Premium Tax Credit

[kjm1059]

My question is in regards to the Premium Tax Credit.

My client rec'd a 1099-A for health insurance.  I completed the 1099-A info in ProSeries and the corresponding Premium Tax Credit Form.  The cover letter states that the premium tax she owes is added to the regular tax.  However, I do not see it on the 1040.  The Premium Tax Credit form shows the amount due (and corresponding calculations) and to be included on Schedule 2 - Additional Taxes. Again, the amt due does not show up on Sch 2 or the 1040, but shows up on the client cover letter.

Of note, my client was married in December 2020.  Not sure if this makes a difference or not.  Her marketplace insurance was purchased in January 2020 - Dec 2020 for herself only.

Anyone know why the Premium Tax Due is calculated but not showing up on Sch 2 or the 1040? Am I missing something here?

[TAXOH]

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

[cktcpa1]

I too am having trouble with the Premium Tax Credit - on Wednesday 4/7 the return and letter seemed accurate to include this payback of the credit due to their earnings.  The Proseries update on 4/8 eliminated the payback BUT the letter still indicated that the credit was being paid back.

I do not understand the software update and clearly there is a mistake in the current version.  Everything I read is they owe the premium credit back to the IRS unless one of this years Covid reforms changed something.

Will ProSeries address this error please

[Mary McDonald]

For 2020 there is no payback of the APTC, however, the IRS has not officially addressed how they want to have that happen.  I would appreciate seeing ProSeries reply to this as well - are we including the form, but not the payback amount?  How is this being handled, please?

[kjm1059]

Thank you.  Appears that the "payback" is currently under IRS review re: American Rescue Plan.

Am I reading this correctly?

[kjm1059]

Thank you.  Seems to be a Proseries programming fix to the cover letter.

[kjm1059]

Thank you!!  Looks like more of a Proseries programming issue to remove the wording from the cover letter.  From 8962 shows the calculations, but does not move it to the 1040.  Complies with IRS, but clearly causes confusion.

Thank you very much!!!  

[IRonMaN]

Just be thankful the software is updated.  Only 1.595759144487 percent of clients read the letter anyway.  

[fallbrookian]

I noticed this too and posted about it earlier. I  edited the standard letter and deleted any reference to the PTC except the paragraph about receiving more money dues to PTC being too low. All reference to overpaying and paying it back have been removed from my standard letter permanently for this year at least. Wouldn't it be nice if  Intuit would notify it's users. 

[kjm1059]

Thank you for the reply.

Better communication would have been most helpful with this situation.

[fallbrookian]

Thank you for posting. I am a California preparer and experienced the same thing and was worried. I believe there is an error now on form 3849, line 11 (d). after the update. I think this line should be the PTC actually received from Federal, on form 1095-A. After the update is shows -0- which is incorrect. The calculations before the update to remove the repayment of excess PTC repayment was calculating correctly and this line was the actual amount they did receive from Federal. I tried to read this instructions to this form, but this line is not addressed in the instructions that I can find right now with the limited time I have. I am holding these returns. Maybe it is correct - but it isn't logical-but then it's California - right? 

[kjm1059]

Thanks for the update.  Far too many mid-season changes.  Great for the taxpayers but major headaches for the practitioners.  Unnecessarily consumes time, which we don't have.

Thank you again for the update.