No Form 8962 required for 2020 excess Premium Tax Credits - Spidell

No Form 8962 required for 2020 excess Premium Tax Credits


The American Rescue Plan Act provides that taxpayers who received too much Premium Tax Credit in 2020 are not required to pay the excess back on their 2020 tax return. The question has been how that will be handled with the 2020 return, and what to do for taxpayers who have already filed returns and repaid the excess amounts.

The IRS has announced that taxpayers with excess Advanced Premium Tax Credits (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. (IR-2021-84)

Taxpayers who already filed their 2020 tax return and repaid excess APTC do not need to file an amended tax return or contact the IRS. The IRS will automatically reduce the excess APTC repayment amount to zero and will refund those amounts to taxpayers.

Taxpayers who received a letter about a missing Form 8962 should disregard the letter if they have excess APTC for 2020.