Repayment of Excess Advanced Premium Tax Credit

[rgimena]

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?

[abctax55]

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.....

[rgimena]

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.

[mrpooh]

Any clues as to whether one might wait until the new filing deadline of May 17 2021 to see if Form 8962 has been adjusted to reflect a new policy (and TurboTax adjusting their calculations according), or just pull the trigger and file the return now, and "trust" that if a refund of the excess advance premium tax credit repayment on Line 29 of Form 8962 is owed back, it will be issued in some way, at some point in the future?

I hear you not expecting anything next week ;-), but I'm wondering if there is any projected time-frame for a decision on this?  Or would one simply need a crystal ball?

Cheers

[abctax55]

@mrpooh   and TurboTax adjusting their calculations according...

We don't  *DO* TurboTax here.

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.

[rgimena]

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. 

[mrpooh · Accepted solution]

Thanks, I'll do that.

[MrSolver]

Can I complete schedule3 Part I of 1040 worksheet, by filling in line K by typing in Form 8962 then putting in the same positive number from line 29 of Form 8962 so that I don't have to pay back the excess advance subsidy? That seems to work for me with Turbotax...

[abctax55]

Generally, TurddohTax solutions are not acceptable to "professional" tax preparers.

Are you one?

[rgimena]

Unlike what it did to exclude $10,200 of unemployment compensation (UCE) on schedule 1, the IRS has not yet provided instructions on how to offset the repayment of advanced excess premium tax credits (form 8962) even on a paper tax return submission. I would not advise using schedule 3 as we don't know whether the IRS would opt for this or would rather make the adjustment on the form 8962 itself.   

[rgimena]

We prepare taxes under the same set of rules and regulations regardless of whether we're self-preparers using Turbo Tax or professional tax preparers using ProSeries. Please refer to my reply to the question of the Turbo tax user. 

[MrSolver]

Another option not returning the excess advance subsidy is to complete the 'Shared Policy Allocation Information Smart Worksheet? Put in 100 for Premium Percentage, and 0 for Advance Payment of the PTC Percentage. Fill the Start month (1) and Stop month (12). Does the IRS really care as long as the math works correctly? Otherwise, we just wait for the overworked IRS...

[abctax55]

Ummm  no.... I would have to disagree.

Self-preparers are NOT subject to Circular 230 regulations.

And trying to figure out ways to circumvent the new law is unprofessional.

[rgimena]

Mr Solver, that would be providing false information. 

[rgimena]

You're right, professional tax preparers are subject to additional regulations under Circular 230. But I believe the question being raised is a basic one across the board.   

[MrSolver]

I did guess correctly on the last fix for $10200 UI benefit exemption by the IRS. Just wondering how the IRS will fix the Excess Advance Subsidy issue. I likely just wait for their actual fix from the IRS, even though the final math result is correct and NOT false with those above fixes!

[Havinfunone]

I'm a ProSeries user and a TurboTax Live expert so the two are intertwined for me. I look to both to see what the other will do. Intuit is good about updating the two fairly simultaneously. I "DO" both.

[Havinfunone]

I have a client that just received an IRS letter 1201C because they didn't tell me they had a 1095-A so just not including it obviously isn't the answer.

[MrSolver]

Agree that not including 1095-A is a no no, since the IRS will quickly catch that error.

[Illni]

any more updates from IRS on Form 8962 "fix"?

[birch]

I heard Drake updated their software a week ago so hopefully in the works.  No other software that I know of has updated yet.

[abctax55]

AND Drake's update had several mathematical errors from what I have "heard".....

[rniinc]

**bleep**

[rgimena]

ProSeries just updated to comply with the American Rescue Plan Act provision on not applying the excess advance premium tax credit repayment for tax year 2020. While the excess advance premium is still reported in Form 8962, it’s no longer entered in line 2 of Schedule 2, therefore no additional tax is incurred for this item in form 1040. There you go, problem solved

[sthuttoncpa]

Lacerte now seems to have updated the program for the exclusion of the repayment of the premium tax credit.  However, now the Form 8962 isn't included at all with the forms to efile.  Also, if the client owes taxes with the filing, the client letter still includes the statement regarding the repayment, even though it is not included in the amount owed.  If the client is getting a refund, there is no statement in the client letter regarding the premium tax credit.  Any idea why this is?  Should the Form 8962 still be included with the filing?

[qbteachmt]

@sthuttoncpa 

You asked a Lacerte question in this ProSeries forum. Just like those who ask about TurboTax, you should know that all of these are Programs and they all are Different.

That's sort of the point of user forums = to help with specific Program functions.

ProSeries users cannot explain TurboTax or Lacerte. And this is peer users, not customer support.

It helps not to ask about a Chevy when you are visiting a Honda forum, too.

[MrSolver]

TurboTax has released new updates this morning and it seems to fix the issue of repayment of excess advance subsidy. Form 8962 is still there but the excess advance repayment amount is no longer transfered over to Schedule 2 Line 2.

[qbteachmt]

@MrSolver 

Why not Go Help The TurboTax People?

You seem to be lost on the internet.

