Advance Premium Tax Credit - Spidell

Advance Premium Tax Credit

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Message Board Advance Premium Tax Credit

  • This topic has 9 replies, 6 voices, and was last updated 1 day, 6 hours ago by Steven Yukelson.
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    • #298168
      Anonymous
      Participant

      Have a client with advance premium tax credit of 5K that needs to be repaid. Now with the ARP, can I just remove the amount from the form and file the return and put in a preparer’s note to IRS, or I should wait for  further IRS guidance. We haven’t filed the return as yet. But 5k less still means a lot for the client.

      Thanks

    • #298175
      Sandy Weiner
      Participant

      I believe most tax software has been updated to reflect the repeal of the repayment.  Do you have the latest software update?

    • #298253
      Sandra Sunken
      Participant

      I use Ultra Tax and it has not yet been updated. Anyone using other software having better luck?

    • #298257
      Anonymous

      Yes, Lacerte just made the update and for Federal the repayment was suspended.

      Client got hit with repayment to California though. I guess there is no way around that?

    • #298272
      Sandra Sunken
      Participant

      I contacted Ultra Tax and they are telling me the IRS has not yet provided the guidance to remove the repayment. Amazing how Lacerte gets updates before Ultra Tax.

    • #298278
      Ian Alper
      Participant

      Ultra-tax is saying they hope the update will be out tomorrow.

       

    • #298285
      Sandra Sunken
      Participant

      I should speak with your UltraTax representative because the one I’m emailing is telling me they don’t know when the updates will be issued. Go figure.

    • #298294
      Mark Bole
      Participant

      “I contacted Ultra Tax and they are telling me the IRS has not yet provided the guidance to remove the repayment. Amazing how Lacerte gets updates before Ultra Tax.”

      This is why I trust UltraTax.  Lacerte, Drake, and the other vendors are just gumming up the works for everyone else.  Do you really think these prematurely-submitted returns aren’t going to be held up or get CP2000 letters at some point?

    • #298295
      Ian Alper
      Participant

      I am thinking I agree with you Mark.  When I looked into this further seemed like the other companies jumped the gun on this.

    • #298410
      Steven Yukelson
      Participant

      IRS just released (4-9-2021) IR-2021-84 that provides guidance regarding this issue.

      In part, it states “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.”

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