APTC solved!

[GLJEANNE]

Seems like it shouldn't have taken so long to come up with such a simplistic solution , but here we go:  If someone owes APTC, just delete the form from the return.  LOL

"As part of the American Rescue Plan, it was determined that any excess advance health insurance premiums credits from Form 8962, Line 29 do not need to be repaid (Form 1040, Schedule 2, Line 2).

On 4/1/21, IRS provided guidance for preparers and announced the following:

Preparers should not send or e-file Form 8962 when Line 29 is greater than 0

IRS will suspend any correspondence that is generated if a taxpayer gets Premium Tax Credit (PTC) and does not send in the Form 8962 reconciliation 

Exception: Form 8962 will still be required to claim any credit on Line 26 

We have not yet updated ATX to accommodate this change. 

 

What this means for you: For returns where Line 29 is greater than 0, you can:

Discard Form 8962 from the return and e-file; OR

Wait until the ATX change is made to accommodate this regulatory update."

 

[WITAXLADY]

well I do not know if this will work - but I knew if I came here - there would be an answer!!

And this is what I was looking for,,

I may delay as I am still waiting from last years!! 1095-A refunds..

D form WI

[TomMonarch]

Does the $10200 unemployment count as income towards the Premium Tax Credit?

 

Tom Patchan EA

[schirallicpa]

Can I please amend more returns this year.  Please.  This is so fun.  

 

Does any single member of the idiot congress passing this crap think for one minute that maybe we are too late to make changes and let's hold that thought for next year?!

[Gail in Virginia]

Is there someplace on the IRS website where instructions say to not file the 8962?

[ILLMAS]

So a S-Corp owner who received PPP, their business made more income in 2020, paid themselves more and is above the PTC threshold get one more freebie?

[Randall]

2 hours ago, ILLMAS said:

So a S-Corp owner who received PPP, their business made more income in 2020, paid themselves more and is above the PTC threshold get one more freebie?

Yes, it goes on.

 

[BP.]

On 4/8/2021 at 8:20 AM, Gail in Virginia said:

Is there someplace on the IRS website where instructions say to not file the 8962?

IRS Newswire 9 Apr

 IR-2021-84

"The Internal Revenue Service announced today that taxpayers with excess APTC for 2020 are not required to file Form 8962, Premium Tax Credit, or report an excess advance Premium Tax Credit repayment on their 2020 Form 1040..."

[Abby Normal]

The problem is, they might be entitled to additional PTC and without the 8962, they'll lose out.

[Lion EA]

Only "taxpayers with excess APTC for 2020 are not required to file Form 8962." If your client is entitled to additional PTC, of course, you include the 8962!!

[jklcpa]

On 4/8/2021 at 8:20 AM, Gail in Virginia said:

Is there someplace on the IRS website where instructions say to not file the 8962?

IRS made it official in IR-2021-84. Got this in an email today:
 

Quote

Issue Number:    IR-2021-84

IRS suspends requirement to repay excess advance payments of the 2020 Premium Tax Credit; those claiming net Premium Tax Credit must file Form 8962

WASHINGTON — The American Rescue Plan Act of 2021 suspends the requirement that taxpayers increase their tax liability by all or a portion of their excess advance payments of the Premium Tax Credit (excess APTC) for tax year 2020. A taxpayer’s excess APTC is the amount by which the taxpayer’s advance payments of the Premium Tax Credit (APTC) exceed his or her Premium Tax Credit (PTC).     

The Internal Revenue Service announced today that taxpayers with excess APTC for 2020 are not required to file Form 8962, Premium Tax Credit, or report an excess advance Premium Tax Credit repayment on their 2020 Form 1040 or Form 1040-SR, Schedule 2, Line 2, when they file.

Eligible taxpayers may claim a PTC for health insurance coverage in a qualified health plan purchased through a Health Insurance Marketplace. Taxpayers use Form 8962, Premium Tax Credit to figure the amount of their PTC and reconcile it with their APTC. This computation lets taxpayers know whether they must increase their tax liability by all or a portion of their excess APTC, called an excess advance Premium Tax Credit repayment, or may claim a net PTC.

Taxpayers can check with their tax professional or use tax software to figure the amount of allowable PTC and reconcile it with APTC received using the information from Form 1095-A, Health Insurance Marketplace Statement.
 
