Repayment of Excess Advanced Premium Tax Credit

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Section 9662 of the American Rescue Plan Act of 2021 eliminates the requirement to repay excess advanced premium tax credit under ACA for the tax year 2020 only. For those who already filed tax returns with this repayment, the IRS has instructed them not to file amended returns for this reason alone as it will be automatically fixed.

But for those who have not filed yet, what is Intuit/ProSeries doing to modify the tax software to comply with this new tax provision?

ProSeries Basic

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mrpoohAnswer

Level 2

Mr Mrpooh,

We got no choice but to wait for the IRS to update form 8962 and for Intuit to update the software accordingly, otherwise, if you file the return now, you would have the client pay for the excess premium that is no longer due.

Thanks, I'll do that.

abctax55

Level 15

1) The IRS has advised to NOT amend returns for the UCE (Unemployment Compensation Exemption). They have not (to my knowledge) address the APTC issue.

2) The IRS has to revamp the Form 8962 to deal with ARPA. Once the IRS does so, then the software companies can move forward. Their hands are tied until the IRS takes action, then it will take time to rewrite the software AND then get IRS approval.

Don't expect it next week.....

HumanKind... Be Both

R

rgimenaAuthor

Level 3

Thank you for responding to my query. I agree with your point 2).

For the record, the IRS has also advised not to amend returns for the excess advanced premium tax credit. See message below from the IRS website:

Questions and Answers on the Premium Tax Credit

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. For the latest updates, check IRS.gov/coronavirus.