TurboTax update increased Federal Refund after I filed due to 1095-A and Form 8962

[ewiener1027]

I e-filed my 2020 return on 3/30/2021 and a TurboTax update has now increased my Federal Refund amount by $835, which is the amount originally reported on 1040 line 17.  The update leaves that line blank now. 

This amount comes from Part 1 of Schedule 2, which is Additional Taxes. Originally, my eFile had $835 on Line 2 and 3 of Schedule 2, which is "Excess advance premium tax credit repayment. Attach Form 8962." 

The update makes Part 1 blank entirely.

Form 8962 shows the $835 as an amount reported in 1095-A for Health Insurance Marketplace Statement.

This change in tax policy changes my tax return from $2,766, which I received 4/7/21 to $3,601.
It's now mid-September and was told I should expect to see the additional $835.00 during the summer.  

Are there additional steps I can take to learn the status of my adjustment? 

[ewiener1027]

This amount comes from Part 1 of Schedule 2, which is Additional Taxes. Originally, my eFile had $835 on Line 2 and 3 of Schedule 2, which is "Excess advance premium tax credit repayment. Attach Form 8962." 

The update makes Part 1 blank entirely.

Form 8962 shows the $835 as an amount reported in 1095-A for Health Insurance Marketplace Statement.

This change in tax policy changes my tax return from $2,766, which I received 4/7/21 to $3,601.
It's now mid-September and was told I should expect to see the additional $835.00 during the summer.  

Are there additional steps I can take to learn the status of my adjustment? 

[GeorgeDenseff]

The IRS stated by the end of summer which would be September 22.  They may not make that deadline.  There is nothing that you need to do.  They have not provided any way to check the progress of the refund.  At least you will get interest on the money until they finally get it paid.

[ewiener1027]

How will I get interest on the money?

[Critter-3]

Per the IRS :   https://www.irs.gov/newsroom/more-details-about-changes-for-taxpayers-who-received-advance-payments-...

What about those who already filed their 2020 tax return?

Taxpayers who have already filed their 2020 tax return and who have excess APTC do not need to file an amended tax return or contact the IRS. Instead, taxpayers should follow the below procedures:

If a taxpayer has excess APTC, filed their return with Form 8962 and it's still being processed: The IRS will reduce the excess advance Premium Tax Credit repayment amount the taxpayer reported on their 2020 Form 1040 or Form 1040-SR, Schedule 2, Line 2, and Line 29 of Form 8962 to zero and process their return. There is no need to contact the IRS. If a taxpayer receives a IRS letter about excess APTC for tax year 2020, they should disregard the letter.

If a taxpayer has excess APTC and filed their return without Form 8962: The individual might have received a letter from the IRS. If they have excess APTC for 2020, they should disregard the IRS letter asking for a missing Form 8962. The IRS will continue processing the 2020 return without Form 8962. If the taxpayer didn't get a letter about a missing Form 8962, the IRS will process the 2020 without Form 8962. If they didn't file a Form 8962 but still reported an excess advance Premium Tax Credit repayment amount on their return, the IRS will reduce it to zero and process the return. There is no need to contact the IRS.

If a taxpayer paid an excess APTC repayment amount when they filed their return with Form 8962: Individuals in this situation should not file an amended tax return to get a refund of this amount. The IRS is taking steps to reimburse taxpayers who filed Form 8962, reported, and paid an excess advance Premium Tax Credit repayment amount with their 2020 tax return before the recent changes made by the American Rescue Plan Act of 2021. Individuals in this situation should not file an amended return solely to get a refund of this amount. The IRS will provide more details soon.

If a taxpayer is claiming net PTC and filed their return without Form 8962: They will receive a letter from the IRS asking for a completed Form 8962. Taxpayers claiming a net PTC must file Form 8962 when they file their 2020 tax return. If they filed a 2020 tax return and claimed a net PTC but did not file Form 8962 with their return, they should respond to the IRS notice they received or will soon receive. The IRS may need more information to process their 2020 return if there's an amount claimed on Form 1040 or 1040-SR, Schedule 3, Line 8. Individuals are eligible for net PTC for 2020 if their PTC for 2020 is more than the APTC paid for health insurance coverage and the coverage of their family members for 2020, or if they are allowed a PTC for 2020 and were not eligible for APTC, or chose not to receive the benefit of APTC, at enrollment in their health plan for 2020.

If individuals have net PTC for 2020, they should review and respond to the IRS notice so that the IRS can finish processing their 2020 tax return and, if applicable, issue any refund due.

[Critter-3]

@ewiener1027    Interest is just added to the refund you get.  

