If you bought coverage through one of the health insurance marketplaces, you should receive Form 1095-A, that provides information needed to claim the tax credit. If you already filed your 2020 tax return and paid back an excess of Advance Premium Tax Credit (APTC) for 2020 due to your actual 2020 income being higher than what was projected, you 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 action needed from the taxpayer. The IRS will then reimburse you if you already repaid any excess premium tax credit on your 2020 tax return.

1. When you complete your tax return, you will figure your credit and compare it to the amount of APTC on Form 8962.
2. If your actual allowable credit is more than your advance credit payments, the difference will be added to your refund or subtracted from your balance due.
3. If you don’t have your forms on hand, you can auto-import your info from your W–2s or 1099s directly from more than a million participating employers and financial institutions.
4. When you file your 2015 taxes with TurboTax, you will enter the information from the Form 1095-A just like you would a W-2.

That income range is between 100% – 400% of the federal poverty level. As of 2022, the federal poverty level for most of the United States was $13,590 for a single person. The 2022 amounts are the latest available during open enrollment for 2023 and are therefore used with your 2023 tax return. The premium tax credit was created to provide affordable health insurance to eligible families and individuals with low to moderate incomes. It’s available only for health insurance purchased through the Health Insurance Marketplace (also known as the “exchange”). If you computed PTC on your return that’s more than the APTC paid on your behalf during 2020, the difference is a net PTC.

Still Need to File Your 2015 Taxes? File Now to Get You…

The Affordable Care Act requires most Americans to have health insurance, but what if you need help paying for coverage? The Premium Tax Credit is a new refundable tax credit that can lower your monthly health insurance premiums. Answer simple questions and TurboTax Free Edition takes care of the rest.

The TCE program is geared at taxpayers age 60 and above. Here’s a link where to find nearby organizations participating in the VITA and TCE programs. The IRS has a list of the tax scenarios that Free File providers can handle. It includes capital gains and losses, self-employment taxes, and child and dependent care expenses — all of which aren’t included in the free versions of TurboTax and H&R Block, or IRS Direct File.

You should receive Form 1095-A that reports the information you need about your Marketplace Insurance. Since the cliff was removed the form 8962 is basically useless and premium tax credit turbotax the repayment will not be required … Ignoring that form is what you need to do at this time until the form is fully functional in the program sometime in January.

What’s the meaning of all the different colors in Forms Mode?

The vast majority of individuals who need to repay excess advance payments will satisfy that balance through a reduction in their expected income tax refund. However, if you owe a balance in excess of your refund, you should be aware that the IRS routinely works with taxpayers who owe amounts they cannot afford to pay. The ability to make a payment arrangement for these underpayments is identical to the provisions for other tax balances.

Using the information on the form

TurboTax Premium is a great solution if you feel comfortable doing your own taxes. If you want to do your own taxes with unlimited expert help as you go, choose TurboTax Live Assisted Premium. Or have a dedicated expert do your self-employment and investment taxes for you with TurboTax Live Full Service. Let our credentialed small business tax experts help or even do your taxes for you.

If your estimated income falls between 100% and 400% of the federal poverty level for a household of your size, you can claim the premium tax credit. You may use some or all of this credit in advance to lower your monthly premium costs, leaving money in your pocket. If you bought your plan there, you should get a Form 1095-A, also called the “Health Insurance Marketplace Statement.” The IRS also gets a copy of the form. The form provides information about your insurance policy, your premiums (the cost you pay for insurance), any advance payment of premium tax credit and the people in your household covered by the policy. If you have already filed your 2020 tax return and reported excess APTC or made an excess APTC repayment, you do not need to file an amended tax return or contact the IRS.

For tax years other than 2020, if your household income reported on your tax return is 400 percent of the FPL (which is based on household income and family size) or higher, you must repay the full amount of APTC that exceeds your premium tax credit. See Publication 974PDF for more information on the repayment caps. If your employer offers affordable self-only coverage, generally you are not eligible for the premium tax credit. However, the regulations under Internal Revenue Code section 36B provide an employee safe harbor for certain affordability determinations made by the Marketplace.

The Premium Tax Credit – The Basics

TurboTax will also easily figure out if you received too little APTC to help pay for Marketplace coverage and whether you are eligible for a Premium Tax Credit. To claim a premium tax credit for any tax year in which no APTC was paid on your behalf, you must file a Form 8962 and attach it to your federal income tax return for the year you claim the premium tax credit. Also, for all tax years, if APTC is paid on your behalf but your premium tax credit is more than the APTC, you have net PTC.

Before taking any action, you should always seek the assistance of a professional who knows your particular situation for advice on taxes, your investments, the law, or any other business and professional matters that affect you and/or your https://turbo-tax.org/ business. With TurboTax Live Full Service, a local expert matched to your unique situation will do your taxes for you start to finish. Or, get unlimited help and advice from tax experts while you do your taxes with TurboTax Live Assisted.

There are other IRS-backed free tax-preparation programs. They include the Volunteer Income Tax Assistance program and the Tax Counseling for the Elderly program. It can also handle the taxes connected to money coming from a retirement account, like a 401(K), or a pension, a spokeswoman said. Intuit said it will appeal the FTC’s “deeply flawed decision” and insisted to regulators that its disclosures were sufficient. TurboTax now says around 37% of tax filers qualify for its free edition, and some of its current TV ads highlight this.

But Direct File cannot process the tax credit for households with health insurance through the Affordable Care Act’s exchange. It also can’t handle provisions like the “saver’s credit” for retirement contributions, independent contractor money or capital gains. It can handle income reported on W-2 job wages, unemployment benefits and Social Security payments. It can also handle interest income up to $1,500.

According to the federal forms availability list, Form 8962 is currently expected to be available in TurboTax on January 19. (That date is subject to change.) Until it’s officially available, it might not work correctly and cannot be relied on. If you make changes to your original tax return file, repeat these steps to ensure your original and backup copies are in-synch.

TurboTax will calculate whether you should use itemized deductions or the Standard Deduction to lower your taxable income as much as possible. This IRS provision suspending the pay back of excess APTC only applies to the 2020 tax year (the taxes you file in 2021). But that’s the Windows software…..not a MAC. For a MAC you cannot turn off the auto updater  HOWEVER  you can simply disconnect from the internet before opening the tax return.