IRS Issues Guidance on 2020 Advance Premium Tax Credit Form 1040 Filings
The American Rescue Plan Act of 2021 added IRC §36B(f)(2)(B)(iii) that provided that taxpayers are not required in tax year 2020 to repay advance premium tax credits received in excess of the premium tax credit they actually qualified for. In IR-2021-84[1] the IRS described the procedures that taxpayers will use to deal with this retroactive change in the law, one enacted after some taxpayers had filed 2020 tax returns paying back the excess advance premium tax credit.
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