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Returning Member
posted Mar 6, 2021 5:54:49 PM

Senate covid relief bill. New tax exemption.

With the Senate's amendment of the stimulus bill, up to $10,200 in last year's (2020) unemployment payments are to be exempt from taxes. I did not withhold from my payments so I was liable for a payment. How does turbo tax plan to help people that already filed and paid? It seems amendment forms will not be available until the end of the month. Not that the software is updated yet. I realize this is pretty much unprecedented. Just wondering what peoples thoughts on it were

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4 Replies
Level 15
Mar 6, 2021 6:03:26 PM


@snyders027 wrote:

With the Senate's amendment of the stimulus bill, up to $10,200 in last year's (2020) unemployment payments are to be exempt from taxes. I did not withhold from my payments so I was liable for a payment. How does turbo tax plan to help people that already filed and paid? It seems amendment forms will not be available until the end of the month. Not that the software is updated yet. I realize this is pretty much unprecedented. Just wondering what peoples thoughts on it were


Where do you see that?  I am looking at the text of the bill and I don't see that anywhere.

Returning Member
Mar 6, 2021 6:30:29 PM

I didn't read the bill itself. However, It's in pretty much every news story about the bill.

 

Heres one I pulled at random.

 

https://www.cnbc.com/2021/03/06/covid-stimulus-update-senate-passes-1point9-trillion-relief-bill.html

 

Just search: "10,200". Should jump you right to the information.

Returning Member
Mar 9, 2021 6:35:08 AM

What if you had the 10% tax taken out of unemployment benefits? I assume TurboTax would calculate a refund/credit for it?

Level 15
Mar 9, 2021 7:51:33 AM

It has not been passed by the House yet or signed into law.  Then the IRS must write the new tax rules and new forms to claim it.     The last time Congress passed a retroactive tax law (about 6 years ago) the IRS took more than 4 months to do that.

 

There is nothing that TurboTax or any other company can do without the new electronic form specifications from the IRS.