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Form 8962

Lucy5
Level 2

Has Lacerte updated the Form 8962 for the waiver of repayment of excess advane payment of PTC under the American Rescue Plan

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13 Replies 13
TylorValdez1
Employee
Employee

We have not. The IRS has not issued guidance on how to handle the scenario. See https://www.irs.gov/affordable-care-act/individuals-and-families/questions-and-answers-on-the-premiu...

The only thing we have heard is strictly to not file an amended return for these client.

Genevia
Level 1

We are awaiting update as well for the Premium Tax credit waiver for a number of clients.  There appeared to be 2 Lacerte updates today, but does not appear that changes were made.  Will await word.

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mtnmom2
Level 2

this is what happens when you only have 1 person figuring out these updates & then can only issue 1 a day (or maybe only 1 per week).   

Ok, that's a bit harsh, but preparing Tax returns correctly is OUR livelyhood.  We are trying to be patient (our clients....not so much!)

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Lucy5
Level 2

Received the answer I needed not necessarily the answer I wanted

Insert eyeroll here

rbynaker
Level 11

There seems to be some movement on this.  I've heard through the grapevine that TaxAct has updated their software for this yesterday and Drake is scheduled to do so tomorrow morning.  My guess would be that Intuit products would be updated next week.

Illni
Level 4

For all the fees Lacerte charges us, why are we always the LAST to get software updates? It's embarrassing to go to a forum online and compare software and the cheap software users always gets theirs  fixed way before we do.

TylorValdez1
Employee
Employee

I am not sure what changes you are looking for the in regards to the 8962. The IRS still has not issued guidance, so I am unsure what the other tax software would be changing. We will implement changes to the software once that guidance is issued. Below is all that any tax software vendor has.

https://www.irs.gov/affordable-care-act/individuals-and-families/questions-and-answers-on-the-premiu...

 

Check Back for Updates to this Page

"We’re reviewing the tax provisions of the American Rescue Plan Act of 2021, signed into law on March 11, 2021. Taxpayers who filed a 2020 tax return and reported an excess advance premium tax credit repayment on Line 29 of Form 8962, Premium Tax Credit, should not file an amended tax return only to get a refund of this amount. The IRS will provide more details soon. For the latest updates, check IRS.gov/coronavirus."

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Illni
Level 4

According to Drake users, their software update attaches an information 8962 to the 1040 but leaves the repayment amount off of the 1040. Sounds like a reasonable and simple fix to me -- maybe you should call Drake?

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TylorValdez1
Employee
Employee

My guess is that those returns are going to get rejected based on MEF schema rules, if the IRS has not updated the schema. I appreciate the feedback and will share with my development team.

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Illni
Level 4

You're guessing? Drake, Tax Act got their software fixes for this issue on Saturday -- also H & R Block got the fix on Saturday -- you need to update your rolodex with the IRS.

sjrcpa
Level 15

@TylorValdez1 Apparently this is what Drake told its users:

Advanced Premium Tax Credit Repayment

As of April 3, 2021, EF message 2613 has been removed and returns with excess Advanced Premium Tax Credit (APTC) can now be filed.

The American Rescue Plan Act of 2021 (ARPA), passed in March 2021, contains a provision to no longer require repayment of any excess APTC on 2020 tax returns. Recent IRS guidance relative to this provision instructs taxpayers who have an amount on line 29 of Form 8962 to not include Form 8962 with their return.

Drake20 will continue to produce Form 8962 for review purposes only. The form will not be included with the e-filed return, and should not be mailed with a paper-filed return. Although filing Form 8962 is required of taxpayers receiving APTC, the IRS intends to make internal changes that will prevent these taxpayers from receiving correspondence regarding Form 8962 not being filed.

The IRS has not yet released guidance on returns that were previously filed with an advanced premium tax credit repayment included on line 29 of Form 8962.

 

I copied and pasted this from another forum.


ex-AllStar
TylorValdez1
Employee
Employee

Thank you @sjrcpa. Sending to my development team.

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TylorValdez1
Employee
Employee

Lacerte update for APTC should be out Thursday 4/8/21.

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