The process remains unchanged for taxpayers claiming a net PTC for 2020. They must file Form 8962 when they file their 2020 tax return. See the Instructions for Form 8962 for more information. Taxpayers claiming a net PTC should respond to an IRS notice asking for more information to finish processing their tax return.

Taxpayers who have already filed their 2020 tax return and who have excess APTC for 2020 do not need to file an amended tax return or contact the IRS. The IRS will reduce the excess APTC repayment amount to zero with no further action needed by the taxpayer. The IRS will reimburse people who have already repaid any excess advance Premium Tax Credit on their 2020 tax return. Taxpayers who received a letter about a missing Form 8962 should disregard the letter if they have excess APTC for 2020. The IRS will process tax returns without Form 8962 for tax year 2020 by reducing the excess advance premium tax credit repayment amount to zero.

Again, IRS is taking steps to reimburse people who filed Form 8962, reported, and paid an excess advance Premium Tax Credit repayment amount with their 2020 tax return before the recent legislative changes were made. Taxpayers in this situation should not file an amended return solely to get a refund of this amount. The IRS will provide more details on IRS.gov. There is no need to file an amended tax return or contact the IRS. 

As a reminder, this change applies only to reconciling tax year 2020 APTC. Taxpayers who received the benefit of APTC prior to 2020 must file Form 8962 to reconcile their APTC and PTC for the pre-2020 year when they file their federal income tax return even if they otherwise are not required to file a tax return for that year.  The IRS continues to process prior year tax returns and correspond for missing information.  If the IRS sends a letter about a 2019 Form 8962, we need more information from the taxpayer to finish processing their tax return. Taxpayers should respond to the letter so that the IRS can finish processing the tax return and, if applicable, issue any refund the taxpayer may be due.

See the  Form 8962, Premium Tax Credit, and IRS Fact Sheet for more details about the changes related to the PTC for tax year 2020.

 

 

[TexTaxToo]

This is the website link to IR-2021-84:

https://www.irs.gov/newsroom/irs-suspends-requirement-to-repay-excess-advance-payments-of-the-2020-premium-tax-credit-those-claiming-net-premium-tax-credit-must-file-form-8962

[Abby Normal]

2 hours ago, Lion EA said:

Only "taxpayers with excess APTC for 2020 are not required to file Form 8962." If your client is entitled to additional PTC, of course, you include the 8962!!

I'm still waiting for the form revision because those over 400% might well be entitled to additional credit, especially if they didn't take the full advanced credit they were entitled to.

[TexTaxToo]

4 hours ago, Abby Normal said:

I'm still waiting for the form revision because those over 400% might well be entitled to additional credit, especially if they didn't take the full advanced credit they were entitled to.

Are you talking about the change to allow more PTC, and PTC for those over 400%?  Those changes only apply to tax years 2021 and 2022.  The change to allow PTC for anyone getting unemployment applies only to tax year 2021.  I doubt there will be a form revision for 2020.

[Randall]

ATX just had a Form update and included 8962.  At the top of the Form, it says line 29 will be set to zero but it did not reset my client amount on line 29 to zero.  I think I still need to discard the Form 8962 and show zero to be paid back.  Anyone think so?

 

[Randall]

15 minutes ago, Randall said:

ATX just had a Form update and included 8962.  At the top of the Form, it says line 29 will be set to zero but it did not reset my client amount on line 29 to zero.  I think I still need to discard the Form 8962 and show zero to be paid back.  Anyone think so?

 

I take that back.  After closing the app and going back in, line 29 was reset to zero.  Does this mean we go ahead and include the Form or do we still discard it?

 

 

[BulldogTom]

Just now, Randall said:

I take that back.  After closing the app and going back in, line 29 was reset to zero.  Does this mean we go ahead and include the Form or do we still discard it?

Those of us who charge by the form are keeping it in the return....just saying. 

Seriously, I will be keeping it.   Not just to get paid.   I will probably need the form next year and I want it to roll over in the return.

Tom
Modesto, CA

[Randall]

I can leave the form in my client return.  The red comments in ATX came up.  But when I deleted items in columns A and B, the advance premium amounts remain in column F, totals on lines 25 & 27, but puts zero in line 29.  Then when I create the efile, Form 8962 does not show up in Forms efiled.  So it stays in the return in my ATX (presumably to be rolled over next year) but does not get sent with the efiled current return.