premium tax credit

[dseplee]

I have a client who received unemployment benefits in January 2021 for unemployment weeks in December 2020 (two weeks in arrears) and reported on the 2021 Form 1099-G.  She did not claim UC benefits in 2021.  Based on reading the instructions, it would appear that the benefits would have had to have been paid/received for eligible weeks in 2021  in order to qualify for the 133% household income on the Premium Tax Credit line 5 of Form 8962.    If the UC benefits were received in 2021 but for 2020 UC weeks, should the 133% household income  and resulting credit still apply?  Thanks for any thoughts!

[Just-Lisa-Now-]

Do they have the 1099g for unemployment benefits paid to them in 2021?

[rbynaker]

My reading of the statute agrees with yours.  See ARPA Sec. 9663.

"who has received, or has been approved to receive,
unemployment compensation for any week beginning during
2021"

[dseplee]

Yes, they do have a 1099-G but the benefits weeks were in 2020.  It seems that technically the benefit weeks need to be in 2021.

[dseplee]

It sure seems like that it the correct interpretation, however, Proseries doesn't let me override the unemployment benefits in 2021 checkbox or the 133% household income. Thanks for the input!

[TaxGuyBill]

Rick, out of curiosity, does Drake have an option to disallow it (or to allow it if the payment wasn't made until 2022)?

[rbynaker]

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@TaxGuyBill wrote:

Rick, out of curiosity, does Drake have an option to disallow it (or to allow it if the payment wasn't made until 2022)?

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I don't see any way to do this return correctly in Drake.

It is a fairly fringe case though and I'm sure with an email to support they would write a patch.  All they need is a checkbox somewhere to turn off the 133%.  I even tried skipping the 1099-G and entering directly on Sch 1 Line 7 but that still triggered the 133%.