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According to the IRS, a recent change made through 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 the 2020 tax year for the Health Insurance marketplace. The IRS announced that those with excess APTC for 2020 are not required to file Form 8962 or report an excess advance Premium Tax Credit repayment.

According to the IRS, excess APTC is the amount by which the taxpayer’s advance payments of the Premium Tax Credit (APTC) exceed their Premium Tax Credit (PTC). Eligible taxpayers can claim PTC through health insurance coverage with a qualified health plan purchased through a Health Insurance Marketplace. The process will remain unchanged for taxpayers that claim a net PTC for 2020. Taxpayers who already filed a 2020 tax return do not need to file an amended return or contact the IRS, and the IRS will reimburse any who have already repaid excess APTC on their 2020 tax return. This change only applies to the 2020 tax year APTC.

It is not too late to get help with your 2020 taxes, contact Lakeesha Browne, CPA

“IRS Suspends Requirement to Repay Excess Advance Payments of the 2020 Premium Tax Credit; Those Claiming Net Premium Tax Credit Must File Form 8962.” IRS, 9 Apr. 2021, 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 Accessed 26 Apr. 2021.