You’ve come to a Peer User community for Intuit Tax Preparation products supporting tax preparation professionals using ProSeries, Proconnect and Lacerte , and you may be looking for support as an individual taxpayer. Please visit the TurboTax Help site for support.

Thanks.

[qbteachmt]

@Alee-W 

Do you have the ability to Lock this topic? Thanks.

[MrSolver]

I'm not lost, far from it. I'm also trying to help some people including experts who are using ProSeries, Proconnect and Lacerte...

[qbteachmt]

"I'm also trying to help some people including experts who are using ProSeries, Proconnect and Lacerte..."

No, you're not.

Those programs already got the updates, and it's all in each forum section for each program.

What you are doing is Depriving the TurboTax community of your peer participation, because putting TT info here in ProSeries is meaningless.

If you want to contribute to a community, go to the Right One.

[qbteachmt]

@IntuitAustin 

Please, can you Lock This Topic. Thanks.

[MrSolver]

In my humble opinion, "peer review" is NOT a meaningless excercise.

[Illni]

my understanding is that the 8962 is NOT efiled if there is a "repayment due" -- only provided for our review copy -- which makes perfect sense to me, administratively. Why file it if there's no repayment to make? Why change the form for one lousy year? Sometimes I think we can wound up too tight about "filng a complete and accurate return". Sometimes you just have to exercise good judgement -- if there's no harm done to the government and no harm done to the taxpayer, then we've done our job, even if it looks a bit bastardized.

[qbteachmt]

@MrSolver 

"In my humble opinion, "peer review" is NOT a meaningless excercise"

What's that even mean?

Because you came here, where Professional Tax Preparers are "on the job" using ProSeries, Lacerte and ProConnect tax preparation programs, to prepare their Clients' returns. You are not working for another person, and you are not using any of these three programs.

How lost can you be, and still insist you need to update this group with TurboTax info?

And why do you not want to update the TurboTax community, since you are using that program, and that would make you a peer of that community?

Again:

You are lost on the internet. You are essentially trolling people who are "at work" right now, using this resource which is meant for using ProSeries, specifically.

That is the Title at the top of this website. Look for yourself.

It's like you barged into an office to announce, "Hey, everyone, pay attention to Me. I have something to say that is meaningless to your job right now, but I want your attention anyway."

How are you not embarrassed of your behavior here? Why would you not go to the TurboTax forum to share what you know?

"I did guess correctly on the last fix"

But imagine if this was a community of Physicians. Would you like them to "guess?" Because the people here using ProSeries are supposed to Know. They are being paid by their clients.

You really are lost.

[mrpooh]

Greetings again,

First, since I am not a professional tax preparer (I am a healthcare provider), please feel free to ignore my message as I wish to respect your work time.

Second, I give you all my empathy for how annoying or frustrating it may be to have non-professionals posting in this forum, especially if their contributions are irrelevant to the topic.

I wish to briefly share how I landed here, in hopes that it may help offset some frustration: I found this forum by a simple search related to my topic of interest. I signed up having no idea that it was meant for professional tax accountants. In that vein, I was ignorant of what the word "ProSeries" actually meant. I am so ignorant that I thought it just referred to an upper-level discussion group, which I thought would be a better source of info than the "regular community." And I have in fact appreciated reading the professional perspectives on this situation.

I'm just curious, and I'm not looking for much more than a "yes" or "no" answer:
Was it of any use to any of the professionals here to know – either for their sake or for the sake of any of their clients – that TurboTax finally implemented changes to their software to reflect the intended provisions of the American Rescue Act, as they affected the APTC? Or is that completely irrelevant to this thread?

Again, I ask in the spirit of curiosity and a desire to be educated, and with the earnest intention to respect the guidelines of the group.

Regards

[qbteachmt]

@mrpooh 

"especially if their contributions are irrelevant to the topic."

It's the Program at the Top of this page that this community is using and why this community exists. If you are using ProSeries and have a question or issue, that's this community.

I can give you the link for TurboTax, again. It's in this topic. Intuit has sections there for the common discussion of tax, business and finance; additionally, for using their Disk/desktop program and for their online program.

That's not this place. This is not a General Discussion forum. It's for preparers that are using ProSeries. Again, look at the Top. There is the Web Address. It shows ProSeries Tax. That's a Program. A Specific Program in use.

Your Intuit ID that logs in here, will log into the TurboTax forum. I encourage you to Go There, Log In, and join that community.

You found this place as a web search results, which simply tells you Intuit has good search engine Optimization. It's like this:

You are a long haul trucker, on the interstate system, and you like to listen to Ballet on the radio. You pulled off the road to find a local diner, and you stopped into the Best Signage location, which serves Mexican food. You don't like Mexican food. But now you insist you be seated and served something other than Mexican food, because, even though that diner is serving Mexican food, you also now insist it needs to serve you what you want, which is not Mexican food. They direct you down the block to a diner that meets your preference, but you insist on staying in the Mexican diner and making a scene until you get served something not Mexican food.

"Was it of any use to any of the professionals here to know – either for their sake or for the sake of any of their clients – that TurboTax finally implemented changes to their software to reflect the intended provisions of the American Rescue Act, as they affected the APTC? Or is that completely irrelevant to this thread?"

