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The IRS has released a fact sheet with FAQs which addresses legislative changes for the premium tax credit due to the American Rescue Plan Act (ARPA). The fact sheet discusses how to claim a net premium tax credit (net PTC) and what to do if you have excess advance payments of premium tax credit (APTC) for tax year 2020.
The ARPA suspends the requirement that excess APTC received for the 2020 tax year be repaid. The excess APTC is the amount in which the taxpayer exceeds the premium tax credit amount they are entitled too, based upon their actual income for the year.
Taxpayers with excess APTC for 2020 are not required to file Form 8962. However, eligible taxpayers claiming a net PTC must file Form 8962 when they file their 2020 tax return.
Download the bulletin for more details.
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