The American Rescue Plan Act waives any ACA premium credits owed in 2020 but TT desktop still shows I owe $300. When will this be updated?

[musicmafia]

Under normal circumstances, I would owe the money, but The American Rescue Plan Act forgives any amount due on 2020 tax returns. The bill was signed into law March 11 but my desktop Premier version is still saying I owe the money. April 15 is coming fast. Will the changes be updated prior to deadline?

[AnnetteB6]

The changes for the ACA premium credits due to the American Rescue Plan have been implemented.  You may need to update your desktop version of TurboTax for the changes to take effect.  

Additionally, if you were not aware, the filing deadline has also been extended.  Instead of April 15, you now have until May 17, 2021 to file your return and pay any balance due that is owed.

Take a look at the following TurboTax article for some instructions to update your TurboTax program:

How do I update my TurboTax CD/Download software program?

[MGarry415]

Hello Anette - has it also been updated on TURBOTAX  online? My Advanced Premium tax credits owed is still being taken out of my refund, i don't see a change.

[MichelleLO]

For assistance with QuickBooks, you will need to contact their Customer Support. 

@MGarry415

[MGarry415]

I'm sorry, that was supposed to say "Turbo TAx online" hasnt updated my APTC - not quickbooks.

[JeffreyR77]

We are waiting for the IRS to give us an update on the Advance Premium Tax Credit relief provided for in the American Rescue Plan.  The tax filing deadline is now May 17th.

The Plan relieves eligible taxpayers of having to pay back any excess advance premium tax credit they took. If you used any credit to lower your monthly health insurance payment when you applied for coverage in the Health Insurance Marketplace®, you might not have to pay it back under the new law.

Under the ACA, people with incomes between 100 percent and 400 percent of the federal poverty level (from $12,760 to $51,040 for one person or $26,200 to $104,800 for a family of four) were eligible for premium tax credits to reduce their premiums for marketplace coverage.

But under the changes passed in the new law, how much people owe is reduced at every income level and capped at 8.5 percent overall.

We will provide more information as it is made available.

[musicmafia]

Hi @AnnetteB6  I ran the update, closed the program and rebooted and it is STILL showing that I owe the difference, which is @ $300. The desktop version of Premier does NOT seem to be updated to reflect the waiving of these fees via the The American Rescue Plan Act. Thanks, MM

[NashayLO]

Please contact us by phone for further assistance, Customer support phone number - TurboTax

[musicmafia]

Thanks @NashayLO , Yes, I called a CSR but they said they did not have any info or details on when Turbo tax would be updated to reflect the waiving of the payments under the new American Rescue Plan. 

Per the replies above, some tax experts are saying the updates have been made and others are saying the updates have not yet implemented in the software.  

Hopefully Turbo Tax will have some updates about this issue soon, as I know I am not the only one having this issue.

[selfemployedboss]

Has this feature been updated online?? My TuboTax Online is still showing I owe for healthcare premiums under the ACA. 

[DoninGA]

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@selfemployedboss wrote:

Has this feature been updated online?? My TuboTax Online is still showing I owe for healthcare premiums under the ACA. 

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No, the TurboTax program has not been updated for the Premium Tax Credit adjustment.  The IRS has not issued any guidance on this issue yet.

See this 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.

[lou_renshaw]

I am having the same problem with my desktop download of Turbotax Premier.  It updates every time I open it, but has yet to change that I owe the money back.  The new law for 2020 says that nobody has to pay back the subsidy.  So that needs to be reflected in the programs.  I have reached out to Turbotax over facebook messenger, and they also say it's been updated and sent me to a link that didn't help.  It has not updated, whether Turbotax wants to insist it has or not.   Instead of placating and ignoring the problem, perhaps Turbotax employees that answered this question should reach out to their tech support and let them know it's not updating for the downloads.  I can't finish other tax returns I am doing (which are still due April 15) until Turbotax updates this or I download all the forms and do it myself.  Turbotax is being told by customers that it is not updating, and yet we are just being ignored.  Please reach out to the appropriate people on our behalf.  This is beyond frustrating that we can't get either a straight answer or help

[lou_renshaw]

https://www.healthinsurance.org/blog/how-the-covid-relief-law-will-rescue-marketplace-plan-buyers/

..."You’re in luck: Under the American Rescue Plan Act (H.R. 1319) – passed by Congress on March 10 and expected to be signed into law by President Biden on March 12 – excess premium subsidies for 2020 do not have to be repaid to the Internal Revenue Service.

This is a one-time provision that’s being granted as part of the federal government’s massive COVID relief measure"...

[DoninGA]

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@lou_renshaw wrote:

I am having the same problem with my desktop download of Turbotax Premier.  It updates every time I open it, but has yet to change that I owe the money back.  The new law for 2020 says that nobody has to pay back the subsidy.  So that needs to be reflected in the programs.  I have reached out to Turbotax over facebook messenger, and they also say it's been updated and sent me to a link that didn't help.  It has not updated, whether Turbotax wants to insist it has or not.   Instead of placating and ignoring the problem, perhaps Turbotax employees that answered this question should reach out to their tech support and let them know it's not updating for the downloads.  I can't finish other tax returns I am doing (which are still due April 15) until Turbotax updates this or I download all the forms and do it myself.  Turbotax is being told by customers that it is not updating, and yet we are just being ignored.  Please reach out to the appropriate people on our behalf.  This is beyond frustrating that we can't get either a straight answer or help

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TurboTax cannot adjust the Premium Tax Credit until they receive guidance from the IRS.  As of this date the IRS has not provided any guidance.

IRS website for a 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.

[musicmafia]

I just wanted to confirm that Turbo Tax Premier Desktop has been updated and no longer shows any payments due for the premium tax credits. Hopefully this is now working in all versions. Thanks.