It's irrelevant to this entire Forum. If you drive a Chevy, do you care that Honda finally put a brighter bulb in the dash for the turn-signal indicator?

Someone who cares about TurboTax would be at the TurboTax forum, watching for updates there and participating there. The clients of professional preparers here are not also using TurboTax; they are paying someone else to do their returns, and TurboTax is DIY. See the conflict? Professional preparers are not supposed to be using TurboTax by end user license terms. And if they are, being in the ProSeries Tax community doesn't get them any info on TurboTax.

You are mixing up Programs. Should a Mac User care about a virus impacting only Windows systems? Should a Windows user care about a Chromebook problem?

And that makes my point.

Does anyone eating at the Mexican diner care that there is Not Mexican food down the street at the Non-Mexican diner? I think they already know that. And that's where they would be, if that is the food they want.

Geez.

[qbteachmt]

"In that vein, I was ignorant of what the word "ProSeries" actually meant. I am so ignorant that I thought it just referred to an upper-level discussion group, "

Let's try this, again.

This is the Wording of a Canned Response we have been given by Intuit to post in these topics. It's been posted before, and here it is again. Please read it.

You seem to be lost on the internet.

You’ve come to a Peer User community for Intuit Tax Preparation products supporting tax preparation professionals using ProSeries, Proconnect and Lacerte , and you may be looking for support as an individual taxpayer. Please visit the TurboTax Help site for support.

Thanks.

[dkh]

@mrpooh  I'm just curious, and I'm not looking for much more than a "yes" or "no" answer:
Was it of any use to any of the professionals here to know – either for their sake or for the sake of any of their clients – that TurboTax finally implemented changes to their software to reflect the intended provisions of the American Rescue Act, as they affected the APTC? Or is that completely irrelevant to this thread?

NO

[MrSolver]

Fact is as of today 4/8/21, there is no more issue with Excess Advance subsidy repayment for my customers. Like it or not, we are all now extremely happy. TurboTax rules, thank you!

[abctax55]

@MrSolver 

"...for my customers. Like it or not, we are all now extremely happy. TurboTax rules,"

This implies you are using Turddoh Tax to prepare tax returns for other for compensation.

I do hope you are aware that's illegal?

[dkh]

---

@MrSolver wrote:

 TurboTax rules, thank you!

  Whatever gets you through your day. 

[MrSolver]

My customers are my loved ones! Family always comes first, right? Hahaha

[qbteachmt]

@MrSolver 

"Fact is as of today 4/8/21, there is no more issue with Excess Advance subsidy repayment for my customers. Like it or not, we are all now extremely happy. TurboTax rules, thank you!"

Did you tell the TurboTax Community about this?

Because no one here really cares about an update to a program they are not using for their customers.

Let's try this one more time:

You seem to be lost on the internet.

You’ve come to a Peer User community for Intuit Tax Preparation products supporting tax preparation professionals using ProSeries, Proconnect and Lacerte Programs, and you may be looking for support as an individual taxpayer. Please visit the TurboTax Help site for support.

Thanks.

[MrSolver]

Let's try this one more time...just follow how TurboTax fixes the issue with Excess Advance Subsidy repayment for other software packages. Like it or not, TurboTax rules!

Have a great weekend everyone and happy tax filing! 🙂

[qbteachmt]

No one here is "following" TurboTax. It doesn't apply to this community. You are in the wrong place. Go tell it to the TurboTax people. If they didn't notice, you would be bringing them Good News. Be Their Cheerleader. Not our Troll.

The users in this ProSeries Tax Program peer community forum are using ProSeries Tax Preparation Software to do their Clients' tax returns. That's clear if you look at the top, for the Web Page and at the Home Page, because it shows the three programs for tax preparation in use here are Lacerte, ProConnect, and ProSeries. These are Programs that the professionals paid thousands of dollars to use in their offices and on their jobs.

This is not a TurboTax forum. If someone has a TurboTax consideration, they go to the TurboTax forum.

@MrSolver 

You remind me of a visit to Iguazu Falls in Brazil, where an American in a crowd was complaining about all the people in Brazil that are not understanding him speaking in English, so he says it Louder. Stating your position over and over doesn't change the fact that you could be Helping the TurboTax Community, posting all of this over there.

You are a lost resource to that community, and a bit of a problem here.

[MrSolver]

You seems a bit jealous about TurboTax? Fact is TurboTax quickly fixes the issue with Excess Advance Subsidy repayment issue. You may not care at all, but I bet there are others on this forum who want to know a bit about how this repayment has been fixed properly, particularly with the popular TurboTax!

My handle is MrSolver and I love to share my insights but I would love to learn from others as well! Knowledge is power, but I don't really care about your pointless "Brazil" story or others that you often ramble about on this forum...LOL

[qbteachmt]

@IntuitBettyJo 

Can't someone please Lock this TurboTax topic? Thanks.

[abctax55]

@MrSolver 

We are tax professionals.

YOU aren't.

We don't give a **bleep** about Turbo Tax .

@IntuitAustin @IntuitBettyJo  -  Why in hell can you not LOCK this post?