Premium tax credit

[grandmabee]

taxpayers are over the 401% so all 12,000. credit should be paid back in normal year.  Great for this year.

But they are self employed and take the self employed health insurance deduction.  Does that change for this year?  Can they get a deduction for the amount they should have paid back but didn't have to.  Now that I type it out it seems that can't be, didn't actually paid it.  But I thought I read where they get the extra benefit this year.  Any help would be appreciated.

[BobbyCPA]

My first thought is that deducting the forgiven payback amount is like double dipping, but then so is deducting proceeds of a tax-free PPP loan used for business expenses. 

[BulldogTom]

18 hours ago, grandmabee said:

taxpayers are over the 401% so all 12,000. credit should be paid back in normal year.  Great for this year.

But they are self employed and take the self employed health insurance deduction.  Does that change for this year?  Can they get a deduction for the amount they should have paid back but didn't have to.  Now that I type it out it seems that can't be, didn't actually paid it.  But I thought I read where they get the extra benefit this year.  Any help would be appreciated.

I think they only get what they paid.   In a "normal" year, the amount that they have to pay back from the PTC would be added to the amount paid in the tax year the PTC was related to.   So my first thought is that they cannot take an amount that was not paid out of pocket or repaid on the reconciliation form.

UNRESEACHED - so take it for what it is worth.   In this crazy year, crazier things have happened.

Tom
Modesto, CA