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 APTC exceed his or her premium tax credit (PTC).
Taxpayers with excess APTC for 2020 are not required to file Form 8962, Premium Tax Credit, or report an excess repayment on their 2020 Form 1040 or Form 1040-SR when they file.
The IRS is taking steps to reimburse people who filed Form 8962, reported and paid an excess APTC repayment amount with their 2020 tax return before the passage of recent legislative changes. Read more.