRS Act.  I filed my 2020 tax return on April 6 totally unaware of the Tax Act and its impact on my taxes. SHAME ON Turbo Tax for not notifying us self-tax preparers that there might be a snafu.  If software needed to be updated, they could have notified us to delay tax filing since we had till today to file.

So although my online return shows a REFUND, my filed return showed a TAX DUE.  Sure enough, the IRS deducted the tax due making my checking account overdrawn.  I read the IRS press release which clearly said to NOT file an amended return NOR notify the IRS as they will correct the issue.  So I FOLLOWED the guidelines !!  

Turbo Tax YOU FAILED ...  to communicate and correct the filing before it wreaked havoc on my checking account  !!  I am SO DISAPPOINTED...  Will the IRS correct the issue?  WHAT ARE MY NEXT STEPS ???

[DanielV01]

The IRS pulling your "payment due" (when it wasn't), not TurboTax.  There were a lot of law and program changes during that time frame, and TurboTax followed guidance provided by the IRS.  So you would need to take this issue to the IRS, because TurboTax does not process tax payments or refunds.

[pat_glover]

Daniel - that answer just sounds like Turbo Tax is just passing the buck (no pun intended) and blame.  Clearly when I pay to use Turbo Tax and they quote 100% guarantee of accuracy, I expect them to act on my behalf to get my return filed correctly AND/OR prevent a transmission of an inaccurate tax return.  

NO communication from Turbo Tax, Daniel .... is unacceptable !!!  Bet you wouldn't be too happy to get >$5000 taken out of your checking account when you expected a refund.  Not asking for Turbo Tax to process a payment or refund just asking for them to be accurate when they process a tax return.  Yes, dealing with the IRS is next.

[Anonymous]

@pat_glover  this really isn't on TurboTax.  They did file an accurate return when you filed.  THEN the law changed.  The IRS guidance out there clearly states to not amend.  This is what they IRS has told everyone - including TurboTax.  They don't have any special information that would tell them anything other than what the IRS has told ANYONE.  They don't have a crystal ball that tells them that the IRS payment system was going to draft your checking account - that is an IRS system alone that does that.  A system TurboTax is NOT privy to. 

Knowing that you agreed to a draft and not having the funds available just in case, I am afraid, is all on you.  No one ever said the funds wouldn't be drafted. Even an amendment wouldn't have stopped that from happening.

TIt's an unfortunate situation that you're in, but the blame doesn't belong to TurboTax.  It may not even really belong to the IRS.  Try Congress!