Sch C / PTC payback

[Rich]

Good day,

If Sch C tp gets Premium Tax Credit, but ends up having to pay a portion of that back on tax return, can the portion paid back be written off as SEHI deduction? Thanks in advance

[AZUKHiker]

Yes.

BUT

You may wish to hold this return. The next stimulus package has a draft provision to forgive 2020 excess advance PTC.

[TaxGuyBill]

It is likely that your software automatically does it, so be sure to check that before you try to add it elsewhere.


It is interesting about the draft provision. Without reading it yet, it seems odd to forgive a debt because that person's income was HIGHER than they expected.

[Lee Welter]

It's a circular equation.

[Rapid Robert]

Yes.

No.

Paying back the APTC (if that is what the OP was referring to) is like paying back principal on a loan, there is no deduction for it. The deduction for actual net health insurance premiums was already calculated elsewhere, based on the actual PTC (not the APTC).