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Are you a Taxpayer with Excess APTC?

Repayment of 2020 Excess Advance Premium Tax Credit Suspended (IR 2021-84)

The American Rescue Plan Act of 2021 (ARPA) suspends the requirement that taxpayers increase their tax liability by their excess Advance Payments of the Premium Tax Credit (i.e., excess APTC) for the tax year2020. A taxpayer’s “excess APTC” is the amount by which the taxpayer’s APTC exceeds their Premium (PTC). Taxpayers with excess APTC for 2020 are not required to file Form 8962 (Premium Tax Credit) or report an excess APTC repayment on their 2020 Form 1040 when they file their return. Taxpayers who have already filed their 2020 tax return and have excess APTC do not need to file an amended tax return. Instead, the IRS “will reduce the excess APTC prepayment amount to zero with no further action needed by the taxpayer.” Taxpayers who received a letter about a missing Form 8962 should disregard the letter if they have “excess APTC” for 2020. (Code §36; Premium Tax Credit).


Authored by:

Dr. John Connors, J.D., CPA, LLM

Tax Educator’s Network, LLC


For subscription information on Dr. John Connors’ educational materials, click here.