New Exclusion of up to $10,200 of Unemployment Compensation

Yes, you are correct. The way to exclude the Unemployment Compensation income is on a new Unemployment compensation Exclusion Worksheet. The IRS is working with software companies to implement this worksheet as soon as possible. 

To read more about eligibility and this worksheet see: IRS: New Exclusion of up to $10,200 of Unemployment Compensation

Due to my wife receiving unemployment, our AGI was pushed over 150,000.  Will we be able to exclude the 10,200 as without the 10,200 our AGI would be under 150,000.

Looking at the IRS guidance it looks like they are using the term modified adjusted gross income despite the bill simply stating adjusted gross income. This would imply certain above-the-line deductions not being allowed to calculate your AGI for this exemption. That being said, the specific instructions seem to allow for the traditional above-the-line deductions (i.e. student loan interest) to your gross income when making a determination if you are below the $150,000 cap. Am I reading this right?

If we make under $150,000 and received unemployment under $10,200. Can we just omit putting the information in? It’s not going to count anyways, so what’s the point of waiting?

Has anyone had any luck filing taxes yet and receiving the tax break for unemployment (up to 10,200?) I did our taxes (haven't filed yet) and keep checking back thinking it will update the correct refund amount but nothing has changed for me. I guess I just would like to know what we need to do and how long this could take? 

I went through process of entering my information into TT. When I got to the review section there was a prompt informing me that they were working on implementing the American Rescue plan changes.  It then gave me two options:

1. File now 

2. Wait until the changes had been implemented. 

I selected 2. The screen then informed me that it would send me an email when the changes had been made and that it would automatically make the necessary adjustments for me, all I would have to do is review and submit. 

Not exactly what you were looking for I'm sure, but at least you know you can input your information at this point and that the text software will make the adjustments for you. 

Hope that helps!

Hi.. thanks for all the info and signed up for the email update. But, if we are using TurboTax online, can we start on our taxes and put everything in and just not finish/file until after the update? Will the update then reflect if we sign back in? Or do I need to wait and do the taxes completely once the update is done?

I received this update this morning from Turbo Tax. I have been waiting an update from them just like many others so I thought I would share.

Dear TurboTax Customer,
 
We're working around-the-clock to make updates to TurboTax based on the recently-enacted American Rescue Plan so you can file with confidence and get your maximum refund.
 
You indicated a preference to wait for a product update related to Unemployment benefits. Because of this, we're informing you we expect TurboTax to be updated on Friday (3/19) to include the new federal tax relief calculations. Please login to your TurboTax account to continue when you are ready.
 
Thank you for being a TurboTax customer.
 
Sincerely,
The TurboTax Care Team

Just had a call with turbo tax customer service, They'll be releasing a large update March 25th.  All the information, and forms should be available then. She told me to keep checking back though because it could come sooner as well. 

Is turbo-tax updated and ready for new Unemployment compensation break that was just announced last week (first $10200 exempt from tax)?