They must file Form 8962 when they file their 2020 tax return. The process remains unchanged for taxpayers claiming a net PTC for 2020. 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. 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 use Form 8962 to figure the amount of their PTC and reconcile it with their APTC. 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).Įligible taxpayers may claim a PTC for health insurance coverage in a qualified health plan purchased through a Health Insurance Marketplace. 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. 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. Go to this IRS website for information. The 2020 federal tax return is correct for the PTC adjustment. If Form 8962 is being generated, why isn't Schedule 2? I think there is something amiss. Because Schedule 2, Line 3 is blank on Form 1040, it did not report $800 that it was previously before this latest update. After research what was going on, Form 8962 was still generated, but, Schedule 2 is no longer there. Went in today and installed the latest updates to TurboTax, opened his file and now it is showing he is getting a refund from the Feds. It showed that he was going to owe the Feds. Did my son's return and a Form 8962 was generated as well as a Schedule 2.
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