Did the government forgive excess premium tax credit in 2020?

[shotgunner]

Today I got a notice from the IRS they changed my 2020 tax return that I filed in early March. The notice said I was due an additional $82 return. No explanation of why other than changes to tax laws, rulings and regulations. Oddly enough I had an excess premium tax credit for HI purchased through the exchange in 2020 for $82. I know the CARE Act increased the tax credit going forward in 2021 but did it also forgive any excess premium tax credit given in 2020?

 

[MRG]

Yes.

 

[cathy63]

The American Rescue Plan Act that was signed on March 11 includes a provision that forgives the repayment of excess advance premium tax credit that was received in 2020.

 

[PaunchyPirate]

… and only for 2020. Don’t plan on it happening for 2021, unless addition legislation is done.

 

[shotgunner]

Thank you everyone. A small but pleasant surprise.

 

[Fermion]

Thank you everyone. A small but pleasant surprise.

It was a $11,000 surprise for us....but I had already sent in an estimated tax payment to cover it before I found out about it.

 

[MRG]

It was a $11,000 surprise for us....but I had already sent in an estimated tax payment to cover it before I found out about it.

+1

It's almost 13k in our case. [emoji846]