Those who received excess advance payments of the premium tax credit don't have to file Form 8962 to reconcile that amount with the amount of the credit they were actually entitled to, the IRS said in a news release. While people normally must repay credit amounts they received as advance payments that they weren't eligible for, the American Rescue Plan Act eliminated that requirement for the 2020 tax year, according to the IRS.
The Patient Protection and Affordable Care Act created the premium tax credit to subsidize insurance purchased through the ACA's health care exchange. People can receive advance payments of the credit based on estimates, but they must pay back any excess credit they receive and file Form 8962 to compute that amount, according to the IRS.
The IRS also said Friday that people do not have to report excess payments they receive on their Form 1040 for that year. But people claiming a net premium tax credit or those eligible for more of the credit than they received in payments through the year must file Form 8962 for 2020, according to the agency.
--Editing by Vincent Sherry.
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