A taxpayer’s excess APTC is the amount by which the taxpayer’s advance payments of the Premium Tax Credit (APTC) exceed their Premium Tax Credit (PTC).

Do you have to pay back the premium tax credit in 2020?

IRS Suspends Requirement to Repay Excess Advance Payments of the 2020 Premium Tax Credit. If you have excess advance Premium Tax Credit for 2020, you are not required to report it on your 2020 tax return or file Form 8962, Premium Tax Credit. If you claim a net Premium Tax Credit for 2020, you must file Form 8962.

What is monthly advance payment of PTC?

A tax credit you can take in advance to lower your monthly health insurance payment (or “premium”). If at the end of the year you’ve taken more premium tax credit in advance than you’re due based on your final income, you’ll have to pay back the excess when you file your federal tax return.

What does excess APTC mean on tax return?

A taxpayer’s excess APTC is the amount by which the taxpayer’s advance payments of the Premium Tax Credit (APTC) exceed his or her Premium Tax Credit (PTC).

Is the excess advance premium tax credit still being paid?

ProSeries just updated to comply with the American Rescue Plan Act provision on not applying the excess advance premium tax credit repayment for tax year 2020. While the excess advance premium is still reported in Form 8962, it’s no longer entered in line 2 of Schedule 2, therefore no additional tax is incurred for this item in form 1040.

How to calculate excess premium tax credit repayment?

Taxpayers use Form 8962, Premium Tax Credit to figure the amount of their PTC and reconcile it with their APTC. This computation lets taxpayers know whether they must increase their tax liability by all or a portion of their excess APTC, called an excess advance Premium Tax Credit repayment, or may claim a net PTC.

How are advance payments of the premium tax credit reconciled?

Advance Payments of the Premium Tax Credit. This will increase your refund or lower the amount of tax you owe. When you file, you will use Form 8962, Premium Tax Credit (PTC) to reconcile the amount of advance credit payments with the amount of your actual premium tax credit.