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x-6148463593
New Member

TurboTax said we owed. ACA Premium Credits. IRS returned payment we sent, PLUS refund we would've received if premiums ignored. TurboTax charged for erroneous return?

ACA credits used Jan-Aug 2020. Sept-Dec was Medicare for affected spouse/taxpayer. We had to assemble a large tax payment to send to IRS, that hurt. 1st time we used TT because of Medicare beginning and an energy credit. Otherwise TT never calculated anything different than I did over the years. (compared my completed tax return to TT's the past few years.) Wanted to make certain return filed properly. What did I pay $110 for? Won't use TT again. Thanks.
3 Replies
xmasbaby0
Level 15

TurboTax said we owed. ACA Premium Credits. IRS returned payment we sent, PLUS refund we would've received if premiums ignored. TurboTax charged for erroneous return?

When did you file your tax return?   Was it BEFORE Congress changed the tax laws in the middle of the tax season?   Are you blaming the software for what Congress did that caused you to get an unexpected refund as a result of a tax law change?

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
rjs
Level 15
Level 15

TurboTax said we owed. ACA Premium Credits. IRS returned payment we sent, PLUS refund we would've received if premiums ignored. TurboTax charged for erroneous return?

The American Rescue Plan Act suspended repayment of excess Advance Premium Tax Credit retroactively. You, and millions of other people, had already filed tax returns before the law was changed. The IRS sent you a refund of the payment that you had already made before the law was changed.


Neither TurboTax nor any other tax software can take into account changes in the tax law that have not yet been made at the time that you file. You would have had the same problem no matter what software you used. Even if you prepared your tax return yourself, without any tax software, you would have had the same problem. The IRS did not issue instructions for filing without the repayment until April 9.

 

x-6148463593
New Member

TurboTax said we owed. ACA Premium Credits. IRS returned payment we sent, PLUS refund we would've received if premiums ignored. TurboTax charged for erroneous return?

Thanks Champ(s). My decision stands, there is no reason to use TT.

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