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Yes, we have a blog. Please check out, American Rescue Plan. At this time, we are still waiting for guidance from the IRS.
Thank you for this information. However, it does not look like this blog has been updated since March 18th nor does it contain the latest updates like I was referring to. For instance, I read somewhere that the TT software has been updated for the first $10,200 of unemployment income change. However, there is no mention of this status on this blog. How will we know as consumers that each change we are waiting for is complete? Maybe release notes for each software update should be posted somewhere. Or, this blog be updated consistently to reflect the statuses.
The latest updates available in TurboTax can be found in the link below.
Please check it periodically as it is being updated depending upon further guidance issued by the taxing agencies.
Latest tax changes with third stimulus
Please can you advise how will we know that Turbotax is still waiting for the IRS, or if Turbotax has received the guidance from the IRS and is in process of updating the software?
@Don101 wrote:
Please can you advise how will we know that Turbotax is still waiting for the IRS, or if Turbotax has received the guidance from the IRS and is in process of updating the software?
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.
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.
TurboTax has Not yet updated the software for the Premium Tax Credit adjustment. They are still waiting on the IRS for guidance.
IRS statement - https://www.irs.gov/affordable-care-act/individuals-and-families/the-premium-tax-credit-the-basics
We’re reviewing the tax provisions of the American Rescue Plan Act of 2021, signed into law on March 11, 2021. Taxpayers who filed a 2020 tax return and reported an excess advance premium tax credit repayment on Line 29 of Form 8962, Premium Tax Credit, should not file an amended tax return only to get a refund of this amount. The IRS will provide more details soon.
Here is the announcement from the IRS dated April 9:
"The Internal Revenue Service announced today that taxpayers with excess APTC for 2020 are not required to file Form 8962, Premium Tax Credit, or report an excess advance Premium Tax Credit repayment on their 2020 Form 1040 or Form 1040-SR, Schedule 2, Line 2, when they file."
Does this mean that I simply can remove my reporting of Form 1095-A ?
No, you still need to enter the Form 1095-A. TurboTax has been updated to account for the changes with the excess advance premium tax credit repayment. You still need to enter Form 1095-A.
Hi @PattiF, thank you for posting that the software was updated for the premium tax credit. I do see that the federal software was updated -- but not for the state yet. Do you know if the advance premium tax credit affects California state taxes as well? And if so, when the software will be updated? Thank you!
There doesn't seem to be any changes to the advance premium tax credit for California. Legislation for 2020, 2021 and 2022 has extended the premium subsidy from 400% of the Federal Poverty level to 600% of the poverty level. Subsidies are now available to higher earned individuals and families in California.
There won't be any changes to the advance premium tax credit for California. Legislation for 2020, 2021 and 2022 has extended the premium subsidy from 400% of the Federal Poverty level to 600% of the poverty level. Subsidies are now available to higher earned individuals and families in California with this change in the legislation.
Thank you!
Hi @PattiF,
Has the TurboTax Desktop software been updated as well to account for these changes?
Now mid januari 2023 - again same issue for tax year 2022
TT doesn't take into account the American Rescue Plan act section 9661.
This act states that the max health care cost can be only a certain percentage of AGI. Par example 8.5% if over 400% of FPL. TT takes all the APTC back if received too much; and doesn't take section 9661 into account.
When can we expect an update
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