[ewiener1027]

I assume the IRS hasn’t updated this? It’s been  quite some time since this was announced and I haven’t seen a credit back from my initial filing. 

[enathan281]

I called the IRS on January 4, 2022 using the preparer preferential phone line to check on my son's advance premium tax credit refund for 2020 ( I am a CPA). They were able to see his return and tell me they still have not processed the refund. They did not have a suggested date as to when it would be done. Sad but true.

[pick4taxes]

I was one of those "eager to be done" (i.e., not very smart) taxpayers in 2021 (filing 2020 taxes). I repaid a significant APTC only to find out days later that the IRS would not be collecting it. After more than a year, I have seen no update on IRS.gov since April 2021, I have been unable to get through to the IRS to speak to a human using normal channels and am now poised to file my 2021 taxes. Further, while my sample size is not huge, I have been unable to identify anyone in my same boat that ACTUALLY RECEIVED their repayment refunded...

Assume the advice is unchanged? Simply wait in the dark...

If anyone has a success story here, please share it.

[retiarius]

Ditto.  It is now June 22, 2022 with no word to my adult child (for whom I am the preparer) about any refund of this 2020/2021 Congressional/IRS/Turbotax gaffe.

Tempted to file amended now but because these types of simple corrections require paper mail-in processing it would likely take many more months due to backlog.

Further, since refunds are depended upon more by the working class this is regressive and unacceptable.   Even family preparers cannot find out about status without onerous paperwork (new form 8821) since the Turbotax "checkbox authority" has expired.   Argghhh!!!!

[Critter-3]

IRS website for tax return status information - https://www.irs.gov/newsroom/irs-operations-during-covid-19-mission-critical-functions-continue

As of June 10, 2022, we had 11 million unprocessed individual returns which include returns received before 2022, and new tax year 2021 returns. Of these, 1.9 million returns require error correction or other special handling, and 9.1 million are paper returns waiting to be reviewed and processed. This work does not typically require us to correspond with taxpayers but does require special handling by an IRS employee so, in these instances, it is taking the IRS more than 21 days to issue any related refund and in some cases this work could take 90 to 120 days. If a correction is made to any Recovery Rebate Credit, Child Tax Credit, Earned Income Tax Credit or Additional Child Tax Credit claimed on the return, the IRS will send taxpayers an explanation. Taxpayers are encouraged to continue to check Tax Season Refund Frequently Asked Questions.

[NCperson]

@retiarius personally, I'd give it until the end of August and then attempt to contact the IRS.  THe IRS reported this week that they still have 300,000 error corrections remaining from the 2020 tax year and there is an aggressive push to resolve all these issues so they can focus on 2021 tax year. 

https://www.irs.gov/newsroom/irs-continues-work-on-inventory-of-tax-returns-original-tax-returns-fil...

[NCperson]

also, please read the link below: 

https://www.irs.gov/newsroom/more-details-about-changes-for-taxpayers-who-received-advance-payments-...

[pick4taxes]

It is now mid-August 2022... I still cannot get through to anyone at the IRS for an update regarding a refund for a repayment of APTC in the 2020 tax year (filed in March 2021). I am one of those folks that filed too early in 2021 (for tax year 2020) and now have to wait for the IRS to modify my return; setting the required repayment to $0. I am patiently NOT filing a 1040-X based on both the IRS and TurboTax community feedback. But how long will I have to wait? and no updates on IRS.gov.

Is there anybody out there??? (Pink Floyd reference)

[NCperson]

personally, I would do three things as this is getting "long in the tooth" and I would be frustrated as well 

1) first, confirm that you had a positive amount on Line 29 of Form 8962.  if it is not positive, there is no adjustment.

2) review your transcript on the IRS website and see if you can  see if there is any movement or indication it is under review.

3) call the IRS.  what other posters have stated it is easier (somewhat) to get through near the end of the day - so try calling around 6:50 p.m Eastern time. 

the 1040-X will take 9-12 months to process, so I wouldn't do that at this time. 

https://www.irs.gov/individuals/get-transcript

[pick4taxes]

Thanks for the feedback.

Followed the first two steps. TurboTax Form 8962, line 29 and the various IRS transcripts show identical, (meaningfully) positive numbers. Curiously, in the transcripts, many line items have two versions, in this case, a first version that is "Excess Advance Premium Tax Credit Repayment Amount" followed by "Excess Advance Premium Tax Credit Repayment Verified Amount". The first has an amount I would expect, the second is $0. Further, everywhere else in the various transcripts (four versions available to me), this occurrence of two versions of a line item shows exactly the same behavior; first one has an amount, second one (with VERIFIED) has $0. Don't know if that means anything. In any case, I find no indicator that my file is being reviewed or worked on. I will try step 3.