Regarding states handling of unemployment payments:
Please refer to the following link for additional information:
States handling of federal unemployment income
IRS is still making changes to their system for tax law changes found in the American Rescue Plan. After they get their changes into their system, then they have to get together with the software developers with the information for their software changes. Then it takes time to get them into all the versions of the software.
IRS just released a new message stating:
If you have already filed your 2020 Form 1040 or 1040-SR, there is no need to file an amended return (Form 1040-X) to figure the amount of unemployment compensation to exclude. The IRS will refigure your taxes using the excluded unemployment compensation amount and adjust your account accordingly. The IRS will send any refund amount directly to you.
For additional information, refer to the following link:
IRS - regarding unemployment changes for early filers
Some of the TurboTax versions have been updated with the change, such as TurboTax Online. Others, such as desktop, have not yet been updated but are in the process. Desktop if scheduled to release a software update on March 26. If you have Premier Desktop version, hopefully it will be updated on 03/26/2021.
[Edited 03/23/2021|5:20 pm pst]
