Paper filing due to repayment of APTC

[Jacquelyn924]

 Client should have been covered under an employer plan but decided to decline that coverage and get coverage on the market place (didn't want to change doctor) The client was not eligible to receive APTC but did for May-Oct these premiums need to be repaid. The only way I've found to do that is on screen 39.1 "Excess advance premium tax credit repayment" but if I put the repayment amount in this box I need to paper file the return. Is there any other way to do this without having to paper file or is this simply how it goes for tax payers who took APTC they were never eligible for?

[TaxGuyBill]

If they do not qualify for the credit for a month, you enter $0 for the Second Lowest Cost Silver Plan (SLCSP) for that month.

[Jacquelyn924]

I gave that a try and unfortunately Lacerte still didn't calculate repaying the full amount they need to repay. It hits the repayment limitation which my client doesn't qualify for as they aren't allowed to have any PTC

[TaxGuyBill]

As far as I know, the repayment limitation still applies.  I have found nothing that says the repayment limitation does not apply even if they never qualified for the credit in the first place.

[Jacquelyn924]

I found this article that says you can't get the PTC if you have been offered adequate employer health insurance https://www.healthreformbeyondthebasics.org/key-facts-employer-sponsored-coverage-and-premium-tax-cr...

It says you don't qualify for the PTC, but you're right it doesn't mention repayment caps. You're not suppose to received APTC if the first place because you're suppose to disclose to the Marketplace that you were offered health insurance via the employer, but with the changes that happened in May that reduced the cost of health insurance my client accidentally started to get subsidy. They did disclose at the start of the year that they don't qualify for the PTC. 

hmm I guess I'll need to do more research to see about that repayment cap applying even if the taxpayer never should have received APTC due to being disqualified.