Update for PTC owed

[Adam R]

The latest update is no longer attaching the 8962 for anyone that owes repayment of the PTC. Do you know where the guidance for this came from?  I haven't seen anything from the IRS on this yet.

Also, Lacerte is still allowing a deduction for self employed health insurance for the amount that would have been paid back, but is not being paid back. This doesn't seem correct. Is there any guidance for this stance as well?

[amynewberg]

Hi Adam - I called the Lacerte Help Desk number to ask the same question on the 8962 and they are "looking into it".   

[pamdory]

I've been watching for this guidance as well and haven't seen it on irs.gov.  I'm not comfortable with that SE treatment until I can see it for myself...

[ike484]

It is not just the SE health insurance deduction that it is increasing.  It will also increase the Schedule A  medical deduction if they are not self-employed.

[qbteachmt]

"The latest update is no longer attaching the 8962 for anyone that owes repayment of the PTC. Do you know where the guidance for this came from?"

The ARPA bill means that no one has to repay. It's in that law. It's for 2020, only.

[Adam R]

Yes, but the IRS has not come out with any guidance, that I am aware of, on how it is supposed to be handled or updated the 8962 for it. It seems odd to just not file the form showing the calculation. Then there is the bigger issue about being able to deduct something you are not paying for.

[qbteachmt]

Alright, let's review:

The ARPA bill passed last month waives the repayment of APTC. On this forum, since the date the bill was signed, people complained that Lacerte was not updated for Form 8962 and they were all stuck holding these returns until this update came out. Which it has. And now you think it's the wrong thing to see?

[qbteachmt]

Read this topic to the End:

https://proconnect.intuit.com/community/lacerte-tax-discussions/discussion/form-8962/00/151499

[Adam R]

Personally, I don't like filing tax returns with unsupported positions. I know there is a lot of odd things this year, but claiming an SE health insurance deduction or a Sch A deduction for something they did not pay seems a little incorrect. So, yes I think justification for Lacerte's position on claiming this is a reasonable request. 

[Adam R]

A quote from Drake is nice, but where is the IRS guidance they are referring to?