Making Finances Simple. Changing Lives.
The American Rescue Plan (ARP) made a change to the Premium Tax Credit rules for healthcare. Those who receive excess credits during the year usually have that reconciled and repaid through their tax return filing…
2020 Rules Changed
For the 2020 tax year, the enacted ARP suspended the requirement to repay excess advance payments of the Premium Tax Credit (excess APTC).
Any taxpayers who paid an excess APTC repayment amount with their 2020 tax return filing will automatically be refunded those payments by the IRS.
The refunds will be applied by the IRS just like the unemployment compensation income exclusion refunds: direct deposit for those with banking info on file…mailed paper checks for all others.
The IRS has asked affected taxpayers to NOT file amended returns and wait for their automatic refund.