@jeffrey1719 wrote:
The IRS has already stated not to file an amendment tax for 2020. No defined instructions has been clearly given YET. But two possibilities can occur. Eith they advise us to amend it layer down the year or they will review the 45 million returns that were files before the law took place and correct themselves and issue you an additional tax refund. No clear instructions given yet other then to not file an amendment.
The $10,200 unemployment retroactive to 2020 was just signed into law. Now the IRS is responsible for writing regulations and rules for claiming it.
Software changes do not happen overnight - it takes time to test, package as an update and fit into the existing update schedule. Probably a few weeks.
The IRS has yet to offer guidance for e-file providers. What the IRS published is for hand filled paper returns. Electronic returns are totally different and require IRS issued e-file specifications that both the e-file providers system and the IRS system are programed for so they can talk to each other. That takes a lot of development by the IRS to supply the e-file specifications for the change. e-file does not send forms it sends encrypted data.
There are still several issues that Congress did not address, for example the EIC credit, Child tax Credit, QBI credit, IRA contribution limit, and others, depends on income and AGI. With the unemployment exclusion from income how are those calculated - before or after the exclusion? The IRS must issue regulations and form changes to deal with that.
TurboTax can e-mail you when the change is ready.
https://ttlc.intuit.com/community/tax-topics/help/how-do-i-claim-the-new-unemployment-benefits-in-tu...
https://www.irs.gov/faqs/irs-procedures/forms-publications/new-exclusion-of-up-to-10200-of-unemploym...
Also see:
https://www.irs.gov/newsroom/irs-statement-american-rescue-plan-act-of-2021
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
