American Rescue Plan how long before it is in the income tax software?

[FANOFJESUS]

I would like to ask everyone how long do you think it will take American Rescue Plan to make changes to the tax software for year 2020? I am referring to the ACA clawback.

[cathy63]

1. IRS has to decide what to do.
2. IRS has to communicate their decisions.
3. Software companies have to implement changes.

TaxSlayer estimates that they'll implement whatever the IRS decides by April 1, because they're assuming the IRS is going to get info out ASAP. I haven't seen anything from any other company.

[Finance Dave]

Don't know, but our CPA told me yesterday that he expects the filing deadline to be extended by 60 days. Only time will tell.

[PatrickA5]

Not sure when Turbotax will be updated. I'll have to amend my DD's return to get back money paid on unemployment.

[VanWinkle]

As a Tax-Aide preparer for AARP, we have been advised that we can hold returns if requested until April 1st which is the date they expect the IRS directions to be received by Tax Software companies. It only matters if you have ACA subsidy problems or unemployment income for 2020. The tax can be waived on the unemployment(First 10200) if you are under a certain income.

"The American Rescue Plan Act passed by Congress includes a tax waiver on the first $10,200 of unemployment compensation for taxpayers with incomes of $150,000 or less for the 2020 tax year and a waiver of repaying any excess Advance Premium Tax Credit (APTC) for those who purchased health insurance through the ACA marketplace. Since these waivers will likely lead to a smaller balance due/larger refund once implemented, holding the return pending IRS directions if requested"