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. 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).
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.
This change will be a relief for taxpayers who had more income in 2020 than they did in 2019.
Nonetheless, eligible taxpayers may still claim a PTC for health insurance coverage in a qualified health plan purchased through a Health Insurance Marketplace. This will benefit those who had health insurance through the marketplace and less income in 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.
This change will be a relief for taxpayers who had more income in 2020 than they did in 2019.
Nonetheless, eligible taxpayers may still claim a PTC for health insurance coverage in a qualified health plan purchased through a Health Insurance Marketplace. This will benefit those who had health insurance through the marketplace and less income in 2020.