Employee Benefit News for School, City and County Employers

Premium Tax Credit FAQs

Written by Valerie Ortiz | Apr 16, 2021 11:58:17 AM

1 minute read

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.

This blog is intended to be a compilation of information and resources pulled from federal, state, and local agencies. This is not intended to be legal advice. For up to the minute information and guidance on COVID-19, please follow the guidelines of the Centers for Disease Control and Prevention (CDC) and your local health organizations.