Congress also increased health insurance premium subsidies in March, making coverage more affordable for millions of Americans.
While the exchange has temporarily capped premiums at 8.5% of household income, filers may have to repay some of the benefits if earnings exceed the thresholds for 2021.
“It can really be a very unpleasant and stressful situation for those folks that have to pay the money back,” said aid certified financial planner Larry Harris, director of tax services at Parsec Financial in Asheville, North Carolina. Similar to the child tax credit, filers may project 2021 income now to try and estimate liability and set aside money for a future bill, he suggested.
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