State treatment of PTC/1095-A

Forum|Forum|5 years ago
May 11, 2021
2 replies
15 views

I have a client who has a multi-state return due to selling a rental property in AZ. They are Oregon residents.

Due to the capital gain on the sale of their house, their income was higher than expected (spouse receives payments for marketplace insurance).

When I entered in the info from the 1095-A, it generates a "credit recapture" amount due to the NR state (Arizona).

Does this seem right? Does the American Rescue Plan provision for now having to pay back excess not apply at the State level?

ProConnect Tax

This topic has been closed for replies.

Best answer by George4Tacks

Check your Client Information screen - the first check box for Full Year Resident? should be checked. That MAY be the problem.

T

TaxGuyBill

Level 15

The Federal law only applies to the Federal tax return.

If the State tax return does something with the Premium Tax Credit, you would need to check with how the state is treating that now with the new Federal law. But don't just assume that the software is doing it correctly, because there could be errors. So be sure to check with the State to see how it should be handled.