IRS Suspends Requirement to Repay Excess Advance Payments of 2020 Premium Tax Credit
The American Rescue Plan Act of 2021 suspends the requirement that taxpayers increase their tax liability by all or a portion of their excess advance payments of the Premium Tax Credit (excess APTC) for tax year 2020. A taxpayer's excess APTC is the amount by which the taxpayer's advance payments of the Premium Tax Credit exceed his or her Premium Tax Credit.
Taxpayers with excess APTC for 2020 are not required to file Form 8962, Premium Tax Credit
or report an excess advance Premium Tax Credit repayment on their 2020 Form 1040 or 1040-SR.
Taxpayers who have already filed their 2020 tax return and who have excess APTC for 2020 do not need to file an amended tax return or contact IRS. IRS will reduce the excess APTC repayment amount to zero with no further action needed by the taxpayer.
IRS will reimburse people who have already repaid any excess advance Premium Tax Credit on their 2020 tax return. Learn more here