Premium Tax Credit New Stimulus Act (ARPA)

[glendiver]

I was reading here that there will be an update today March 18) for the new stimulus tax law changes.  The only thing mentioned is the unemployment exemption.  I was reading elsewhere that there was also a change to the law regarding the Premium Tax Credit. For 2020 where the advance credit payments exceed the PCT no additional income tax will be imposed.

Will the update fix form 8962 to account for this?

[taxshack]

The notice they put out said they would "address the federal updates" so I'm hoping it is inclusive.  Sounds like we won't get the update though until later this afternoon/evening.  Keeping fingers crossed.

[rbynaker]

I would not expect APTC repayment to be updated today.  Intuit generally programs based on form instructions.  The IRS released instructions last Friday (3/12/21) regarding how to report excluded unemployment income but they have not released instructions on how to report APTC repayment limitations.  Presumably it will be as simple as limiting the amount to $0 but the IRS and the software companies need to reprogram so that 4-6=0 instead of 4-6=-2.

[me112233]

So, put another way, proseries isn't going to fix this any time soon?  After the IRS gave rather simple guidance on the unemployment, It took proseries almost a week to give us a patch.  And frankly, that one was so simple, we really didn't need a patch; all I had to do was type in negative number on line 8 of Schedule 1 and I was done. 

[abctax55]

@me112233 

THIS thread has nothing to do with unemployment.  That issue has been fixed with a recent update.

This thread is asking about the APTC aka premium tax credit payback revision/clawback.

And until the IRS takes action & revises the form, Intuit (as well as all other software providers) has their hands tied.

Put the blame on Congress who passes these last minute retroactive tax law changes 2/3rds of the way thru filing season.

[taxshack]

I see what you are saying, but we actually did need a patch for the unemployment because the legislation disregarded 7 other areas of tax code and needed to be accounted for.  It also needed to be accounted for with state returns.  I hope the ones you did the manual adjustment on were just simple returns.  As for APTC, $hi+ rolls downhill and we are the bottom.  Congress passes it, IRS has to come up with the changes, software has to code the changes and get approval from the IRS for the MeF system, and then we get it.  As there still has been no mention or update from the IRS regarding this issue, I think we'll be waiting awhile.

[ddhub]

Help re: the timing of the software update for the APTC repayment for 2020.  I had about $10k in APTC for 2020 (line 29 of form 8962).

Last week the TT software (rightly) suggested holding off on filing my federal taxes until TT could update the software to incorporate the elimination of the requirement to repay the APTC.  I downloaded an update this afternoon and looked to see if the update was incorporated.  There was no change to form 8962 or my numbers; however, there was also no notice to hold off on filing my federal return.  

Does anyone know when TT will have the software updated?  I've seen a reference for an option to sign up for an email when this update is implemented, but don't know where to go.  If anyone can point me in the right direction, that would be most appreciated.

[abctax55]

@ddhub 

Hi there,

You’ve come to an Intuit site supporting tax professionals, and you may be looking for support as an individual taxpayer. Please visit the TurboTax Help site for support.

Cheers!

[me112233]

Gee gads.  I didn't claim this thread had anything to do with the unemployment issue, I simply interjected that it took intuit a week to created an rather simple update after the IRS guidance had been issued, and the projected that similar delays were likely with premium tax credit issue.

[Bethynp]

Today is March 28...crazy that we have no update yet for the APTC yet.  I have too many files on my floor now to count that are waiting for updated software.  The extension to May 17th isn't gonna help me for the last month while I scramble to get all these tax returns done.  Maybe tomorrow?  Getting very close to retirement...shoulda happened last year or maybe two years ago before the GOP tax plan...

[abctax55]

@Bethynp -  Take it up Congress, then the IRS.  As has been posted several times, until the IRS revamps Form 8962, there is *absolutely* nothing the software providers can do. 

[Bethynp]

Already passed and signed into law (American Rescue Plan) March 12, 2021.  

[abctax55]

Really?  That long ago?

https://www.irs.gov/affordable-care-act/individuals-and-families/premium-tax-credit-claiming-the-cre...

[Ga1lTaxed]

It is my understanding that IRS has now instructed preparers to file the return without the 8962 at all if it results in a balance due for APTC.  I still have not seen any information about when or if Intuit will be addressing this.  I can't remover the 8962 and leave the 1095A because the software just adds the form back on.  I don't like to remove the 1095A.

[abctax55]

https://www.irs.gov/affordable-care-act/individuals-and-families/premium-tax-credit-claiming-the-cre...

[Bethynp]

Spoiler

The only tax software that I know of that has remedied the NONrepayment of the APTC, is Drake.  You'd think that Proseries could figure this out by now, no?

[ddhub]

Agreed!  This is something that TT needs to fix - but more importantly provide updates/notifications of their progress.  If anyone from TT is reading this, please let us know how we can be alerted when this programming change is implemented.  What would also be helpful is an estimate of timing - assuming this doesn't get completed before May 17, I assume I'll have to file an extension.

[glendiver]

Where did you see this on the IRS web site?  All I see is do not file an amended return if you have already filed and paid.

[abctax55]

@ddhub 

Hi there,

You’ve come to an Intuit site supporting tax professionals, and you may be looking for support as an individual taxpayer. Please visit the TurboTax Help site for support.

Cheers!

[taxshack]

Proseries updated yesterday.  The APTC no longer carries to Schedule 2.

[taxshack]

But watch it because it does not account for the Self-Employed Health Insurance deduction.  You have to unlink the 1095-A and figure the allowable amount yourself.

[Craveking]

I see the excess payments issue in TT being forgiven but still being added to total medical expense and obviously reducing net income. Is this by design or still needs to be addressed?

[Hurricaneman1]

What do you mean? What did turbo tax do? Is all the excess amounts of premium credit forgiven ? 

[Craveking]

The repayment is reversed but the amount you would have repaid is still added to your medical expenses as if you repaid the premium. So the result is not only wiping out the repayment but lowering net income due to increased medical expenses. 

[abctax55]

@IntuitAustin 

@IntuitBettyJo 

Can you PLEASE do something?  Not only is the barn door open, the dam & levies have broken.

[Hurricaneman1]

I'll have to look at it when I get to turbo later. So this seems like a good thing from what you indicate .

[abctax55]

O M G.....  it just won't stop.

PLEASE MODS.... can this be locked?  Please, please pretty please ?????

[Hurricaneman1]

We are having a discussion about premium tax credits. 

Why are you acting like it's an unintelligent conversation?

Do you have anything to add that is meaningful??