The American Rescue Plan Act of 2021 (ARPA), enacted on March 11, 2021, suspended the requirement to repay excess advance payments of the premium tax credit (excess APTC, which is the amount by which your advance credit payments for the year exceed your premium tax credit for the year) for tax year 2020. Show
If you already filed a 2020 return and reported excess APTC or made an excess APTC repayment, you don’t need to file an amended return or take any other action. 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 APTC repayment amount to zero. If you have not filed your 2020 tax return, here’s what to do:
For details see the Tax Year 2020 Premium Tax Credit:
For tax years other than 2020, if you get the benefit of advance credit payments in any amount – or if you plan to claim the premium tax credit – you must file a federal income tax return and attach Form 8962, Premium Tax Credit (PTC), to your return. You claim the premium tax credit and reconcile the credit with the amount of your advance credit payments for the year on Form 8962. For tax years other than 2020, you must file a return to reconcile the credit with the amount of your advance credit payments even if you’re usually not required to file. Filing your return without reconciling your advance credit payments will delay your refund and may affect your eligibility for future advance credit payments. For more information on filing a return to claim and reconcile the credit see Premium Tax Credit: Claiming the Credit and Reconciling Advance Credit Payments. Filing electronically is the easiest way to file a complete and accurate tax return. Electronic filing options include free volunteer assistance, IRS Free File, commercial software and professional assistance. focusNode Didn't know it? Knew it? Embed Code - If you would like this activity on your web page, copy the script below and paste it into
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